I received notification that Richard Regan's Pro Trading Course is ceasing operations. Unfortunately, it looks I will be out all of the money (over 10K) that I paid to get a prop account. He does not reply to emails or phone messages. I am interested in talking with anyone who may be in a similar situation with them to discuss options we may have to get back any funds. I would also be interested in hearing from anyone that may have a comment on their business practices. Thanks.
Sorry to hear about your loss but that course had scam written all over it. If it was sold as education then I'm not sure you have any re-course. That is how most these guys protect themselves legally.
I would have to disagree, if he was taking funds into an account which included the trading or investing of securities using Regan as an intermediary, then isn't Regan subject to SEC/CFTC oversight? It should not matter what Regan purported the funds were for if there was any investment aspect that routed that money into a risk investment vehicle it seems to me. I would hope the client didn't sign over power-of-attorney to the educator in terms of disposition of the funds.
I'm afraid that is not the case. What these guys do is sell the "education" as the product. The prop account is an internal proprietary account, it's not in the trader's name. Think of it this way. It's like going to a true prop firm where they back you 100% with their funds. But before you start, they sell you a 10k book that you have to read. Your money went towards the purchase of the book, an educational product that will improve your trading. The two things are completely separate. A lot of firms are doing this and it's very clever. You are not trading a customer account. If he were a customer he would be protected by either securities laws through FINRA or as a segregated futures customer account. I'm afraid he paid 10k for the education and that is what they gave him, an education.
Yes, all these guys fish for clients by getting spots on CNBC. It's actually pretty easy. CNBC doesn't do any background on these guys.
That is incredibly unethical and downright slimy. Is there any precedent or case study on this with the regulators ? Is there a downside to filing a complaint ? How can an educator even insinuate that trades are internal prop or whatever and not be subject to broker/dealer rules at least ? Criminal.
Well, there are probably 20 or 30 firms that do it. It's actually been discussed widely on ET. Many are angry about it here. The educator is not insinuating anything, they are making it very clear that you are paying for an educational course in which they have the "discretion" to take you on as a prop trader. Legally they don't have to as they leave themselves with many outs in the contract. No downside in filing a complaint. It will go on the record. But I really don't think he has a leg to stand on unless Reagan didn't not deliver on the actual educational content. If he did, then this guy got what he paid the 10k for. Pro Trading is regulated as a trading entity but I don't see where they did anything wrong as a trading firm. This guy just has to go over the contract he signed and look for a loop hole somewhere. He might be able to catch them on something.
Brett Steenbarger has some nice comments on this very topic here: http://traderfeed.blogspot.com/2010/01/should-proprietary-trading-firms-charge.html
I am truly insulated here in Chicago; never heard such a thing. Hell, here in Chicago, futures prop firms never accepted trader funds. Another good reason for educators to be licensed or at least registered with FINRA / NFA. Something. No references and client referrals I suppose on the guy. Sux.