series 7 causing furure problems?

Discussion in 'Professional Trading' started by Warrior4g, Mar 30, 2008.

  1. can taking the series 7 actually cause problems in the future for someone? does the sec do random audits on series 7 holders? how about the IRS? what about deciding to incorporate a "side business" that has nothing to do with the market(ie. construction ect)?
    the reason i am asking is that i am OBVIOUSLY considering taking the exam but someone just told me it could be more of a problem having one if all i want to do is trade. just need some input on the negatives if anyone knows of any?
  2. Surdo


    If you DO NOT need it to make money trading, why take it?
    You will be required to pay "professional fees" as well as reveal any outside business activities to your home firm.

    I do not think "Big Brother" gives a rat's ass if you are licensed or not!
  3. The main benefit is leverage. Most traders need (or at least would benefit from) greater leverage than 4-1. If you don't need the leverage, no real reason to get the 7. I guess if you ever left trading and wanted to get into another financial field that required the S7, it would be good to already have it.

    The main drawbacks are accountability (red tape). You will now be under the watchful eye of the regulators, which shouldn't be much of an issue for an independent trader as long as you go by the book. You will have to disclose outside business activities. I've never heard of random audits because of it, seems a bit conspiracy-theorish to me, although I suppose I wouldn't put anything past them at this point. You also will have to pay higher fees for data, taking the exams, continuing ed, etc., but they aren't insurmountable assuming you're a profitable trader.
  4. i guess the best thing to do would be to have an outside business in another persons name. why even give the sec that kind of info? screw that.
    i think most people want the 7 because they can trade with lower than 25k,lets be honest.
  5. moondog


    I know alot of people dumping their 7's because they dont want to be considered 'experts"