Hello, if I trade through a prop firm by using my own money (that is, the prop firm only gives me access to its platforms but I trade my own capital) is my money that I deposit in the prop firm's account insured by SIPC or any other protection so that if the prop firm goes bunkrupt I don't lose my money? Thanks.
No. If you join a prop firm that is a Broker Dealer, you have no account, the firm does. BDs are not protected by SIPC, only customer accounts. You're trading for the firm in a sub-account to keep track of your P & L and expenses. That account is NOT in your name or SS# or EIN#. This is why choosing a propr firm by the lowest rates is not the best strategy. You have to take into account management and ask for their lasted focus report. 1245