JC Trades a so called TradersBlog http://jctrades.com/ Posted a review of Suretraders. This firm was promoted by Timothy Skyes for awhile. They have very enticing trading structure, however all the reviews online are negative. So I searched online to find anyone with a positive experience with the firm that could offer some positive insight. I ran across JC trades and posted a comment regarding they're negative reviews. Of course all post are reviewed before being made public and this was his response via email, rather incriminating if you ask me. "The SureTrader Review on my website is how I earn affiliate commission to help keep the website online. The review was designed to accentuate the benefits of their services for those who are interested in signing up. No comments will be posted that shed a negative light on the company. Thanks, JC"
The reason why some traders (and trading groups) prefer Suretrader is because the firm is a registered broker in the Bahamas and doesn't require the Series 56 license from U.S. citizens. I'm not sure why "all the reviews online are negative." You'd have to be more specific in the allegations on the context of the negativity. When the Series 56 license came to fruition, traders in my prior prop firm left to join Suretrader. I decided to get the license and stay with a U.S. broker/dealer (although I no longer trade with a prop firm, only retail). As it turns out, now the IRS is demanding FBAR filings from those who have offshore funds greater than $10k in any foreign bank or firm, and perhaps that accounts for some of the "negative" reviews. Or perhaps with the recent rule changes, only U.S. citizens who reside OUTSIDE the U.S. can open accounts. But that is not an issue with the firm itself, it's related to complex SEC regulations and U.S. tax law. (Of course, don't rely on a message board for tax advice). Since Suretrader takes smaller account sizes, I think it's a viable alternative to the U.S. firms and that's why traders promote it. If you have questions, then it's probably best to read their FAQ's on the Suretrader.com site or just ask them about your concerns. My guess is those "negative online reviews" are probably unwarranted, and hence JC is monitoring the posts which seem disingenuous or without merit. However, IF there was some genuine concern of wrongdoing by any firm that would benefit the public through disclosure, then it would seem rather suspicious for any trading group to block a posting simply because it could "shed a negative light on the company." Always conduct your OWN due diligence before joining any firm. Ok hope that helps.
Are you currently trading with them? I want to open an account but $100 to withdraw your money is ridiculous. They're are post in here that warns about opening an Account with them! Regarding your 56 license, since you aren't actively with a prop firm. How long before your license becomes invalidated? Or will it get reinstated when you register with another prop firm.
Did you read their FAQ's? I've provided the link below. It says the minimum to open an account is $500. Yes, the $40 outbound fee is "ridiculous" if you're constantly wiring out funds, however given that it's a foreign wire transfer, the fee is quite standard. Some domestic banks may also charge you an INBOUND wire transfer fee. For example, Chase charges $15, so your total costs just to receive a transfer between your Suretrader account and Chase is $55. I've seen some of the "warning" posts and most of the concerns are regarding their fees, especially for withdrawing money (which you already mentioned). There are also some warnings about doing business as a U.S. citizen with an offshore firm, however as I mentioned, there are rules regarding foreign income reporting, and Suretrader apparently had U.S. clients that weren't filing their FBAR forms. As I said, that's a TAX issue, NOT a firm issue. Regarding the Series 56 license, it's valid for two years after leaving a firm, and it's not automatically reinstated. After two years, the license becomes invalidated, and you have to retake the Series 56 test before joining another firm. And to answer your other question, I don't trade with Suretrader. http://suretrader.com/support/frequently-asked-questions/
Why the hell would someone open an account with a place like this ? There are so many red flags with these places. The fact they are offshore and basically unregulated (good luck getting your money out if something goes wrong). It's obvious the IRS is breathing down their necks. Take the Series 56 ( get the books and study, everybody I know Passed it), and put your money up with a real firm that is reputable. Sure you might have to give up 10% of the profits, but worth it to be able to sleep at night and know your money will be around the next day. The fact that people used the Series 56 exam as an excuse to not go prop is nuts compared to sending your money to some island to trade. It amazes me anyone would go this route.
Actually, Suretrader is regulated: "SureTrader is a division of Swiss America Securities, Ltd., founded in 2008. We are a Bahamas-based broker/dealer regulated by the Securities Commission of the Bahamas." Of course, who knows about the "regulations" of a Bahamas corporation, lol! I agree with your comments regarding the Series 56, better to stick with U.S. broker/dealers. The OP was looking at opening a much smaller account, and I think that's why traders are lured by Suretrader, given that it's a lower minimum, catering to the penny stock flippers.
And would you feel safe being regulated by the Securities Commission of the Bahamas ? I meant U.S. regulation. Who the hell knows what their laws are regarding people trading U.S. stocks over there. It's almost as good as being unregulated. Most of the prop firms here take smaller accounts, probably as low as 5k. I can't imagine anyone trying to trade equities with less than that. Futures, sure......but not equities. Another problem for these penny stock guys is the cost of locates for the hard to find shorts. The costs are very high, and for a guy with a grand or two that will quickly deplete your funds. Think about it guys......there are reasons they are offshore, and none of them are good.
Suretraders actually have the potential of being one of the biggest prop firms. However that doesn't seem to be their primary objective. The fee structure is not to bad the unlimited day trades and leverage is a big plus. However to many negative reviews are out there when it comes to withdrawing funds. How can a prop firm with over 10K clients not have an 800 number??