As you know i support prop firms. They are my livelyhood. Here is a read for fellow supporters, or not. https://mdfinancialskills.org/cftc-vs-my-forex-funds/
Another analysis piece that’s inaccurate. Any firm that has funded traders in sim is violating one of the pieces of legislation that the CFTC are going after MFF for. The author of that piece also fails to make the connection that paying funded traders profits from evaluation fees is a clear sign that funded traders are in sim. The CFTC case can act as a precedent for the whole industry. It’s clear cut.
Clearly you have misunderstood the sim thing. That is obviously not illegal. Here is a paragraph from the article
What law is for example Topstep breaking with what they are doing? One day the "Test fees" are going to be considered as same as a deposit at a broker upon which you get leverage ( Like all regulated futures brokers ) and thus will have to be an regulated IB via an bigger FCM ) and then the screw will be tightened to skirt this issue these "Firms" separate the two arms , one is a "evaluation arm" and that passes on the trader to a "Funding arm" h.........m If I take 100 from you under disguise of Test fee or education and then give you access to a a larger amount that is exactly what a IB of a FCM does so a First loss funding If this was in equity space they will have to be licensed as broker dealer any way at the end of the day a very suspect business practices no wonder TRUE prop firms don't do all this , they genuinely give access to funds and don't charge a thing and hunt talent at own cost Ford or GE dont go to campuses and charges $100 for a "aptitude test" to get a job! because their core business is manufacturing not collecting "Test fees"
You mean you support " Pay for test and hope to get funded " type businesses! because real prop firms don't do that .
Most of them are prop firms that trade their own money. The evaluation takers are just not part of the prop team. The companies could consider them part of research and development. And on that note i wonder if i should put money gotten from the funded as prizes as that would reduce tax to the gov.
So if you have got money paid to you that is great .. tax wise is a diff issue depends upon jurisdiction does it not?,
Most of them are prop firms that trade their own money. The evaluation takers are just not part of the prop team. LOL Are you claiming that the evaluation Takers have nothing to do with the "so called Prop firm?
That's right. The prop firm has a main account from which each trader working for the firm manages an amount allocated to that trader. But the evaluation takers just play with sim accounts to show their skills and methods and got awarded for good performance. The firms benefit from learning the trading methods of the evaluation takers. The test fee is just an entry fee to have them judge. Those traders are not part of the prop trading, my opinion.
Yes, depending on where you live. In the USA, last year I reported as income earned from being an independent contractor and paid self-employment tax about 15 percent on top of the regular income tax. Of course I was just kidding and will still do the same for any future income. I am a good citizen. I love a chance to pay more taxes (once in a while).