Trading Firm Capital vs. Sieres 7

Discussion in 'Prop Firms' started by jetmacrotrader, Mar 21, 2009.

  1. i have my series 7 license, but i am suspscious about joining some firms that tell me that i dont need to have a license b/c i would be trading there capital. Is this legally true?

    suppose if i did join a firm that does not require a license, and worst case scenario like tuco trading it was raided and shut down by the SEC. b/c i have a series 7, would they penalize or takeway my license for not being registered?

    T3 live trading firm says i dont need a license b/c i would be trading there capital and b/c they are a private equity trading hedge fund. so do other investment hedge fund traders in general have licenses?
  2. There are many firms that are totally legit that don't require a Series 7. I traded without one for a firm in Stamford, CT. Even many people in the hedge fund world don't have their Series 7. The certification is basically for the ability to deal with customers... whether you are suited to provide investment advice to them. It's especially needed for brokerage firms and the sell-side of the business.

    Also, I've heard that T3 is a very good place! You don't need a series 7 to trade their capital... like they said.
  3. cstfx


    The thing about Tuco was that they were operating as an unlicensed b/d, taking deposits from customers and charging mark-ups on every transaction. Private firms that don't take deposits right now are free to operate as they see fit since they don't have any "customers" that would worry the SEC and don't raise any flags.