WinItAll, Thanks so much for the information but each answer creates more doors so now I wonder how you can have an account directly with GS when their website says they only take broker-dealers, mutual funds and hedge funds? Are you with a subsidiary or if not, can you possibly send a link that indicates how a regular Joe with $25k can open an account that clears directly through them as I can't find anything about a retail department, which with just 4X leverage, that is what that would be, right? What are the commission rates with them which I imagine is volume dependent and I know you said you use them only for swing trades and info so I am guessing not good? Correct me if I am wrong but from reading posts on here, the people go with Bright because they are pairtrading friendly, are more stable than a lot of the new "props" where a Tuco-esque meltdown could occur, are "negotiable" on their commissions for the big players and they clear through GS with its Redi platform. You have all of these benefits with the exception of the "prop" leverage which is probably good. Anyway, I know I am like a kid with the perpetual "why" question but hey, this is a forum, after all and you seem filled with knowledge and like to share
Myshkin, My acct with GS is a little more complicated than what you'd be looking to do...... I have a relatively small fund that I use them for and without going into more detail I do fit the requirements but that's just for long term buy and hold trading. When I was talking about going 4 to 1 I was suggesting you go straight thru a self clearing day trading firm. For example, a hold brother or assent. This way you eliminate the middle man and make sure that your money is with a safe house.
WinItAll, Thanks a lot for the information. I will look into Assent and Hold later in the year to possibly start the year off fresh somewhere new. A buddy of mine had problems with an Assent sub-group a few years back but again, they were just clearing through Assent so it should be OK. Best of luck and thanks again
Many advertise in Monster.com and other Help Wanted listings when what they are trying to do is selling their outrageous "trading education" (usually 5k to 12k) to you. It is very deceptive. It is like employer that telling a job applicant that they get the job only after paying many thousands to the employer in training and other fees. By the way, it is a commission-only job. It is a great business model. Very little downside for such a prop. Bundle together the fees the suckers paid put it in a basket called "firm capital".
Hey, If you're going to use hold, assent or any other shop that does most of their business clearing short term trading then make sure you go directly thru the clearing house and not with a sub group that uses the clearing house. Not only are you paying more but your money also is not as safe. Also, this way no one else has access to your capital like they would in a sub group.