Types of Account

Discussion in 'Prop Firms' started by theboy, Jun 12, 2012.

  1. theboy



    My wife works at a broker dealer and we have the usual regulation in our account. (ie, can only long, have to hold 30 days, etc etc). If I were to join one of the prop firms, like echo, would my account subject to those restrictions? Separately, if I were to go to the IB retail route, what type of account would I need there? Do I need to set up a LLC, etc?

  2. It totally depends on your wife's agreement with the firm. Some firms will only employ if she agrees that no member of her household can hold an outside brokerage account. You have to check what the guidelines are for her.

    You can't trade prop under LLCs anymore. It's all SEC registration and fingerprints now. The firms are also all required to obtain copies of any outside brokerage statements/employment information from your household. All that stuff is in the form U4 so you can check there for more on what info the firms are required to obtain.

    other than that your choice is opening an account with a foreign broker-dealer. You run the risk of breaking any laws that may prohibit you from trading, but technically speaking, many foreign firms do not have those restrictions on them so they can accept you legally, putting the risk on you to be compliant as I understand it.