There are a few recent threads about US traders overpaying and getting their funds stolen by offshore firms. So, general question for US traders trading at offshore companies: Why don't you just take the 56 and trade at a real, legit, regulated firm and get reasonable rates: Possible choices: 1. Don't think you can pass 2. Too lazy to study 3. Can't afford the $300 FINRA charges 4. Have a felony so can't get registered 5. Don't want to get fingerprinted because you will be on the government's radar 6. Don't want to lock up your deposit for 12 months Are there any I'm missing?
How much did you make in 2013 trading prop? Two years ago there were dozens of choices. Even Echo is gone. Your multiple choice is rather silly. The industry is on life-support with algos stepping inside your order and vola down. The model is unprofitable from the top-down.
I think this goes very close to #1. But I think some people might think they would not be accepted by a firm, for whatever reason.. not enough money to trade (isn't that why guys go prop.. for more leverage.. ok some say it's to learn ), maybe they feel they lack qualifications/resume/education.. so then they go offshore? I agree with you. It's not smart. Some might think it's harmless. But imagine they did do well and come under radar, then they have those days which they traded without a license. We really need to watch what we do today. It takes shape into tomorrow.
Not that it's any of your business but I easily supported myself being a full time day trader. And that is with a mortgage, student loan, car payment, and plenty left over for a decent lifestyle. Who cares if there is 1 choice or 20. The bottom line is there are choices but the only reason some people don't trade at them is because they have to take the Series 56. That is why these offshore ones keep popping up and stealing people's money and ripping them off.
I think you are right....which is a shame because it's not even that hard. It's only 100 questions. Plus, JC has a live online 56 review class which they hold regularly.
I think the reason is #2...too lazy. It's the same reason most traders fail....not enough time spent learning and practicing. Beginning traders should be reading books, paper trading, looking at charts, etc. Instead, most just wake up a few minutes before the market opens and start to trade. Then they call it a day 5 minutes after the market closes.