I'm having a rough time distinguishing the actuality of a prop firm. I know a prop firm can not have a broker-dealer relation with their traders, however don't most firms monitor their traders and limit their abilities to trades? IMO this violates the SEC's loose definition of a broker/dealer "persons that operate or control electronic or other platforms to trade securities;" and "persons that effect securities transactions for the account of others for a fee, even when those other people are friends or family members;" So in order to have this loose defined relationship as broker/dealer a firm must have one person licensed? (Series 7) If the above is true wouldn't they be considered a retail firm? Just really confused on the required to own/trade in regards to Prop operations