Can a US Citizen go offshore (legal, IRS etc)? Is anything needed to do so? Or is there just more risk putting youir money offshore in terms of risk deposit.
From my understanding a US citizen can "go offshore" by setting up an IBC (International Business Corporation), which may require hiring an attorney to file the necessary legal documents in the respective country. In terms of risk, there is no prop firm that is without risk, domestic or offshore, since the funds are not protected by SIPC like a retail account. However, the domestic firms have oversight through their SRO, so at least you know where they stand financially, and they have to follow many rules regarding daily net capital requirements.
ScalperJoe, I want to add that even SIPC insurance has 99 years to pay you back so there is always risk involved in trading markets. Just look at the soviet union. Even megapowers fall and markets collapse. Always understand the risk you're getting into when trading. As for Broad Street, They're out of the CBSX business, doing retail stuff from what I understand they started a hedge fund with a few traders and got out of CBSX.
This was all over the 56?? Seriously? First three traders I knew failed because the study guide was crap, but I haven't seen anyone fail it in the past 30 traders. Everyone is now getting in the 80's. If the traders aren't passing the test, they are definitely not the smartest bunch. Pain in the ass to study, but no big deal. Take it, pass it and move on. Most prop shops have their own study guides and test questions now just from feedback from their traders. Our new traders are taking a week to get materials and pass the test so that seems strange a firm would shut down it's prop dept. over this test.
Here comes the infamous "check is in mail" moment. On Monday 8/20/12, Broad Street made my final disbursement and told me it should arrive shortly. Today is Friday 8/24/12 and nothing is in my mailbox. I'll wait until Tuesday til I start having concerns about my money. Any other former Broad Street traders facing the same situation as me?
It takes awhile after a firm files its BDW (broker dealer withdrawal) notice, as they have to comply with a final audit by their SRO. So it is more likely to get your funds returned if they cease operations. Many of the former Team Trading clients are still waiting, not to mention Element's traders. This is why there are many warning posts to do business only with registered firms.
Glad to see it all worked out. This is why you should stick with a registered BD. There will always be the "Madoff" situations but overall a regulated entity is better than these fly by night unregistered LLCs.
I totally agree with you. At first I was annoyed with the fees I had to pay (U-4 and U-5 filing, FBI background/fingerprint fee, CBOE filing, Series 56 test, etc), but because of all this, I at least had SRO oversight with the CBSX and the SEC to kinda watching my back (if you know what I mean).