You guys all realize it is illegal / uncompliant to take give a 99% payout as a CBSX firm? October 1st, 2010 release from the CBOE regulation department. http://www.cbsx.com/publish/RegCir/RG10-101.pdf "A split which provides all or virtually all of the P & L to the trader is likely a red flag that the account is a customer account." If you guys don't think all = 100% and 99% = 'virtually all' then don't worry about it. Unfortunately, it seems pretty clear to every other Broker Dealer out there and they don't do that payout. If you are willing to take chances on firms who will cut corners, you might as well go to some firm that isn't a broker dealer at all and isn't going to charge you a $70 per month fee for compliance and risk management. Still no one has shed light on the firm owner's capital or if the firm is run fully off owner's capital.
Do you even trade....? WTSPTG, LLC is a registered broker-dealer and a member of SEC, (CBSX). CTG trades through WTS. Your checks, K1, etc all come from WTS. Deposits are held at Wedbush under WTS. Quit spreading useless slander. How many times are you going to post this same freaking post. And it is not illegal to give 99%. I give you that it probably should be 95% but REG 18 uses vague language. All they would do is tell the firm to lower the payout. It would not shut the firm down. These firms do their due diligence to comply with industry rules. Why would they require SEC licenses, U4 background checks, etc and they blatantly ignore REG 18. I just read the statement...Have you read the CBSX statement? If a firm does a background check. registers the traders with FINRA, locks up the capital for a year, declares them as class b members, etc etc etc then IT IS IN COMPLIANCE.... this shows that the traders are members and not customers.....
You disagree with the following statement? All = 100% Virtually All = 99% You're just turning a blind eye. That isn't vague.
NOBODY does everything 100% by the books, SgtSlotter. They may eventually enforce a 80/20 split or something along those lines, but the truth is the regulators don't give a rats ass about who gets paid what, as long as there is accountability. MasterTrader is right in that, if you're looking for 100% full compliance, you're a tool. Some firms even offer 100% payout. If the rules change, everybody is notified in advance. It takes a pretty serious investment to open a broker-dealer or JBO. Go out and start your own BD or JBO and do better.
who would not want to be paid out 99% of profits There is no sec rule on what % payout is allowed or not !! if there is a change then it may affect most prop firms. until then don't worry about what may or may not be legal real traders make money & don't worry about bs like this payout percentage does not have any bearing on if a firm is legit it's all legal now and with the cboe it may be frowned upon . who cares
If they pay 99%, where do they make their money? Does anyone know what kind of fees are they charging on execution, clearing & ECN's?
they charge about .001-.005 per share last time checked depending on volume. they also have some scalping program for 30 cents per 1k share... they make their money like all other broker-dealers, on commissions. Most pros want to keep as much profits as possible, so 99% is a good deal. Remember, if there is a 10% split, it's likely they will take profits on months there is, but won't split the loses on losing months so the higher the payout the better. i dont think their rates are anything special but they have awesome customer service. most prop firms have 0 customer service staff, so it's good to know ctg has a few live staff always on the line. it's a bitch getting these prop firms to pick up the phone sometimes
Refer to the FINRA release for clarification: http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p121247.pdf "if a firm has actual notice that the sub-accounts of a master account have different beneficial ownership (but does not know the identities of the beneficial owners) or the firm is privy to facts and/or circumstances that would reasonably raise the issue as to whether the sub-accounts, in fact, may have separate beneficial owners (and therefore is on âinquiry noticeâ), then the firm must inquire further and satisfy itself as to the beneficial ownership of each such sub-account." The issue of "customer account" relates to the IDENTITY OF THE BENEFICIAL OWNER of the account. At a prop firm, the trader is a "member" with trading privileges and payouts, and the identity of each sub-account is fully known by the firm (hence all the paperwork, DOJ background, etc). I believe FINRA's interpretation will override the CBOE's interpretations of maximum payouts, especially if there is no dispute regarding the identity and beneficial ownership of the sub-account. By "Every other broker dealer" are you only including CBSX member firms? Echotrade is on the PHLX, and pays 100%. This issue of maximum payouts has been around awhile, but the only definitive posts to my recollection occurred when Bright Trading switched from a 100% payout model to an 80/20 split. Besides, why would any prop trader ever complain about getting 99%, that would be just plain dumb. If it changes due to further regulations, then so be it.