Why frims are not allowed to take a risk deposit ?

Discussion in 'Prop Firms' started by hippietrader, Aug 11, 2009.

  1. Now they have gigantic training fees or non-refundable enrollment fees instead of the good old risk deposit.

    This rule was meant to protect traders?

    Now traders are screwed even more with these new structure.

    Risk deposits you get back if you don't screw up and lose the money you put in. With this new structure, you fees are gone forever even if you never lose a dime of the firm's money.

    This no deal for new traders.
  2. bpcnabe


    These firms cannot take deposits because then they would be illegally operating as a non licensed broker dealer and the SEC will come down hard on them for doing so. Do a search here about a soap opera more than a year ago concerning Tuco Trading and how the SEC drove this non-licensed b/d out of business for doing what you want them to do.

    If it is your desire to deposit money that you could get back if/when you leave, then you need to find a firm that is licensed as either a b/d or licensed thru a b/d to accept deposits. In most cases, this will also require you to get licensed too, but as someone mentioned CBSX firms may not require such licensing.

    If you are not willing to go this route, then you are SOL.
  3. Now they take an enormous non-refundable enrollment/training fee instead of a refundable risk-deposit.

    The trader is out of many thousands at the onset!

    Government interference here hurt little people.
  4. bpcnabe


    Why not just go get liensed an avoid this bs? It is not that hard a test that some study can't overcome. You get your license, join a registered firm, and deposit your money.

    I know these rules appear unfair, but these are the rules. Just do it properly and it is not an issue.
  5. I got my series 3. Not allow to take Seris 7 w/o a sponsor.

    In any case, my energy is now more focus on learning to trade better.
  6. ArcticTrader

    ArcticTrader Guest

    You could try trading futures as well. Great leverage, low commissions relative to the size of the moves, and you get to keep all your profits.
  7. Exactly what I learning to do. Those with limited capital are forced to trade more risky instruments like futures, or to hold a stock position overnight - which means greater risk.

    Well so be it, I will just stay on simulator longer to learn the game better.
  8. tombol


    Do foreigners also need licensing ?
  9. Go with a canadian firm.
  10. how does an American go with a Canadian firm w/o a US branch?

    There are some good firms that would consider people from many countries except Americas due to the crazy tax regulations that apply to accounts held by Americans.
    #10     Aug 13, 2009