would this be technically legal in the eyes of the SEC

Discussion in 'Prop Firms' started by Sky123987, Feb 7, 2010.

  1. Are the following 2 ways legal in the eyes of the SEC.


    1)You have a large account at a retail brokerage, you hire traders to trade the firms capital with zero capital contribution. You charge a markup on commissions.


    2)You have a large account at a retail brokerage, you hire traders to trade the firms capital with zero capital contribution. You DO NOT charge a markup on commissions, and take a percentage of profits.


    Thanks
     
  2. tomk96

    tomk96

    if you have that big of an account, you would probably just set up directly with a clearing firm. yes it is legal.