Regulation doesn't mean anything in terms of bankruptcy, fraud, etc, etc. Lehman brothers was full of Series crooks and Madoff, etc, etc. I'd rather have a system that works well for me, a decent reputation, cheap rates, and accessibility to my funds so that I can withdrawal periodically to reduce risk exposure. No firm "regulated or unregulated" should be considered 100% safe.
but I got a better offer for $6.95/share. The best they could do was a max ticket of $12/trade (I was looking for a flat rate per trade setup). The maintenance fee + software fee + ecn fee = too high for my style of trading. It wouldn't be worth it to trade with them unless they could compete with the other firms' prices.
Ha!! You must not know what a "red flag" is!! This firm has the same structure that Tuco had. And Tuco got shut down by the SEC. Even worse, they are openly advertising the exact same things that the SEC said were "no-no's". You can't simply put this on the bottom of your website and think that everything is good because you warned everyone: "WorldWide Trading Capital is not a registered broker-dealer and neither benefits from, nor receives commission dollars related to trading accounts. WTC works in coordination with private capital groups that provide licensed and non-licensed clients with access to sub-contracted trading services. Our firm and our network affiliates strongly recommend that all clients fully read and acknowledge all risk disclosure statements available on our site and our affiliate websites prior to engaging in any live trading activity, and acquire a solid understanding of the risks inherent in active "day" trading." This is enough to get them shut down: "Q: Is my risk capital secure? Where is my risk capital deposit and accrued profits held? Trader risk capital is deposited with our affiliate private equity trading firm. No funds are held by or sent to WTC. Original risk capital is held in the firm's corporate checking account as risk capital. All accrued net trading profits remain in the group's master trading account with SIPC coverage. Click here for information pertaining to SIPC insurance." They are clearly stating that your deposit is SIPC insured. IT IS NOT! This is a lie. The master account might be SIPC insured but your "sub account" is not!! If you don't believe me please call the SIPC and give them the link to WTC. Tell them you have an "interest in an LLC as a subcontractor" and you want to know if YOU have SIPC insurance. http://www.sipc.org/contact.cfm Plus, they don't pay you to add liquidity!! Are you kidding me? And they mark up when you take liquidity!! What a joke! And a monthly maintenance fee and an annual reconciliation fee! Theres no way Look, trade there if you want, its a free county....but there are better choices that are legitimate registered BD's and have full ECN payouts.
Very good reply! Although I am not sure about WTC...it does not stirke me as a good operationg place with good reputation. But on the other hand, someone mention CY group, and they have been around for a couple of years. I hear nothing but good stuff from that firm! Eventually it's up to you to take that risk! But the reviews, help you make that decision!