He is not saying you can't have a retail account. What he is saying is that you can't trade the same products in the same account at the same time.
Can you trade investor accounts with a Series 56
- Thread starter jb3398
- Start date
Ya, like I said, it all depends on the firm and the compliance officer's discretion regarding outside accounts.
With the 56, you can trade the capital of the firm you are trading with. Raising $ from investors requires you act as an investment advisor. You would basically be regulated the way hedge-funds are when they raise $$. The law is different somewhat from state-to-state though.
And if you borrow the money from the investor? Then the money received is legally yours as it is a regular loan with a variable rate written in contract. That monthly rate on the loan you link to your monthly performance minus your fees.
Good to know thanks a lot bln (is that a user name or a symbol)
That won't work either. You guys are just not understanding this. When you join a prop firm, you are becoming a partner. Not a customer, not a client, not a friend. A partner. The reason prop firms don't want you involved in this, is because when the investor sues you, and he will in fact sue you, he will actually sue the prop firm and all the partners of said prop firm. Prop firms realize they can't regulate the shit you are about to pull with this investor and they don't want that liability. So let me say this one more time: It's NOT going to happen.
Maverick74 the investor is going to sue !!!
It's not going to happen !!!
Who the hell died and left you in charge chill out .
I refuse to elaborate on your comments other than what was previously stated. Stop projecting your shortcomings on other people. I trade accounts now for friends and receive capital contributions with positive results.
It's not going to happen !!!
Who the hell died and left you in charge chill out .
I refuse to elaborate on your comments other than what was previously stated. Stop projecting your shortcomings on other people. I trade accounts now for friends and receive capital contributions with positive results.
What are you going to tell your investor if the prop firm blows up and 100% of his capital is gone? Do you want me to list ALL the prop firms that went belly up. It will take several pages. No, I don't think you have thought this through.
And btw, being a dick towards me is not the right move. I'm probably the only guy on this thread that has DONE all these things you are asking about. This was my business for 8 years.
No you haven't thought it thru, I worked for one BSI which was ran by Angelo. Any investor money I put up in a prop will be hedged in retail. Speaking of which when I traded with BSI (licensed in Canada) I had a partner. Our profits were split 50/50 and the only reason why he went into business with me because he knew I could withdraw his contribution from my retail account.
For the record my primary accounts are retail, when my prop balances gets low, it will get replenished from retail accountS. You've mistaken me for an amateur, someone who lacks experience, don't let my inquires mislead you !