Can you trade investor accounts with a Series 56

Maverick74 said:
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.
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8 yrs that all, I've gotten the same amount of time. With some recent exposure to prop, besides experience tells me nothing. P&L statements says it all, you don't need 8 yrs to succeed in this business.

I'm not being a dick with you, just CHILL OUT, as I stated earlier, your like a drama queen, lawsuits, please. When kitchens have to be remodelled, roof repairs or extra income for the holiday season, I have friends and family who give me money to trade for them. I treat their money as if it is my own.
 
jb3398 said:
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 !
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How are you hedging in your retail account? Let's use a dumb example. Say you are long AAPL in your prop account and short AAPL in your retail account. AAPL goes up 50%. But your prop firm blows up so that money is gone. Your retail account meanwhile is now down 50% on AAPL when you thought it was hedged. This sounds like a disaster in the making.

And again, a prop firm will not let you trade against your prop account with a retail account. Most prop firms are kosher with you having a retail account assuming it's long term investments and stuff like that in there. But they will get copies of your retail account statements and if they see you trading the same positions or even the same strategy, they will close your account. I'm just giving you a heads up. This is NOT a grey area.
 
1245 said:
That set up does not sound legal. Canadian law is very strict. Weird.
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They're a lot of prop firms that operate outside the US. It allows traders to use prop firms without having a license. However in the event the firms closes or shady business takes place, any resolutions will have to occur where the agency is licensed.

The 50/50 split was between my other investor and myself not with the firm.
 
Maverick74 said:
How are you hedging in your retail account? Let's use a dumb example. Say you are long AAPL in your prop account and short AAPL in your retail account. AAPL goes up 50%. But your prop firm blows up so that money is gone. Your retail account meanwhile is now down 50% on AAPL when you thought it was hedged. This sounds like a disaster in the making.

And again, a prop firm will not let you trade against your prop account with a retail account. Most prop firms are kosher with you having a retail account assuming it's long term investments and stuff like that in there. But they will get copies of your retail account statements and if they see you trading the same positions or even the same strategy, they will close your account. I'm just giving you a heads up. This is NOT a grey area.
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You've put in the time, now educate yourself on a decent strategy. Besides hedging can be conducted in numerous ways. Again your digging too deep, trying to find something out. Keep trading and stop projecting your losses and mistakes on others. It's not applicable to everyone.
 
So that is a private deal you made with someone to back you for your deposit at the prop firm? Does the prop firm know that you are not the source of funds? It might be possible to have an entity like an LLC be the limited partner at the prop firm where your LLC has more than one investor. That way, it would be above board.
 
1245 said:
So that is a private deal you made with someone to back you for your deposit at the prop firm? Does the prop firm know that you are not the source of funds? It might be possible to have an entity like an LLC be the limited partner at the prop firm where your LLC has more than one investor. That way, it would be above board.
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They're no longer in business and of course they knew we deposited the money together. Your reading too much into it, firms are not the stringent.
 
Let's get back to your original question. They answer is VERY simple. You can be a member of a regulated prop firm and have a person account, if they allow you. You must tell the retail brokers of your affiliations, get written permission from your CCO (normally in the form of a letter) and provide monthly statements to your prop firm.
 
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