CBSX and FINRA Registration

[Don Bright]

Quote from VinMan:

Are there international prop firms that do not require the registration? I'm probably somewhat of a unique case being someone that has the license but needs to trade without registration, more of a retail setup with my firm's OK and receiving dupes for compliance.

That would be easier than dual registration...if it exists.

Sure, virtually all of our traders have retail accounts...set up just as you noted, with dupes to compliance.

Don

 

[VinMan]

Don thank you for your response. What would be the differences between a retail account and otherwise? Leverage? Deposit? Fees?

Your response is appreciated.

I can have a retail account anywhere with dupes as long as I disclose it.

 

[Don Bright]

Quote from VinMan:

Don thank you for your response. What would be the differences between a retail account and otherwise? Leverage? Deposit? Fees?

Your response is appreciated.

I can have a retail account anywhere with dupes as long as I disclose it.

Retail accounts have all the retail restriction (PDT, margin, wash sales, matching trades etc.). Vs. Professional without those limits.

If you have $25K then there are obvious benefits to going pro. If you have a $million or two, then then you can overcome some of those restrictions.

Don

 

[hitnrun]

don

most of your traders have the choice to hold overnight positions right?

so why would many of them have retail accounts?

For trading stocks or other asset classes?

 

[rmorse]

Quote from hitnrun:

don

most of your traders have the choice to hold overnight positions right?

so why would many of them have retail accounts?

For trading stocks or other asset classes?

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Interesting that Non Broker Dealer accounts are called Retail here. So a $200MM hedge fund would be called "Retail" because their not a BD.

Customer accounts have some advantages. They are segregated customer accounts protected by SIPC, no lock up period, 100% your account. So you receive 100% control, 100% of profits and 100% of losses. At some PROP/JBOs you have to give up 20% to 30% of your profits, but your covering 100% of your losses. Also, for option traders, exchange fees are MUCH lower for customers. And, you don't have to be registered, licensed and regulated by a Broker Dealer.

If you can't fund a Customer Portfolio Margin account, most traders are better off with a Prop Firm. If you can, you have the choice.

Bob