Filtering out the shady firms

B

bobocheez

Hi,

I've been browsing the forums and Google to try to find a good firm to get into, but there's a lot of incomplete information which I'm having a hard time figuring out.

I've been paper day trading, as well as real trading with an online broker. Strategy is solid intraday, scales pretty well into long term trades, but returns are much lower.

So the question is, are there any firms which you are currently trading for or have traded for in the past, which allow you to make a deposit and start trading very quickly. There are reviews out there, but you frequently find that people have not actually worked with the firm and/or are paid to post.

Preferably
- Remote trading (US located though)
- $5k initial deposit to cover their risk
- levarage/trading fee/profit share is irrelevant
- I don't have a series56, and would prefer not to have to go through that if it's possible, but will do it it it's required. (I have read that you can get around this as well, but not sure about it's accuracy)

If you could point me in the right direction or have a suggestion, your advice would be greatly appreciated.

Thanks
 
Honestly man, the cost of regulations make the 5k accounts unprofitable to service. The prop equity model is pretty much over. The good ones that are left (Bright, Echo) are basically more like professional brokerage accounts with portfolio margin.
 
I know I mentioned US based firms, but what about offshore?

Some companies that look reputable have disclaimers at the bottom saying not intended for US residents. Does this mean they won't allow US residents, or is this just legal jargon that you can get around?
 
If a firm is based in the US and requires you to make a risk deposit, they must be an SEC registered broker dealer. Be careful of firms not registered, they are being shut down by the SEC. Be careful of firms saying you are buying education....everyone knows they are just trying to get around registering and the SEC knows that as well.

Some firms require a Series 56 and some require a Series 7, it all depends on which exchange the belong to. Check the forums here on Elite Trader to find the best firme for you. Stick with firms that have been around for awhile and people have positive things to say about them.

I went through the same thing a couple years ago and chose to take the Series 56 and trade through JC Trading Group. I also seriously considered Bright but his rates were too high and required to large of a deposit. Overall I have had a great experience with JC and highly recommend them.
 
Quote from bobocheez:

I know I mentioned US based firms, but what about offshore?

Some companies that look reputable have disclaimers at the bottom saying not intended for US residents. Does this mean they won't allow US residents, or is this just legal jargon that you can get around?
More...

Offshore firms that accept US traders operate in a grey area. They do hide behind a disclaimer that they do not solicit US traders. How far this goes is anyone's guess but I wasn't about to risk it with my hard earned money.

The 56 wasn't that bad. I studied a few weeks and the material isn't difficult at all. Get the PassPerfect book and you should be fine. Also, JC Trading Group has a live online Series 56 class every month for review purposes.
 
Thanks for all of your responses. As I've been reading on this forum, others, and your own replies, it looks like wannabe day traders have 4 options.

1. Trade options...
2. Join a prop firm & take series56 or 7
3. Swing trade/long term until you reach $25k
4. Offshore trading
 
Here's another one. What about the London Stock Exchange?

Anyone have experience trading a foreign market with a foreign company from the US (as a US citizen)?

The PDT rule is created by FINRA which is the US regulatory body. I'm going over the LSE rules, but a Google search doesn't yield anything. Unless I'm using incorrect terminology of course.
 
I'm not sure what you mean by "look reputable".

Quote from bobocheez:

I know I mentioned US based firms, but what about offshore?

Some companies that look reputable


More...
 
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