Is it possible to set up own prop and borrow from banks?

To revisit this thread, what are the competent, reliable (good) clearing firms for a new BD to establish a relationship with. It seems that Penson caters its services toward the little guy, but who else is there for someone w/ less than 5MM to start? I know Bright uses GS and highly recommends them, but they won't look at someone this small. Also, must clear for both equities and futures.

Thx.
 
You know, I'll check to see who is out there these days. Can you give me an idea of how much capital you want to start with, and what you basic business plan is? I'll make some calls.

And, fWIW, it may make sense to do what others have done, and "piggyback" with us or another viable firm.

PM me if you like.

Don
 
If one can start his own LLC within a Prop firm then they can increase their leverage greater than 4:1.

If not a broker/dealer or exchange member no series 7 is needed.
 
Quote from Don Bright:

LOL, the last thing we do is "monitor" our traders methods. We had a guy in Holland, whom I never met, started trading, made over $3million in a couple of years, and I still have no idea what his trading plan consisted of.

Borrowing money to start a trading firm would likely be a tough route to go. You can, however, buy a Seat on the exchange, or join the NASD, and meet with a smaller Clearing firm (maybe Penson?), and see if they will clear you. You would need to hire a really (really) good Compliance Officer, but all this can be done.

FWIW,

Don
More...

Suppose I am in China and I never met you, what kind of qualification I need to be a member of your firm? Do I always need to pass Series 7 to join? (This is a hypothetical question since I am now at U.S but I am thinking going back to China soon).
 
Quote from cstfx:

To revisit this thread, what are the competent, reliable (good) clearing firms for a new BD to establish a relationship with. It seems that Penson caters its services toward the little guy, but who else is there for someone w/ less than 5MM to start? I know Bright uses GS and highly recommends them, but they won't look at someone this small. Also, must clear for both equities and futures.

Thx.
More...

www.NorthAmericanClearing.com
 
You must log in or register to reply here.
Back
Top