I've called a few Prop Firms...

really? so passing the (useless) S7 exam proves you're not a dummy thief or criminal?

The reason they require a (again, useless) s7 or any other regulatory exam has to do with whom they are registered with, has nothing to with daytrading knowledge

Quote from kentraderstar:

take the exam. the reason these prop firms require series 7 to make sure you trade with ethics and not trade like nick leeson who brought down baring bank during the 90s.

they don't want dummies, thieves, and criminal.
More...
 
Quote from rosy2:

what about advantage, IB, or thinkorswim? it seems to me you are looking for a broker since you are putting up the capital. but what people see when you are only putting up 5k is a guy with no clue.
More...

thinkorswim has good analytics to trade volatility or take directional plays, they also offer margin so you can try to build monsters each expiration
 
these aren't prop firms you still have to pay $10,000 'contribution'

these firms have no risk. they try to make you think you are working for them..they are just business partners...nothing more. you are the customer they are the broker,,,there is no employee or boss relationship with these prop firms that require 10k deposit..and is not regulated.


QUOTE]Quote from bigpapi:

jerks [/QUOTE]
 
Quote from WinstonTJ:

Look at his OP - he's looking to put down $5-$10k so no PDT and at an average of $40/share 300-400 shs/trade means he needs $12-$16k in capital.

Reg-T would work (and probably be better IMO) but he's not over $25k.
More...

Actually, "MoneyMatthew" is looking for a registered prop firm, as quoted here:

"If any of you could recommend a CBOE/CBSX registered firm I would appreciate it. My main requirement is that the minimum deposit be $5K or lower."

To clarify, the "PDT" rule I believe is for retail accounts. When you join a CBSX firm, you're not a retail customer, you become a "Class B" member and the firm gives you access to their buying power from the clearing firm. 10x is standard, 20x is also common, or even more depending on what capital contribution you are making and your trading style.

So with $5k you could get $50k in buying power, which is plenty for doing 300 share lots of a $40 stock, for example.

Here's a link found on many threads regarding prop firms, compiled in 2007: some are out of business or merged, some are NOT registered, and some respectable ones are still around, such as the one mentioned in the op (Avatar):

http://www.tradersnarrative.com/list-of-proprietary-trading-firms-735.html

The firm hedges your losses through your capital contribution, and will earn a mark-up on commissions REGARDLESS if you win or lose.

If you want to take even a deeper look, go to the SEC.gov website and search the database for their focus reports (usually for the prior year, so things may have changed). From my own research and my personal opinion, the ones that require a S7 are better capitalized.

There are other factors to consider besides just the commission.

Best of luck...
 
Quote from WinstonTJ:

FWIW, CBOE/CBSX is going to start requiring traders to take an exam/test similar to the Series7 shortly - in the Feb/March timeframe (Feb-March 2011).
More...

It seems so, here is the SEC.gov's document regarding this:

http://www.sec.gov/rules/sro/cboe/2010/34-62977.pdf

And here's the paragraph that relates to WinstonTJ's post:

"CBOE is considering various alternatives for an appropriate qualification examination(s) for Trading Permit Holders and associated persons required to register under proposed Rule
3.6A(a). These alternatives include, but are not limited to, the successful completion of CBOE’s Trading Permit Holder Qualification Examination or the development of a new qualification examination."

Footnote 10 in the above link has more details, and suggests that if they don't come up with a new exam, they may require the Series 7.
 
bigpapi


Registered: Dec 2009
Posts: 299


01-02-11 10:51 PM

Quote from MoneyMatthew:


I first spoke with JCTrading Group. They made is clear to me that $10K is the minimum deposit or excuse me "capital contribution".

This runs counter to a few of the posts I have read on here. I could hear the energy leave the conversation the second I told them that I dont plan on trading more than 3 or 4 lots per day (300 or 400 Shares) with only 1 trade per day.



jerks

what are your reasons for calling them jerks?
 
I've had many people recommend Avatar Securities to me. I'm going to sit on the sidelines until CBSX/CBOE decides what type of test it is going to put into place.

I'm 90% sure I'm going with Avatar. I still need to call them but I like what I have heard about them so far.

http://avatarsecurities.com/


Picking a prop firm is tough. The landscape is in constant flux recently so I'm sure the same questions get asked over and over again. Even with proper research/DD it can still be a tough search.

Thanks for helping me out with the responses. I need to be a fulltime trader no matter what. I dont care if I have to live under a frikin bridge. I'm yelling freedom like Braveheart! lol....

I'm going into Ramen Noodles mode from here on out. To those of you already in the game be glad. Its the greatest job in the world.
 
You must log in or register to reply here.
Back
Top