90% of the Prop firms ARE RETAIL ACCOUNTS.
That's why they have to conjure up something like Training Fees to take you money instead of doing it in the form of a risk deposit.
Most of these firms are simply 4 to 1 retail accounts that a group of traders share.
As a sub account at a firm like Keystone you are not protected in an event where the firm goes belly up.
I trade intra-day using a 4 to 1 retail account as most of the old school traders do...... following the 25k minimum balance to be a professional trader law. I was wrong in thinking that most of the traders here did the same which is the reason for this little back and forth going on.
Point is that if you trade your on 4 to 1 account intraday you're insured. If you trade at one of these sub llc groups, which I believe Keystone is, then your money isn't insured do to the fact that in reality you're not even trading under your own name and as far as the clearing firm knows it's one singular account under the firms name with other employees allowed to trade it.
And as far as the goldman thing goes..... hedge funds, pension funds, mutual funds are not usually leveraged 2 to 1 at most. In essence they are simply massive retail accounts. Lets not forget that people who aren't day trading don't use 20 to 1 leverage.
That's why they have to conjure up something like Training Fees to take you money instead of doing it in the form of a risk deposit.
Most of these firms are simply 4 to 1 retail accounts that a group of traders share.
As a sub account at a firm like Keystone you are not protected in an event where the firm goes belly up.
I trade intra-day using a 4 to 1 retail account as most of the old school traders do...... following the 25k minimum balance to be a professional trader law. I was wrong in thinking that most of the traders here did the same which is the reason for this little back and forth going on.
Point is that if you trade your on 4 to 1 account intraday you're insured. If you trade at one of these sub llc groups, which I believe Keystone is, then your money isn't insured do to the fact that in reality you're not even trading under your own name and as far as the clearing firm knows it's one singular account under the firms name with other employees allowed to trade it.
And as far as the goldman thing goes..... hedge funds, pension funds, mutual funds are not usually leveraged 2 to 1 at most. In essence they are simply massive retail accounts. Lets not forget that people who aren't day trading don't use 20 to 1 leverage.
