Legal Action against a prop arcade?

When you submit a capital contribution, your firm has LOTS of compliance issues to deal with, and holding capital for a dormant account is frowned upon when they have their audits.

In your post you mention you made the capital contribution "a few months ago after passing my Series 7." The SEC/FINRA monitors firms who engage in what's called "license parking." This is when a Series 7 is simply held at a firm to maintain active status, but no trading takes place. It's a no-no in the prop shop business.

If you didn't want to start trading until Jan 1, then the ideal situation was to file the paperwork in mid to late December, and wire the funds or send a check at that time, not a few months prior.

It does sound like the firm was doing its best to accommodate setting you up for an account, and perhaps there was either miscommunication between you and the firm, or like the op said, you did not properly review your operating agreement.
 
HungryMind1200 said:
I just wonder how challenging it will be to get my deposit back if I absolutely have to pull the plug on this...
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Your capital is subject to a lock up period by the firm for one year from the date your capital was submitted.

As the op said, you are not a customer, but rather a "Class B" member of the LLC, since a registered prop firm does not maintain customer accounts.

This has been discussed extensively on many threads on Elite Trader over the years. I suggest you view the firm's financials via SEC.gov, where you can read more about how the firm is structured, especially regarding their net capital requirements.
 
Thank you all for the insight. You guys brought up some very valid points. ScalperJoe, you were right on the money when you mentioned "license parking". This is the reason why my trading manager reprimanded me. I feel like a jerkoff for catching an attitude with him over it. I obviously have a lot to learn.

My account is online and I am actively trading. As far as I'm concerned, these guys went above and beyond for me.

And no, the thread is NOT bullsh!t. Why would I (or anyone for that matter), waste precious time by posting a fake story on the forum? There's nothing to be gained.
 
ScalperJoe said:
When you submit a capital contribution, your firm has LOTS of compliance issues to deal with, and holding capital for a dormant account is frowned upon when they have their audits.

In your post you mention you made the capital contribution "a few months ago after passing my Series 7." The SEC/FINRA monitors firms who engage in what's called "license parking." This is when a Series 7 is simply held at a firm to maintain active status, but no trading takes place. It's a no-no in the prop shop business.

If you didn't want to start trading until Jan 1, then the ideal situation was to file the paperwork in mid to late December, and wire the funds or send a check at that time, not a few months prior.

It does sound like the firm was doing its best to accommodate setting you up for an account, and perhaps there was either miscommunication between you and the firm, or like the op said, you did not properly review your operating agreement.
More...
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As low [or no ,so to speak]as interest rates are;
a non working account could be a liability to all except op.Even in a commercial bank a non working account for a certain number of years can result in losing 100 % of that account
 
I read through this thread, and guess it is T3, which have the longest contract to protect themself (rather than the member)... Hope you are trading well
 
You've touched on what I believe is the root cause of my challenges. I don't have a dedicated system. I wait for certain well-known patterns/setups, etc, and I trade them accordingly. I use simple indicators like trend lines, support, resistance - identify consolidation ranges and trade as the mark-up occurs (chop range is broken) , try to spot areas of consolidation, distribution, etc... I need a systematic approach so all thoughts and emotions are taken out of the equation. I intra-day trade, so I may be in a trade from 2 seconds (quick scalp) to two or more hours. I do not hold overnight, but I will in trade pre-market and AH if the opportunity is there.

I've read so many books and I've spoken to so many people on this forum and elsewhere. I am starting to doubt whether it is even possible to obtain consistency while intra-day trading. This is by far the most challenging venture that I've ever tried. I will not give up, but I've certainly lost some steam...

I also have my own challenges (fear, greed, hope) which I am continuing to work through...
 
HungryMind1200 said:
You've touched on what I believe is the root cause of my challenges. I don't have a dedicated system. I wait for certain well-known patterns/setups, etc, and I trade them accordingly. I use simple indicators like trend lines, support, resistance - identify consolidation ranges and trade as the mark-up occurs (chop range is broken) , try to spot areas of consolidation, distribution, etc... I need a systematic approach so all thoughts and emotions are taken out of the equation. I intra-day trade, so I may be in a trade from 2 seconds (quick scalp) to two or more hours. I do not hold overnight, but I will in trade pre-market and AH if the opportunity is there.

I've read so many books and I've spoken to so many people on this forum and elsewhere. I am starting to doubt whether it is even possible to obtain consistency while intra-day trading. This is by far the most challenging venture that I've ever tried. I will not give up, but I've certainly lost some steam...

I also have my own challenges (fear, greed, hope) which I am continuing to work through...
More...

Learning a system ( whether through reading, conversation or any other source) is not the same as making that system yours and trusting it. Trust comes through experience...
 
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