Looking for a prop firm for U.S. equities

[traderjo]

Do you want to deal with a firm that cannot keep its website up?

that could be a red flag.. but lets see what the OP says!
It is not clear if OP is able and willing to to join 1st second or 3rd Kind of prop firm as described by Robert previously
For first loss , that means sending some money first to this firm...if OP is a Indian resident then he/she is not allowed by RBI/SEBI to trade overseas leveraged product , but there are many Prop firms who have "Trading offices" in India where local trading talent is sourced in a cost effective way and the local staff is perhaps paid a salary + performance bonus so a straight forward KPO operation ( knowledge process outsourcing) so no RBI /SEBi issues
I believe Futures first and Capstone! but they are futures trading firms I think, perhaps not Equity firms.
There are some who claim to be in Canada and take remote global traders but something sounds fishy ( AKA Swift !)

 

[seanyboy]

What does anyone know about Hold Brothers...good or bad?

 

[IndependentTrader]

Your pay is in the form of a K1...you are a registered person and will be required to take the Series 57.

I understand the registration/Series 57 would have to be in the name of the trader as an individual. But for tax purposes, is it possible to ask the JBO to attribute P&L to an ENTITY, such as an LLC? Thanks to anyone who might answer this!

 

[Proptrader23]

I understand the registration/Series 57 would have to be in the name of the trader as an individual. But for tax purposes, is it possible to ask the JBO to attribute P&L to an ENTITY, such as an LLC? Thanks to anyone who might answer this!

Yeah, it's very common for traders to do that.

 

[Robert Morse]

I understand the registration/Series 57 would have to be in the name of the trader as an individual. But for tax purposes, is it possible to ask the JBO to attribute P&L to an ENTITY, such as an LLC? Thanks to anyone who might answer this!

I would say yes, but you have to ask that BD. What value would that provide you?

 

[IndependentTrader]

What value would that provide you?

An entity might be able to deduct relevant expenses. To the extent more than one trader/person has contributed to the IP behind the trading strategy, the LLC entity might be able to more equitably ascribe taxable income between members.

 

[Robert Morse]

An entity might be able to deduct relevant expenses. To the extent more than one trader/person has contributed to the IP behind the trading strategy, the LLC entity might be able to more equitably ascribe taxable income between members.

But your expenses from the Prop business (e.g. interest, software, market data etc) should be part of your K1 as they are expenses of the Prop BD that are removed from your P/L.

 

[IndependentTrader]

But your expenses from the Prop business (e.g. interest, software, market data etc) should be part of your K1 as they are expenses of the Prop BD that are removed from your P/L.

That's good to know. How about interest on the original equity if some of that was borrowed by the trader(s). And what if the prop business employs a programmer on the side who receives a salary that needs to be deducted. That might not be on the K1

 

[Robert Morse]

That's good to know. How about interest on the original equity if some of that was borrowed by the trader(s). And what if the prop business employs a programmer on the side who receives a salary that needs to be deducted. That might not be on the K1

I'm only guessing when you say Prop firm that you are talking about a JBO style BD. If not, tell us. In that business, you are a trader and Capital partner. Your funds get added to firm capital of a regulated BD. Your trading account is NOT your account. It is a firm account to track your P/L where your deposit is first loss. Any expenses of the firm are paid by the firm and the hit your P/L with any charges your contract says you are responsible for.

Are you sure you want to join a prop firm? GIve me a call tomorrow if you want to chat.

 

[IndependentTrader]

Are you sure you want to join a prop firm? GIve me a call tomorrow if you want to chat.

OK. Will do. Thank you.