Noob to Prop Trading with a Question about Broad Street Trading

Quote from Av8rdan:

Don I guess I read this forum wrong. It seemed like a place where an admitted rookie could go to communicate with some professionals about how to get good information on trading. Instead, Most replies like yours have been snarky and sarcastic like you have to prove a point to a noob. I already know five grand is not enough to start trading but thank you for making fun of my legit question. The fact that you also failed to reply to an email I sent you asking about your firm demonstrates arrogance and this "give my 7yo grandkid" crap is more of the same. Sorry to have bothered you superstars on here with a legit question about Broad Street Trading. Would it have killed you to you provide a legit reply?
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As I said, and I'm sorry if you mis interpreted my response... all tongue in cheek my friend, seriously. Most poster know me pretty well, and "snarky" is not my intent.

We often get guys who are really trying to yank our chains.... and I was just playing around as well.

The idea of getting some firm or person to pay you enough to live in NYC is really tough. FNYS perhaps, and good people, but they hire so few people each year, almost never going to happen.

Perhaps check out Chicago, check Maverick74's post about the subject.....

All the best,

Don
 
Thanks for the polite and decent reply, Don. Yes I will thicken my skin. Unless people like SteveNYC post the crap like he posted above yours. He must exist just to hurl insults. Steve, I might be missing a brain, but you my friend have zero class. I was asking a legit question.
 
you should only consider a 56 or 7 licensed prop firm

cbsx registered firms that require the 56 license , most choices

firms overseas or not licensed , your rolling the dice on with your money being safe


I would say bright but they require 20k & your first born to get in the door Lol.
 
Quote from Av8rdan:

Unless people like SteveNYC post the crap like he posted above yours. He must exist just to hurl insults. Steve, I might be missing a brain, but you my friend have zero class. I was asking a legit question.
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What's the point in having class to classless people?
 
Quote from Av8rdan:

I am just now starting to do some due diligence on a possible prop trading firm I would like to use, Broad Street Trading. I see decent reviews, and the person who I've been communicating with via email has explained everything pretty well so far.

Here's my problem. Being new to this type of trading, it just sounds too good to be true. I give them $5,000 and they let me trade 10-to-1, so I have $45,000 of THEIR money to trade with. That sounds fantastic, but they say that even if I lose more than the $5,000, I do not owe them the money lost above that amount. But I also get to keep 100% of the net profits...again, sounds too good to be true. How to these firms make their money? I can understand a 70/30 split on profits or something, but they claim to pay 100% of net profits. Please....what am I missing?

I would just like to communicate with anyone currently using this firm, and give me a really honest review. Not about if I will make money, that's my worry, but how legit this company is, if they will be here a year from now, if this kind of trading (without a Series 7 license) is legal, etc.

Also, if anyone has a referral to a better non-Series 7 prop firm, I am all ears.
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When you join a prop firm, you're making a "capital contribution" which becomes firm capital. The prop uses it for net capital requirements at their clearing firm, and give you buying power that far exceeds retail pattern day trader Reg T margin (which is capped at 4 to 1 for customer accounts). This is the main benefit of trading prop vs. retail.

If a contract states that your max loss is your net capital, then yes, it's possible that you won't owe any excess loss to the firm. However this is usually an exception, not the norm. Also, firms have risk parameters to ensure that you won't "blow up" your account in one trade, such as having max daily drawdowns. Remember, the first $5,000 of losses are YOURS, not theirs.

Props make money through mark ups on your commissions, and profit splits. Usually, 100% payouts are for customer accounts (not prop accounts).

I agree with hitnrun, research the CBSX registered firms that require a Series 56 license, or a Series 7 firm.
 
you have to do your homework & call any firm your considering and actually talk to the person you may do business with

get everything in writing from them , talk is cheap as you know

You have some shady characters in this business , buyer beware
 
Quote from Av8rdan:

I am just now starting to do some due diligence on a possible prop trading firm I would like to use, Broad Street Trading. I see decent reviews, and the person who I've been communicating with via email has explained everything pretty well so far.

Here's my problem. Being new to this type of trading, it just sounds too good to be true. I give them $5,000 and they let me trade 10-to-1, so I have $45,000 of THEIR money to trade with. That sounds fantastic, but they say that even if I lose more than the $5,000, I do not owe them the money lost above that amount. But I also get to keep 100% of the net profits...again, sounds too good to be true. How to these firms make their money? I can understand a 70/30 split on profits or something, but they claim to pay 100% of net profits. Please....what am I missing?

I would just like to communicate with anyone currently using this firm, and give me a really honest review. Not about if I will make money, that's my worry, but how legit this company is, if they will be here a year from now, if this kind of trading (without a Series 7 license) is legal, etc.

Also, if anyone has a referral to a better non-Series 7 prop firm, I am all ears.
More...

You aren't missing much. The firm makes money off commissions. When you buy 100 shares of IBM for example, you pay a commission. Part of that goes to Broad St and part is to the clearing firm. The SEC has some fees as well as some taxes and other charges by regulatory and government bodies.

Most of the industry is structured where you pay the commission for access to the leverage (there is no marginal interest charge since it's firm capital, not margin).

I think Broad St. has just changed their business model into strictly a hedge fund if I'm not mistaken (I could be wrong). They're getting out of the CBSX business anyway.

I would suggest you try: Bright Trading, Capital Traders Group, Echo Trade, JC Trading Group. These seem to be the more reputable firms that traders speak about on the boards.
 
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