Once you go pro (series 56), can you go back?

B

bellman

There are pros and cons to getting licensed with a firm, and it takes some time and energy to pass the exam for a license.

But, my question is, once you go pro, can you then go back to being a regular trader and not have to pay pro rates for data, etc?
 
The answer is yes. Non-pro data rates are for customer accounts with no entity. If in the future you are not registered with a broker dealer and trade in an account without an entity, you are a non-pro customer again.
 
Ferdinand said:
What are the cons?

I have no problem criticizing the tests, easily 90-95% of the content is purely irrelevant.

But, I got the Series 7 and 55.

You can argue that the pros aren’t that great.

But I find it very hard to believe there are any cons.
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AFAIK, when you are a licensed trader you must pay the higher pro fees for data (NYSE, NASDAQ, etc.).
 
It's complicated. Can you get the data feed free without paying for it if you aren't licensed?

I am not trying to make a point here, I don't know, so it's a legit question.

I pay, I'm licensed, and I'm happy with my arrangement.

I'm not trying to say I have the best deal in the world or everyone needs to do it exactly like me.

That said, I can't see these licenses as a disadvantage.
 
Let's not conflate "net" disadvantage with individual pros and cons. Paying more is always a con (even if the overall positives of being licensed out-weight the cost).

Ferdinand said:
It's complicated. Can you get the data feed free without paying for it if you aren't licensed?

I am not trying to make a point here, I don't know, so it's a legit question.

I pay, I'm licensed, and I'm happy with my arrangement.

I'm not trying to say I have the best deal in the world or everyone needs to do it exactly like me.

That said, I can't see these licenses as a disadvantage.
More...
 
If the question revolves only around market data fees, we are talking about very little money when you consider you are running a business. If the question is about the pros and cons of joining a prop firm vs trading in an institutional or retail customer account, that is a very interesting question.

The advantage of a JBO Prop account is that you can trade with very little capital, get good leverage and have lower rates than you might get on your own with a small account. YOu might or might not get some training.

The disadvantages are that you:

-have your capital locked up for one year
-have to register with a broker dealer
-pass an exam
-give up a % of profits
-your capital is not protected by SIPC
-your capital is co-mingled and at risk to other traders and the firm
-you have regulator risk from the firm's activity
-you often can't use your P/L to build a track record to bring in investors in the future
-"your account" is not your account, it is a firm account
-if you trade options, you lose customer priority and pay higher exchange fees
-you are bound by all rules associated with the JBO Partnership

In the end, if you have enough capital to run your own trading business, IMO, that is better than joining a prop firm. If you have nominal capital and that is the only way to trade enough to make a living, you have to go that route.

Bob
 
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