What was your score Don?
PDT Rule & Prop Firms
- Thread starter tito
- Start date
What was your score Don?
Chief, it is over, accept it. Get your series 7 or go retail.
I think I got like 76 or 78, way too high, studied too much, LOL.
Don
Nothing against you Warrior4g but it goes like this:
Deal #1
Trader has his $10,000 at a Retail shop (E-trade, Scottrade, etc.) or (IBKR or TRAD). This trader canât day trade (PDT rule) and only gets 2:1 leverage (REG T) thatâs IF a margin agreement was signed. Not a lot of trades being executed for this poor sap.
Deal #2
Trader has his $10,000 at Prop firm like a Tuco, Sub-LLC or non-registered Prop. This trader's $10k deposit buys him into a PROP masterâs account where he can
1. Day trade all day long (NO PDT Rule),
2. Gets him leverage up to 30:1(NO REG-T Rule)
3. Does not have to pass any exams or get licensed which Professional Traders do.
4. Only downside to this deal is if Prop firm owner runs off with traderâs deposits.
Poor DEAL #1 trader can only make about 40-50 trades a month. DEAL #2 trader says 40-50 trades hell that two/three days of work for him.
What are the differences between a trader in DEAL #1 vs DEAL #2: they both are RETAIL traderâs yes/no?????? And DEAL #2 is some much sweeter for a trader that has a limited amount of cash to trade with.
If (and thatâs a big IF) these PROP firm models are LEGAL money should flood to these type âPROP modelsâ yes/no??????? No need for firms like (E-trade, Scottrade, IBKR or TRAD) shut them down with their crazy ass PDT and REG-T rules yes/no???????
I would love to see DEAL #2 stick around but thatâs up to the trading regulators to decide that yes/no??????????
Deal #1
Trader has his $10,000 at a Retail shop (E-trade, Scottrade, etc.) or (IBKR or TRAD). This trader canât day trade (PDT rule) and only gets 2:1 leverage (REG T) thatâs IF a margin agreement was signed. Not a lot of trades being executed for this poor sap.
Deal #2
Trader has his $10,000 at Prop firm like a Tuco, Sub-LLC or non-registered Prop. This trader's $10k deposit buys him into a PROP masterâs account where he can
1. Day trade all day long (NO PDT Rule),
2. Gets him leverage up to 30:1(NO REG-T Rule)
3. Does not have to pass any exams or get licensed which Professional Traders do.
4. Only downside to this deal is if Prop firm owner runs off with traderâs deposits.
Poor DEAL #1 trader can only make about 40-50 trades a month. DEAL #2 trader says 40-50 trades hell that two/three days of work for him.
What are the differences between a trader in DEAL #1 vs DEAL #2: they both are RETAIL traderâs yes/no?????? And DEAL #2 is some much sweeter for a trader that has a limited amount of cash to trade with.
If (and thatâs a big IF) these PROP firm models are LEGAL money should flood to these type âPROP modelsâ yes/no??????? No need for firms like (E-trade, Scottrade, IBKR or TRAD) shut them down with their crazy ass PDT and REG-T rules yes/no???????
I would love to see DEAL #2 stick around but thatâs up to the trading regulators to decide that yes/no??????????
Don, with all due respect I'm not sure when you last took the Series 7 but it is a far cry from the "Old Days" as there are about 25 chapters of review course material to wade through.
I graduated from a major public university with a b.s. in business and was a former commodity floor trader. There's absolutely NO WAY that I could have passed the Series 7 after just taking a 5 day "review" course.
I think we all took it in 2000 or 2001, not much has changed. I took it with about 10 hours of studying, got 68 (damn, LOL). Took about 20 practice tests, and passed the second time around.
Note: I did have one major advantage, I know the options section perfectly, which is about 30% of the test...I suggest that everyone be sure they know options "cold" they aren't that toughWe have people taking the exam virtually every week....there are several ways to study, the 5 day is just one way.
Don
If taking a 7 i would highly recommend echotrade vs. other shops. Echo is so straightforward , they dont bs advertise on forums, they seem to be very transparent. They use sterling and support is great. A friend i been trading with for quite some time used to be with Bright a while back and i must say he wasn't too happy. I wont say much here. But rule of thumb look for a shop that will treat you fairly. A firm that wont take back your profits because he violated a BP rule. And when asked to close account and get his profits out, didn't receive it. Also look for fair interest rates for taking overnight. Look for low rates of course... i kno echo gives out very fair rates v s. other firms.