PDT Rule & Prop Firms

Quote from Joab:

90% of prop traders would not survive retail commissions, fee's, platforms etc etc...
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90% of prop traders may not survive retail, but the issue would not be commissions, fees or platforms, IMO. The issue would be leverage for most of them. In fact, if leverage were not an issue, I think most traders would be much better off trading retail and not prop.
 
Quote from nyxtrader:



I actually understand what is going on now. Capital deposits are no good. I would suggest getting your license and going going to work for Bright or a registered firm.
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im thinking Canada.
 
Quote from nyxtrader:

After continued conversation with legal counsel, it is very obvious there is no way around this. LLC's are in clear voilation of these rules for broker dealers.

I actually understand what is going on now. Capital deposits are no good. I would suggest getting your license and going going to work for Bright or a registered firm.

This is not legal advice, just my opinion.
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SO you dont think that the SEC is going to go after the registered B/D prop firms...?
 
Quote from gimp570:

SO you dont think that the SEC is going to go after the registered B/D prop firms...?
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I can't really comment on that because its really on a case by case basis. The only isssue is this, I was told directly from the SEC that deposits are a no no and if there is a deposit, it is to be treated as a customer/client relationship.
 
Some other LLC is offering the following deal:

5000 down i.e. capital contribution.

and 85% pay out

Firm also takes the both the profits and losses up to 15%

They are doing this to circumvent the Reg T, I guess...

Would this work out? OR is this still a risk?
 
Quote from Agassi:

Some other LLC is offering the following deal:

5000 down i.e. capital contribution.

and 85% pay out

Firm also takes the both the profits and losses up to 15%

They are doing this to circumvent the Reg T, I guess...

Would this work out? OR is this still a risk?
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No, this still won't work, as they are doing business still as a broker dealer w/o being registered. Without being registered you can't even collect commish.

Although I do wonder this...Maybe someone has the answer. What if an LLC, opened a retail account didn't charge beyond the base rate with no capital BUT split the profits 50 50....
Any thoughts?
 
Quote from nyxtrader:

No, this still won't work, as they are doing business still as a broker dealer w/o being registered. Without being registered you can't even collect commish.

Although I do wonder this...Maybe someone has the answer. What if an LLC, opened a retail account didn't charge beyond the base rate with no capital BUT split the profits 50 50....
Any thoughts?
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does canada have this bullshit to contend with?
 
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