Please suggest reliable proprietary trading firms
- Thread starter curiosity
- Start date
Robert Morse
Sponsor
You should be concerned. The type of Prop firm you are referring to is more than asking for your money upfront. You become a partner of the BD, have to take a series of tests, and are bound to be regulated by them for one year with a lock-up of your cash for that time. You have no SIPC protections as your capital is added to firm capital. Why a Prop firm? Can you deposit more than $25K to get Day Trading leverage in a customer account?
I cannot speak for equities, but in the futures universe the CME registered prop firms are NOT allowed to risk employee funds. In other words, you are an employee paid on a W-2 and the risk capital is the firm's capital.
DRW, TransMarket, Peak 6 are examples.
DRW, TransMarket, Peak 6 are examples.
Robert Morse
Sponsor
Hey Bone-For Equites, the SEC allows a Joint Back office (JBO) arrangement between a broker-dealer and the clearing broker. The BD only has to have $1mm in net capital and then can take on members with those new members providing first-loss capital. I'm not a fan.
I think I was with 4 or 5 prop firms in a 10 year stretch (but usually as part of a group) and not once did any of the prop firms require series tests (however we were Canadian group), all required between $2-10K deposit (based on stop loss) and gave absurd buying power. Never had any real issues with any of them, however several closed down or merged - but never stiffed us financially.
If you don't mind please share names of those 4 to 5 prop firms you were with. May I know why they require $ 2-10 K deposit ? Don't they check your skills before they fund your account or hire you? What was the buying power given lets say against 2k deposit?
I've worked with JC trading (they have since been charged criminally and disbanded all their companies), Hold Brothers (very solid), Vortex Capital Group (owner left Toronto -where I live, so not sure if still operating. Superb owner, well run.) and Global Prime Trade (believe they have disbanded or merged with another company, always paid on time but didn't like the fact they were based out of Cayman Island). Also traded with Swift Trade but that was in house.
I was part of a group that traded with Hold Brothers and Global Prime Trade. The $2-10K deposit was mostly a surety to cover stop losses, buying power was irrelevant to deposit amount but I had between $250k and $500k in all brokerages except JC trading.
When I joined the group all I sent was my prop reports.
I was part of a group that traded with Hold Brothers and Global Prime Trade. The $2-10K deposit was mostly a surety to cover stop losses, buying power was irrelevant to deposit amount but I had between $250k and $500k in all brokerages except JC trading.
When I joined the group all I sent was my prop reports.
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"buying power was irrelevant" ??? if you have 10k as risk deposit how much leverage you use will determine how "Quickly" you can loos your 10K! or am I missing something in your statement?
1:10 = -10%
1:20 = -5%
by the way you mentioned you were a "Canadian group" and did not require any series test?
was it because the "Firm" was Canada based and you were also Canada based? (Assuming it was in equity space... )
because when I asked Bright once as a non US resident they still asked me about series test and wanted more than usual deposit
What raises red flags for me with these Canada based firms is they look like a copy cat of Swift this so called firm with hundreds of offices around the globe named DTTW has no proof to back the claim and has this warning ..."This website and its contents are not directed to people resident in the Province of Ontario" WHY if Canada is one country does security rules don;t apply across the country. Something is fishy ?
"buying power was irrelevant" ??? if you have 10k as risk deposit how much leverage you use will determine how "Quickly" you can loos your 10K! or am I missing something in your statement?
1:10 = -10%
1:20 = -5%
by the way you mentioned you were a "Canadian group" and did not require any series test?
was it because the "Firm" was Canada based and you were also Canada based? (Assuming it was in equity space... )
because when I asked Bright once as a non US resident they still asked me about series test and wanted more than usual deposit
What raises red flags for me with these Canada based firms is they look like a copy cat of Swift this so called firm with hundreds of offices around the globe named DTTW has no proof to back the claim and has this warning ..."This website and its contents are not directed to people resident in the Province of Ontario" WHY if Canada is one country does security rules don;t apply across the country. Something is fishy ?
Can you give more details ? What do you mean you were a part of a group?
How one can become part of that group? I visited http://www.hold.com but did not understand their business model or how to join them?
also can you give more details on global as well as vortex? I appreciate that. .thanks