If you trade remote through a prop firm, does the firm need to be licensed in the state in which you trade ?? and does anyone know the costs for a firm to register in a state ?? thanks
Prop Firms and Remote Trading
- Thread starter traderjimbo
- Start date
Yes.
Cost depends on the state. Also the hidden costs of some states like CT that require a 63 in addition to a 7.
Cost depends on the state. Also the hidden costs of some states like CT that require a 63 in addition to a 7.
what are the average costs ???
You can go directly to NASD's site http://www.nasdr.com . Yes, the firm must be registered in the state where you trade. The costs to become registered (take the exams) will be somewhere in the range of $600, which does not include the study material. You can get the study material from Securities Training Corp http://www.stcusa.com/ , they are the oldest in the business. State registration are billed on an annual basis, and it may be somewhere around $100, some states like TX are much more expensive. Depending on which regulator has priority over the B/D, you may / may not need the Series 55.
It's a matter of which "SRO" the Firm is a member of. Each exchange has it's own rules. The NASD does dictate certain licensing, but registration is often times dependent on the exchange.
Don
Don
I usually defer to my Compliance Officer for this type of thing....but, I'll give you my understanding. I think you need to be aligned with a Broker Dealer Firm, and keep up with your continuing education to keep the licenses active.
Also, any Firm you go with will likely require either membership in their LLC, or active employment (as in a brokerage firm).
Hope this helps....
Don