Prop firms - SEC Focus Reports Comparision

M

mspkash1

I'm in the process of selecting a prop firm and pulled up the focus reports of a bunch of firms and listed the key metrics below. Can you please provide some insights as to which one is better and why? (I didn't want to assume the higher the $ amounts, the better)
All are as of Dec 2014

WTS
Total assets - $1M
Total liabilities - $200k
Members Equity - $1M

T3
Total assets - $32M
Total liabilities - $15M
Members Equity - $16M

Avatar
Total assets - $14M
Total liabilities - $6M
Members Equity - $8M

Chimera
Total assets - $27M
Total liabilities - $12M
Members Equity - $15M
 
Can't make evaluation just on numbers provided, you have to also consider % of pay-out, cost of trading, your trading style, amount of leverage provided, minimum deposit, pedigree of the managing partners, clearing firm, over night positions charge etc...
 
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dealmaker, the idea behind this thread is to just evaluate the popularity/strength of the firm. I know other things like payout and commissions do matter which I am considering but I wanted to get a feel of the safe/less risky firms based on their financials.. Thanks
 
mspkash1 said:
...but I wanted to get a feel of the safe/less risky firms based on their financials.. Thanks
More...

Bright still lists the Class A vs. Class B members, which is a key metric. The others do not, for whatever reason.

However, if you want to "get a feel of the safe/less risky firms" then ask for the breakdown of members' equity by class. Class A members are the owners, the rest are either Class B or Class C (traders or trading groups).
 
because what is considered class B at Bright is class C in some others eg T3. I was the impression that WTS had merged (bought out) with T3 but apparently not...
 
Yes, I'm aware of that. What I meant to write was Bright DOES break down the equity between owners (Class A) and traders (Class B) by the specific amount of capital.

The other firms lump all their equity together as "members' equity" without breaking down the difference between owners' vs. traders' capital.

And WTS has merged with T3, it occurred in 2014, and my guess is they were still required to list what equity was remaining in the focus report. WTS is no longer a broker-dealer.

If you look at the final notes in the focus report, it clearly says the following:

"The Company filed Broker-Dealer withdrawal with PHLX on January 7, 2015, which was approved on February 5, 2015. No other events requiring disclosure have been identified."
 
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