prop firms series 7 not necessary
- Thread starter lou vail
- Start date
I think the nature of a prop firm requires you to have a series 7 and 4-1 leverage is RETAIL leverage- IB offers 4-1 intraday. So unless you are a newbie on tight reigns with the firms capital, you can always bget better than 4-1 leverage intraday at a prop.
Can you explain this a little more? I've talked to 3 prop firms lately, 2 are on the west coast. Of those 2 on the west coast, only 1 required a S7 but they both offered 10:1 leverage. Isn't there something to do with how they are set up and how you are associated with them that determins if you need a S7 or not?
Each JBO (i..e prop firm) by their nature has to have exch memebership . Some are mmebers of Pcoast, some are member of Chicago Stock Exch, some NASD. Each of these exchanbes have similar but not exact requirements. NASD firms I think need S7,S63. Chicago needs only S7, CBOE -nothing maybe just a release that each trader knows what he is doing,blah ,etc.
I think firms that are members of CBOE don't need S7.In fact there are also retail firms which have enough $ in their account that they don't need the leverage offered by their clearing firm-i.e. use Reg T margin which means no licenses are needed since they are retail customer and not pros.
If u don't want to test try calling CBOE member firms
I think firms that are members of CBOE don't need S7.In fact there are also retail firms which have enough $ in their account that they don't need the leverage offered by their clearing firm-i.e. use Reg T margin which means no licenses are needed since they are retail customer and not pros.
If u don't want to test try calling CBOE member firms
I don't really have contact numbers other than what is posted ad nauseum here in the pro firms section. Look at the usual suspects-Assent, Bright, Echo, Hold. If you are really averse to taking the S7, you might also consider the retail LLC's which don't require licenses and are not JBO's . The firms that run these have a big chunk of "retail " cash with a broker and will allow you trade said account as a nominee. A simpler structure since paperwork is marginal which could also bite you in the event of a blowup.
Other than an old fashioned retail account with your SIPC insured broker , there are risks involved in joining firms under a pooled capital structure so buyer beware. That being said, there are good benefits in joining these firms as well. So good luck
Other than an old fashioned retail account with your SIPC insured broker , there are risks involved in joining firms under a pooled capital structure so buyer beware. That being said, there are good benefits in joining these firms as well. So good luck