Prop firms-what questions to ask?

Quote from get even TT:


Is your firm licensed?(I assume this would mean my funds are insured).
What are your commission rates?

Traders who are professional traders with a CBSX prop firm will NOT have SIPC insurance. The only way to get SIPC insurance is to open a retail account.
More...
 
Do prop shops need to see individual trading records before allowing access to firms capital?

If you have a proven strategy, is the training offered by Echo/Bright a disguised revenue generator for the prop shop, or do do they have to offer it to be compliant with Series 7 registration?
 
What the newer guys deciding on which Prop Shop to select is what attributes of Prop Trading are most important to you and pick that one. Such as are lower fees more important than lock-up period or quick payout. Or does one Prop have better trading platform than another.

At Bright Trading it gets an A+ for handing clients money but a C- since it charges higher commish. At say J.C. Trading an A for its lower commish but a C- for long deposit lock-up and once a month payouts.
 
Any firm that requires a lockup is iffy and is not as well capitalized.

Stick to the basics, Firms that require Series 7 and have a seat a the exchange.
 
Quote from t0pd0g:


I can confirm that Echo does not have a lock up, but their rates were pretty high for Sterling.
More...

I called Echo before and found that their commission rates are reasonable, but they charge a lot of other fees. I didn't find it cheap as other people are claiming here.
 
You must log in or register to reply here.
Back
Top