Hi, I would like to ask you some more questions about Alkaline-Capital. I'm considering to contact them...How long have you been with them?
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Prop Trading Business Model
- Thread starter RedSun
- Start date
I think, that you are not right. I am assured. Let's discuss it.
Hi, I would like to ask you some more questions about Alkaline-Capital. I'm considering to contact them...How long have you been with them?
for me its been abt 3-4 mths with them. ya reach out, i find the founder really responsive. they usually send a termsheet with all details so that really helps
Thanks a lot for your feedback. With so many scams around, I'm always a little bit worried, I personally know people who lost their risk deposits. Thanks
Thanks a lot for your feedback. With so many scams around, I'm always a little bit worried, I personally know people who lost their risk deposits. Thanks
yeah prop trading is not a regulated business outside the US and I have navigated many of them over more than a decade now to be able to separate wheat from the chaff. I try and avoid the cayman/cyprus/T&T ones mostly
SO what protection you get from those claiming to be based in Canada.. they are not regulated there either it seems!yeah prop trading is not a regulated business outside the US and I have navigated many of them over more than a decade now to be able to separate wheat from the chaff. I try and avoid the cayman/cyprus/T&T ones mostly
RedSun - A Prop firm is a trading operation that can be either regulated or unregulated. An unregulated prop firm uses partner's capital to make money by trading. They can hire employees to trade, but they are employees. They can't take trader money as first loss and mark up anything for profit. They make their money when the trader makes money trading. The regulated prop firms come in general in two types and are SEC regulated Broker Dealer and require a SRO to monitor their business like an exchange or FINRA. They are the traditional prop firm and JBO. An example of the traditional prop firm would be SIG (Susquehanna Financial Group). They make their money when the trader makes money trading. They traders are employees and do not offer capital. The other type is the Joint Back Office (JBO) structed Prop Firm. This is the type where the trader puts up money as first loss, the firm provides leverage, the trader is some type of partner and get paid with a K1. This model allows the firm to markup commissions, interest, platform fees etc. They can make their money from education, commissions, interest, desk fees, and their cut of profits, which is generally very low and not a profit center. These firm require you to lock up your deposit for 1 year and follow their rules, if your capital is commingled with firm capital, which is the most common set up. I hope this helps. Feel free to contact me directly for any follow up questions.
What a great post. Can you signpost me to first-loss capital providers.
SO what protection you get from those claiming to be based in Canada.. they are not regulated there either it seems!
only way to have that 100% protection is if you trade with a US based prop firm but unfortunately they won't take any non US person and require large capital to be put down. Atleast I have something to fight against a Canadian entity if things go south but those Islands I have no rights and/or means to even begin to salvage something if things are going south.
I guess so but some of the Canada based firms have things like " Ontario based or certain province based residents can't trade" that raises red flag + the entire swift saga + the so called world wide DTTW office!only way to have that 100% protection is if you trade with a US based prop firm but unfortunately they won't take any non US person and require large capital to be put down. Atleast I have something to fight against a Canadian entity if things go south but those Islands I have no rights and/or means to even begin to salvage something if things are going south.
Hi, I would like to ask you more details about "Ontario based" prop firm. Did you have any issue with some of them? Is it a red flag only if they keep out Ontario residents from trading? Or also if they are based in Ontario? I would like to join one of them (based in Toronto), but I'm afraid to loose my risk deposit. Thanks