Retail Accounts at Prop Firms

[Liz]

Hi,

I was wondering are people able to open retail accounts (25k+ deposit) at a prop firm if they don't want to take any of the exams. If so, can they get better than 4-1 leverage as well as commissions similar to those of a prop trader?

 

[DeltaRisk]

Hi,

I was wondering are people able to open retail accounts (25k+ deposit) at a prop firm if they don't want to take any of the exams. If so, can they get better than 4-1 leverage as well as commissions similar to those of a prop trader?

You are subjected to Reg-T by the exchange, so your answer is no.
Commissions vary depending on who you deal with.

Portfolio margining is the best a retail trader can get. I caution you though, many traders blow out their accounts not understanding how it’s calculated.
Go visit https://www.theocc.com/risk-management/rbh/

Prop firms deal in net capital requirements and risk based haircuts. If you don’t understand these concepts, you are not ready to trade for a living.
Now I’m not going to go further, but you might want to study up before you click a button.

 

[Robert Morse]

Hi,

I was wondering are people able to open retail accounts (25k+ deposit) at a prop firm if they don't want to take any of the exams. If so, can they get better than 4-1 leverage as well as commissions similar to those of a prop trader?

No such thing at as a retail account at a prop firm. You either join as a registered person or open a "customer" account with a broker like us. With $25K the most you can get is up to 4X for DT, and your account must stay over $25K.

 

[TDMA]

Unless they trade crypto assets then it's different.

 

[Proptrader23]

Hi,

I was wondering are people able to open retail accounts (25k+ deposit) at a prop firm if they don't want to take any of the exams. If so, can they get better than 4-1 leverage as well as commissions similar to those of a prop trader?

Why are people so afraid of the exam?

 

[Robert Morse]

Why are people so afraid of the exam?

To me the exam is not the challenge. Anyone that tries hard enough should be able to pass. I'd be concerned about:

• Commingling my money with strangers
• 1 year lock of my money
• Being part of a regulated broker dealer as a partner where you can be associated with their wrong doing
• Requirement to get their permission for outside businesses

I did it once and was not happy.

Bob

 

[ajacobson]

I've found when hiring that sometimes it's not the exam itself. It's occasionally a regulatory history.

 

[dealmaker]

some prop firms now are offering retail accounts eg T3....

 

[Proptrader23]

To me the exam is not the challenge. Anyone that tries hard enough should be able to pass. I'd be concerned about:

• Commingling my money with strangers
• 1 year lock of my money
• Being part of a regulated broker dealer as a partner where you can be associated with their wrong doing
• Requirement to get their permission for outside businesses

I did it once and was not happy.

Bob

Don't get me wrong you really have to do your DD on firms. But I have seen many individuals on forums looking for offshore prop firms and mention avoiding licensing.

 

[Robert Morse]

Don't get me wrong you really have to do your DD on firms. But I have seen many individuals on forums looking for offshore prop firms and mention avoiding licensing.

And even less protection as they might not be regulated. Your money, just trying to help.