Starting a new prop firm

Quote from apollo28:

Interesting...I was thinking about starting a trading partnership in hong kong or macau that trades US stock.

Currently, I am a swing trader trading equity and option. I use Tradestation platform which gives you 4:1 leverage.

My idea was to start up a LLC based in Hong Kong or Macau. I believe this will help on tax as in Hong Kong, I believe there are no capital gain taxes. Not sure about macau or mainland china. If anybody know, please reply....
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There are no capital gain for HK, Macau and China government. But if you are a US citizen, you still need to pay capital gain for the US government.

(BTW there is no LLC structure in HK, you need to setup a Limited company there)
 
Quote from trader108:

We are a group of traders in China. And right now most of us are in Swifttrade, title trading or hold brothers. And some of us have the idea of starting a new prop firm to save on our commission or increase our payout (or both). I just want to know how difficult it is and how much the daily overhead opertion cost is. Thus we can see whether it's worth the effort or not.

From what I understand, we just need to find a broker dealer and put some deposit (Can we get leverage of 40:1 or more?). What else do we need to do?

Your reply is highly appreciated.
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You need to understand risk management, the daily operation, and risk assessment.

I had similar idea 2 years ago. There are too much involved and it is not justified imo to set up your own sub-LLC. You'd better save the time and effort to learn or improve your trading skills.
 
i undrestand that the following companies have access to Asia and India.
-Title
-Hold
-Golden Market
-Swift
-WTS

at least 3 of these should offer 20 cents per thousand AND 80 percent payout. The BIG difference is one is regarded as a fraud so read the boards. The other difference is how they get their quotes to you and while a lot will use sterling at least ONE has all there own server farms and pulls their quotes directly and thus the speed is much better. I suggest if your planning on opening a branch you research everything and not only price and payout.
 
Quote from proptrader12345:

i undrestand that the following companies have access to Asia and India.
-Title
-Hold
-Golden Market
-Swift
-WTS

at least 3 of these should offer 20 cents per thousand AND 80 percent payout. The BIG difference is one is regarded as a fraud so read the boards. The other difference is how they get their quotes to you and while a lot will use sterling at least ONE has all there own server farms and pulls their quotes directly and thus the speed is much better. I suggest if your planning on opening a branch you research everything and not only price and payout.
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Does any of these firms (besides swift) have it's own proprietary software, or are they all trading off sterling?
 
Quote from proptrader12345:

i undrestand that the following companies have access to Asia and India.
-Title
-Hold
-Golden Market
-Swift
-WTS

at least 3 of these should offer 20 cents per thousand AND 80 percent payout. The BIG difference is one is regarded as a fraud so read the boards.
More...


Which one is the fraud ?
 
Can't you open institutional a/c (in the namebod llc or partnership) with IB and enjoy low comm + 100% payout. If you have enough vol and mostly add liquidity, you may even get paid for trading. Their comm on futures are pretty good.

Just a thought. Looks lot simpler to me.
 
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