Updated Prop Firms for 2016

S

sandmann

First post long time lurker.

I'm a equity day trader looking for a list of 2016 updated prop firms that trade only stocks, any advice/experience is greatly appreciated.

Does anyone have any information/experience with prop firm's that accept Canadian citizens without a series 7 or 56 licence with a min 5k/10k deposit with 10:1 leverage that are members of SIPC. Also i prefer DAS TRADER as a platform so if you know of a specific firm that has DAS trader please don't hesitate to let me know.Keep in mind please don't mention sure trader as they are not registered with SIPC so that being said no money of mine will enter that little broker down in the Bahamas.

CY group online / Located in Los Angeles members of SIPC and accept Canadian Citizens min 10k deposit no refund/1 year lock 20:1 leverage no licence required.

Shark Traders / Located in Russia members of SIPC and accept Canadian citizens kinda sketchy there located in Russia. min 2k deposit as of jan 2016 30:1 leverage no licence required.

those are the only too firms i have contacted so far that have what i'm looking for, ANYBODY with further information on Shark traders please let me know and anyone else who can climb in on the subject and help me out i would greatly appreciate it.
 
sandmann said:
Does anyone have any information/experience with prop firm's that accept Canadian citizens without a series 7 or 56 licence with a min 5k/10k deposit with 10:1 leverage that are members of SIPC.
More...

It sounds like you are looking for an unregistered prop firm. EVERY broker dealer in the US is a member of SIPC and EVERY BD in not covered with SIPC protection for firm accounts, only customer accounts. And, if you join a trading group that is "customer", the account gets covered once under their EIN#, not for each sub account. I would be very careful joining an unregistered prop firm.

Good luck,

Bob
 
rmorse said:
It sounds like you are looking for an unregistered prop firm. EVERY broker dealer in the US is a member of SIPC and EVERY BD in not covered with SIPC protection for firm accounts, only customer accounts. And, if you join a trading group that is "customer", the account gets covered once under their EIN#, not for each sub account. I would be very careful joining an unregistered prop firm.

Good luck,

Bob
More...

No not at all, i would like to find a registered broker if possible, what does that mean "EVERY BD is not covered with SIPC protection for firm accounts,only customer accounts" .If the broker say's on there page that they are registered with SIPC wouldn't my money be safe if the company goes belly up because of SIPC, i'm confused if you could explain a little more in detail i would greatly appreciate it.

For an example lets take a broker like sure trader located in the Bahamas that is not registered with SIPC, if they go belly up your screwed kiss your money good bye, if a broker/prop firm is registered with SIPC and located it lets say Russia or whatever location wouldn't my money be more safe with a registered broker with SIPC coverage then sure trader or any other broker that isn't even registered with SIPC,correct me if I'm wrong.

Thanks for the response greatly appreciate it !.
 
SIPC only covers "customer" accounts. It's that simple. http://www.sipc.org/for-investors/what-sipc-protects If your broker offers you a customer account with SIPC protection, you have it. If you join a prop firm that is a broker dealer, you get no protection. If you join a firm that is not a BD, and they have a customer account, the account is covered once, not you sub account.

Does that help?
 
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sandmann said:
No not at all, i would like to find a registered broker if possible, what does that mean "EVERY BD is not covered with SIPC protection for firm accounts,only customer accounts" .If the broker say's on there page that they are registered with SIPC wouldn't my money be safe if the company goes belly up because of SIPC, i'm confused if you could explain a little more in detail i would greatly appreciate it.

For an example lets take a broker like sure trader located in the Bahamas that is not registered with SIPC, if they go belly up your screwed kiss your money good bye, if a broker/prop firm is registered with SIPC and located it lets say Russia or whatever location wouldn't my money be more safe with a registered broker with SIPC coverage then sure trader or any other broker that isn't even registered with SIPC,correct me if I'm wrong.

Thanks for the response greatly appreciate it !.
More...

You need to understand the distinction between customer and prop. "Protection" is for customers or retails folks. "Professionals" don't need protection and in many cases don't want it. Why? It's usually associated with higher fees, higher commissions, more regulations, etc. That's why the risk of a prop firm blowing up is really important and you want to be in the US and at the very least you want them to be registered with an exchange.
 
Sandman, you couldn't be more wrong...you have all your facts wrong. SIPC is only for retail and institutional accounts of real Broker Dealers. If CY or Shark Traders are telling you that your account is protected by SIPC they are straight up, 100% lying right to your face. If you want proof simply call SIPC and ask:

http://www.sipc.org/for-investors/fraud-alert

Actually, you are right about one thing. An account at Sure Trade also is not covered.



sandmann said:
First post long time lurker.

I'm a equity day trader looking for a list of 2016 updated prop firms that trade only stocks, any advice/experience is greatly appreciated.

Does anyone have any information/experience with prop firm's that accept Canadian citizens without a series 7 or 56 licence with a min 5k/10k deposit with 10:1 leverage that are members of SIPC. Also i prefer DAS TRADER as a platform so if you know of a specific firm that has DAS trader please don't hesitate to let me know.Keep in mind please don't mention sure trader as they are not registered with SIPC so that being said no money of mine will enter that little broker down in the Bahamas.

CY group online / Located in Los Angeles members of SIPC and accept Canadian Citizens min 10k deposit no refund/1 year lock 20:1 leverage no licence required.

Shark Traders / Located in Russia members of SIPC and accept Canadian citizens kinda sketchy there located in Russia. min 2k deposit as of jan 2016 30:1 leverage no licence required.

those are the only too firms i have contacted so far that have what i'm looking for, ANYBODY with further information on Shark traders please let me know and anyone else who can climb in on the subject and help me out i would greatly appreciate it.
More...
 
rmorse said:
SIPC only covers "customer" accounts. It's that simple. http://www.sipc.org/for-investors/what-sipc-protects If your broker offers you a customer account with SIPC protection, you have it. If you join a prop firm that is a broker dealer, you get no protection. If you join a firm that is not a BD, and they have a customer account, the account is covered once, not you sub account.

Does that help?
More...
Thanks again for your response i really appreciated it. I totally understand, i was searching the SIPC and found pretty much the same information today.

http://www.sipc.org/for-investors/investor-faqs#affiliated-non-us-broker-dealer

i have a good question for you if you could answer that would be awesome.

Let's say the prop firm i want to join is located in Russia and they say that they are members of a registered US brokerage firm is US and protected by SIPC. Lets say all the client's funds are transferred to a brokerage account located in the US. Every broker represented by the prop firm is a member of SIPC and their capital is protected from the insolvency of the broker or any major incident because my money is transferred and held by a US brokerage firm, am i protected if my money is being held by a registered US brokerage, please correct me if I'm wrong.

Can a prop firm even do this ? "be based in Russia and hold my money in a US registered/SIPC brokerage firm",and if they can would my money be protected if the prop firm holds my money in a US registered brokerage firm protected by the SIPC located in the US? and have my money safe in a US brokerage but ill be registered with a Russian based prop firm company ?

hoping all of this make's sense i tried to explain it the best i could your response is greatly appreciated.

Thanks Dylan.
 
You lost me trying to explain what you are talking about but the bottom line is NO....your funds are not protected. I went to Shark Traders website and they are trying to make you think you are...but you are 100% not. I have submitted the Shark Traders website to the SIPC Fraud Department.

sandmann said:
Thanks again for your response i really appreciated it. I totally understand, i was searching the SIPC and found pretty much the same information today.

http://www.sipc.org/for-investors/investor-faqs#affiliated-non-us-broker-dealer

i have a good question for you if you could answer that would be awesome.

Let's say the prop firm i want to join is located in Russia and they say that they are members of a registered US brokerage firm is US and protected by SIPC. Lets say all the client's funds are transferred to a brokerage account located in the US. Every broker represented by the prop firm is a member of SIPC and their capital is protected from the insolvency of the broker or any major incident because my money is transferred and held by a US brokerage firm, am i protected if my money is being held by a registered US brokerage, please correct me if I'm wrong.

Can a prop firm even do this ? "be based in Russia and hold my money in a US registered/SIPC brokerage firm",and if they can would my money be protected if the prop firm holds my money in a US registered brokerage firm protected by the SIPC located in the US? and have my money safe in a US brokerage but ill be registered with a Russian based prop firm company ?

hoping all of this make's sense i tried to explain it the best i could your response is greatly appreciated.

Thanks Dylan.
More...
 
sonictrader said:
Sandman, you couldn't be more wrong...you have all your facts wrong. SIPC is only for retail and institutional accounts of real Broker Dealers. If CY or Shark Traders are telling you that your account is protected by SIPC they are straight up, 100% lying right to your face. If you want proof simply call SIPC and ask:

http://www.sipc.org/for-investors/fraud-alert

Actually, you are right about one thing. An account at Sure Trade also is not covered.
More...

Thanks for your response i greatly appreciated, i'm going to call SIPC tomorrow to find out and confirm everything i called today already they were closed. SIPC # (202) 371-8300
Yeah shark traders is saying I'm protected by SIPC because my money will be transferred to a registered US brokerage firm protected by SIPC so since my money is being transferred and held in the US with there brokerage firm. Is my money protected and can you even do that ?

here is what he said in a email "I should say that all the client's funds are transferred to broker's accounts. Every broker represented by the Shark Traders is a member of SIPC and their capital is protected from the insolvency of the broker or any force majeure incident.

Thanks again Dylan.
 
sonictrader said:
You lost me trying to explain what you are talking about but the bottom line is NO....your funds are not protected. I went to Shark Traders website and they are trying to make you think you are...but you are 100% not. I have submitted the Shark Traders website to the SIPC Fraud Department.
More...

Sorry i tried to explain it the best i could for yeah, and i was thinking the same thing the SIPC page on there website seems like its a hoax just to lour in new trader, the page seems like total BS honestly ! thanks for your response greatly appreciated,if you know of any legit prop firms BASED in the US shoot them my way and ill give them a look.

Thanks Dylan.
 
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