WTSProp vs Lightspeed..

kcgoogler

kcgoogler

Just had a chat with a prop firm guy and am trying to see the advantages of a prop firm vs trading your own money.

I can get 1:4 intraday leverage for stocks; so if i put up with 25k, i can trade 100k worth of stock. And with a brokerage like lightspeed with the rebate structures and 0.0045c stock commisions, its as good as any prop firm i think (i am in particular comparing it with WTSprop).

At wts prop, i might get a bit more money to play with but i loose 10% of profits; plus monthly maintenance cost is around $200; whereas for lightspeed its almost zero.

Anybody has any insights to share?

edit: actually at lightspeed, there is a min 1$ ticket charge. That could be problematic; since for 100shares of stock i can get it for about 50c at wts.
 
With a prop like WTS, you can put up 5-10k and get your 100k buying power plus the rates you will get from them or one of their groups will be on par or better than what you get directly from Lightspeed with all the rebates you would expect from LS. Also, with WTS, you an use the Lightspeed platform or choose Sterling or Lazer.

Pluses: you only put up 5-10 k so that is you risk.

Negatives: money is locked up for a year (they are a CBSX firm), you will have to get licensed shortly (CBSX is rolling out a new prop traders exam) and will have to pay professional data fees. Usually the prop you are with only allows withdrawals certain times of the month while a retail account does not have such restrictions. Also, if you open any prop trading account vs going retail, you DO NOT have SIPC insurance protection on your funds in the event that you blow up.
 
Quote from JamesL:

Pluses: you only put up 5-10 k so that is you risk.
Negatives: money is locked up for a year (they are a CBSX firm), you will have to get licensed shortly (CBSX is rolling out a new prop traders exam) and will have to pay professional data fees. .
More...

Any idea if having the series 7 and 55 takes the place of this, or is this an additional test that is required (regardless of what you currently have?)
 
"Also, if you open any prop trading account vs going retail, you DO NOT have SIPC insurance protection on your funds in the event that you blow up."
________

Thanks for the information James.

For the bad part do you mean your funds are not protected if the firm blows up; because if you blow up then i dont think any insurance will put your money back in the bank.

-gariki
 
Quote from kcgoogler:

"Also, if you open any prop trading account vs going retail, you DO NOT have SIPC insurance protection on your funds in the event that you blow up."
________

Thanks for the information James.

For the bad part do you mean your funds are not protected if the firm blows up; because if you blow up then i dont think any insurance will put your money back in the bank.

-gariki
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Yes, firm blow up, not you. Nothing can protect you if you blow up.
 
James...good balanced post!

Quote from JamesL:

With a prop like WTS, you can put up 5-10k and get your 100k buying power plus the rates you will get from them or one of their groups will be on par or better than what you get directly from Lightspeed with all the rebates you would expect from LS. Also, with WTS, you an use the Lightspeed platform or choose Sterling or Lazer.

Pluses: you only put up 5-10 k so that is you risk.

Negatives: money is locked up for a year (they are a CBSX firm), you will have to get licensed shortly (CBSX is rolling out a new prop traders exam) and will have to pay professional data fees. Usually the prop you are with only allows withdrawals certain times of the month while a retail account does not have such restrictions. Also, if you open any prop trading account vs going retail, you DO NOT have SIPC insurance protection on your funds in the event that you blow up.
More...
 
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