"Pseudo Prop trading firms"
Hi,
I was hoping someone would have an idea how a company like Top Step Trader works. They are not regulated because you don't need to have a series 53 License. How are they able to supply you with their capital. And how would they use a clearing brokerage. I am curious how this company operates. They are based in Chicago. Any information would be great. Thank you
- Indeed how do firms like these do business without being licensed? ..
- one loophole could be - they "Claim" they don't ask you for trading capital and you end up ( if funded) trading firms capital
The charge they have is for test! education etc...
Last time I checked (as an example) if you are contributing to firms money then you need to be Series 7 and the firms needs to be licensed
This is the new frontier of the lowest of low level so called prop trading and what people dont realize is the entire business model is most likely very questionable if not illegal!
The top end true Prop firms dont charge people, they test you for sure just like Ford or Google would test trainee engineers.
Neither do you see top bank charging graduates for recruiting for it's in house Prop desk"
The business model simply seems to be have a wider net, get as many wannabees to take the "test" pocket the monthly fees and only fund very few...
Try and asking how many traders they truly fund!
Now I am sure people are going counter this argument by comparing such "training" to Unii degree and throw lines such as
.. what is wrong in charging for training, you need to pay to become a doctor or an Architect what is wrong in this! Conveniently forgetting that it is not a fair comparison.. How on earth can one compare any institutions which requires millions in funding has scrutiny going back 100 of years with any tin pot business
claiming to make you a "professional" trader by doing a 15 day "Course" lot oF BS but our greed makes believe...
- Seminar sellers
- EA "system" sellers
- and now this model... "pseudo Prop trading firms"
What I dont understand is in USA one has to be a CTA to advice people what to trade but the same regulators allow hundreds of such "Trading educators" Scott free, wrap everything as "Education" slap a "Disclaimer" and do the same thing... perfectly legal LOL
