Which broker to use if you're starting a prop firm?

Discussion in 'Prop Firms' started by MyNinja, Jun 28, 2022.

  1. MyNinja


    Just wondering if you guys have any idea on which broker to use as a prop firm focusing on the USA equities market that offers 10x or more leverage intraday? I've checked with interactive broker's prop trading solutions and they only offer 4x , so I'm just wondering how and where do prop firms go to get that kind of leverage intraday.

    Thanks in advance guys
  2. jnbadger


    Do you mean starting a prop firm, or starting "at" a prop firm? I'm with Hold Brothers. I get 50 to 1. But I had to have proven previous results and get my 57. And I never use all of my leverage.
  3. Robert Morse

    Robert Morse Sponsor

    MyNinja, I do not want to make too many assumptions about you or what you have access to, but I expect starting your own Joint Back Office (JBO) type Prop firm to get excess leverage like a T3 or Hold Brothers is going to be a harder than you expect. For starters, you need to be a licensed SEC broker, choose a Self Regulatory Organization (SRO) to regulate you, have in excess of $1mm, have a clearing broker to the partner with and have a staff that has their licenses to get approval to get started. It would be easier to start an unregulated trading firm with a Portfolio Margin Account. You can get up to 6.67x for day trading and if you can raise $5mm, get, upon approval your 10x from your broker for day trading. This PM customer account will not have the regulatory requirements of the JBO broker, but will have other restrictions.

    MyNinja likes this.
  4. jnbadger


    Hi Robert. You're an early riser like me. That's good info. I would definitely go with Lightspeed if I went retail.
  5. MyNinja


    Thanks so much for the information, I think that unregulated trading firm route that you mentioned is perfect for us. Well, we're actually doing way beyond $5mm a year on our day trading operations using 4x leverage, would you be so kind to let me know which broker could give us 10x leverage for day trading?
  6. MyNinja


    I meant starting a prop firm
  7. jnbadger


    Ok. Thanks. I wouldn't even know where to start. But Robert Morse definitely knows his stuff. Good luck and let us know how it goes.
    MyNinja likes this.
  8. id say anyone using 50-1 has 100% chance of blowing up the account
  9. There are strategies out there which are insanely good which could theoretically handle 50-1 in stocks, but in these kinds of strats all the risk is in the execution. One day the algo goes offline or bugs out, and boom.

    So I'm curious how Hold is able to offer 50-1. Is this straight up or is it some kind of deal where you have collateral outside the account?
  10. @MyNinja Hey I am also using IB (Canadian Account so my margin is even worst...). Does Interactive Brokers give more intraday leverage at any point if you grow your assets? Or will it always stay similar?

    I use to work for a Equity Prop Trading Firm in Canada and they were using CIBC and getting more then 10X intraday.
    #10     Jun 30, 2022