Can they take my money and run?
I am a daytrader looking to go with a "boutique firm" which has a relationship with a broker dealer whose SRO is the CBOE. Clearing is through Merill lynch. Im going to be putting up a significant amount of capital with the boutique firm and getting leverage and ML clearing. Accounts are structured as follows: U4 Paper work is filled out under the traders name and trader becomes a registered CBOE prop trader under the BD. Funds are kept with the boutique firm, all funds in the boutique firm are segregated by account and can be seen daily on both the Merrill Lynch accounting sheets and their BD's Sheets.
How safe is it to transfer my capital to these guys? How likely is it that they could they just take my money and run? What would prevent them from doing that? and what recourse would i have in such a situation?
Forget about all that… Just transfer your money to me and I will take care of it for you…
If I were putting “significant capital” into such a situation I wouldn’t rely on forum feedback for advice. Get a lawyer – one with securities industry experience.
Thanks to all who replied. Can anyone else provide a different perspective on my question?
[quote=proptrader]Thanks to all who replied. Can anyone else provide a different perspective on my question?
I think Duke has the right idea…don’t ask a forum full of retail financial advisors, hire an expert. Among other things, if the situation goes sour they can help you. Too, you can hold them responsible if they give you bad advice.
From what you’ve described the situation sounds fishy to me.