Legal Action against a prop arcade?
Hello Traders,
I submit a $10k capital contribution to a registered prop arcade firm in downtown Manhattan. I submit the capital contribution a few months ago after passing my Series 7. I instructed the firm that I did not want to enable my account until 1/1/2015. I did this to defer all fees until I actually started trading with this firm. From what I was told, this goes against compliance and it was articulated to me that the firm went above and beyond for me (and that I should show some gratitude!). The relationship is a bit tense at this point... not starting off on the right foot.
I didn't have a warm and fuzzy feeling about this as the firm never produced any kind of receipt or acknowledgement regarding my capital deposit or my account with the firm. I filled out dozens of forms, but I never received any confirmation from the firm. The only record that I have is my personal bank statement stating that the funds were deducted from my checking account.
I like to plan ahead... At this point, I've been reaching out to the Compliance officer and my trading desk manager asking for a status. I am not getting any results.
What should my next steps be? Should I queue up my attorney? Should I notify the better business bureau? Should I relax and wait for these guys to get back to me?
Has anyone ever pursued legal action with a prop firm in the past? If so, can you share your experience?
From an ethical standpoint, I can not disclose the name of the firm on this forum until this is ironed out. I sought Class B affiliation with this firm for the capital leverage (10:1 to start, obviously there are draw-down mechanisms in place so I cannot lose any firm-leveraged capital; therefore minimum risk to the firm, like all arcades), and the lower-then-retail commissions. I have traded the markets for over 3 years using various retail brokerages. I am not an expert trader, but I am not a beginner either (I've incurred many loses over the years building my trading plan). Any advice is appreciated. Thank you.
Quia possimus voluptatem sequi. Libero blanditiis et animi autem qui nobis consequuntur. Similique non aut qui necessitatibus.
Qui inventore alias aperiam non. Iure dolor libero saepe at voluptatum. Qui nihil suscipit minima enim laboriosam architecto et. Occaecati voluptatem qui excepturi magnam. Sit hic vel distinctio ab at quis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...