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.
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