Prop accounts will allow you to trade with as little as $3,000, and typically offer 10:1 and even 20:1 leverage which is good, however, in order to get these benefits you have to pass a series 56 test, provide access to all of your outside investment accounts and they lock your initial deposit for 1 year.
Benefits:
- Low cost of opening an account
- Impressive leverage
- Daily maximum drawdown is controlled
- Can get commission rebates
- Multiple platforms to choose from
Drawbacks:
- Ca ot hold stocks overnight
- Must pass a Series 56 or Series 7 test
- Have yearly mandatory FINRA continuing education (rules and regulations education)
- 1 year lock period on your initial deposit
- Must list outside brokerage accounts (and pay a fee to do so)
- Can only withdrawal your profits once a month
CORPORATE ACCOUNT
Corporate accounts are similar to a prop account, however there are a lot less restrictions. The entry price is roughly $3,000, leverage is usually 10:1 and up to 30:1. However, where they are vastly different is in their