Yes, if you can avoid the $1000 annual membership fee, it makes sense to do so. You might just as well have your clients open their accounts and give you power of attorney to trade them. If you don't need to register, you don't need a CTA "company" and the disclosure doc and so on. You'll only need a one page agreement with the client that they'll pay you your management fee.
What's the 1000 registration fee thing mean? If someone gives me like 20k, would they have to pay 1k a year to let me trade with them? that's a bit extreme. What are the requirements for the participants for the two types of partnerships. I thought that there was a minimum net worth/personal income requrement thing for one of them.
The $1000 I mentioned is the annual NFA membership fee required of non-exempt CTA's and CPO's. There is also a $100 annual CFTC registration fee.
Assuming that I don't want to trade futures, just stocks and options, is that a fee that I have to pay, or is that a fee that every person who gives me money has to pay. If the total fund is over 200k, then what do I have to do, and do I have to pay more? I'm sorry this is getting so long. I bet i'm bugging the hell out of you.
If you don't trade futures in your fund then you aren't regulated by the NFA or CFTC and don't have to pay them anything.
OK, then what would I need to do. I looked up partnerships in my librar, and I couldn't find anything useful. I don't mind paying like 50 bux for a book though. Could I build the fund to any size though, or are there limits on the number of people allowed, the account sizes, or the investment requirements for those people? Am I alowed to advertise? I'm sure there has to be a tread somewhere, but if not, I guess it's up to you aaron, you seem by far the most qualified.
All the questions you have asked in this entire thread are answered in <u>How to Start Your Own Private Investment Partnership</u> by Fiszel and Peteros. Another free source of information is the email book hedgefunddynamics.com will send you if you register at their website. Good luck!
http://elitetrader.com/vb/showthread.php?s=&threadid=4786 I finally found a goood link after some searching.
Aaron, I bought that book from amazon and am halfway through. I have almost no background in accounting and am quite lost. There are so many rules. How were you able to do it all yourself without armies of lawyers. Were you able to understand it all yourself? Did you contact other people?