Thanks..after todays trading (& i use the term loosely) the ramble made me feel better.... Hope the CPA info helped. Have you got any others??? I'm paying $80 per client per month at the moment and it seems like money for old rope, especially as i was paying $25 for the same service, complete with mistakes!!!! peace & profit
forgot to say that its still cheaper than Arthur Bell's offer of $125 per account plus $250 monthly fee for CTA biz (Managed A/C's)!!!
any of you CPOs out there using a prime broker? and does it make a difference for a CPO whether or not you have a prime broker? thx
thanks for sharing your experience...could I ask what type of strategy you use..whether system or fundamental or TA etc..? Also, is there a reason why you went the managed accts route as a CTA vs. pooling the funds to trade one fund acct as a CPO?
I am systematic based, I currently cover the stock index futures, although am about to launch a diversified product as well. To be honest I didn't give much thought to the CPO route due to what I perceived to be extra regulatory costs/headaches and being non-US based I thought the managed account route would be simpler. It makes no difference from an execution perspective as my executing broker gives up the standard format to each different account, so 1 order from me gets to multiple accounts without me worrying about it. The attached PDF from this months Futures Magazine gives a little more insight into the program
Do cash FX money managers need to register to be a CTA? I am not sure about this but I think that they dont. Can anyone please verify? Thanks. Fitrol> Very nice stuff. Congrats on your success.
qtip There is a good recording of a seminar on "How to become a CTA" at http://www.interactivebrokers.com/en/general/education/webinars/cta-april2005.html Once you get past the basic introductions there is some good information there. Good trading...
I have not hired a service to audit my account. I wan't under the impression that you must do this in order to become a CTA. However, I do think this is a good idea solely based on the fact of credibility.
In my opinion, any business is a risk just like placing a trade. I have not found anyone who will finance a startup unless you have a proven track record with steller returns over a long duration of time (12-18 months). I guess if you already have this, then you may not have these questions. For those starting out, I found approaching family and friend the first step. Also, try contacting other CTAs who might be interested in moving funds over. Of course, you will need to supply them with enough evidence to warrant this. For me, I am looking at the big picture. It is difficult in the startup phase, but if you have enough belief in your "strategy", you will make it.
Congrats on your accomplishments...! I think it is fair to say that all of us striving to become CTAs want to have the same success.