Note the "and" at the end of item a. It is both. You have to register if the limits in either a or b are exceeded. Registration involves finger printing, taking the series 3, paying $100 per year for CFTC registration, and $1000 per year for NFA registration. One hint... Take your own money out of the pool as it approaches $200k to stay under the limit as long as possible. Trade your own money in a separate personal account if you still want the exposure to your strategies.
I disagree. I phoned NFA (800) 621-3570 to confirm my doubt's about trading 15 accounts without a licese. There is a large group of traders that think that they can trade other peoples money without being a CTA. First of all The National Future Association (NFA) is Membership and that organization is used by the Commidy Future Trading Commission (CFTC) to monitor and see that the Industry follows the rules. Now to trade other peoples money, regardless of if you solicate customers, you need to be a member of the NFA. If you do business with an FCM or IB you need to make sure that they are a member of the NFA. They need to see that you are too. If you are a member of the NFA, you need to pass the Series 3 and pays the fees and follow the rules. So you must be an Associated Person (AP) or a Commodities Trading Advisor (CTA). For those of you who want to trade other peoples money without a license...just remember this post if the account goes sour...and the investor makes a complaint to the CFTC. You see...they do not want people trading other peoples money out there that are not held accountable for their actions. You need to be trained and follow the rules. You need to have the proper documents and disclosures for the client to sign. These regulations are constantly changing and you need to keep current. You need to be subject to disciplinary action and or fines. If this were easy, then there would be a lot of 15 account traders out there. Do you know one? Who? Now, yes the industry is regulated heavily. But could you imagine the condition it would be in, without regualtion. It would be a bunch of hucksters taking peoples money and destroying the reputation of the Commodities Industry. It would be like a circus. Michael B.
I believe the previous poster is wrong regarding the exemptions to NFA membership -- he seems to think there are none. Check it out for yourself at the NFA website -- you can download their guide to membership.
Well, the exemption from the Licensing requirement does exist. But this thread is not addressing the casual trader, trading for friends or family, which is why the NFA has this exemption. I believe MarketSurfer to be a Protrader. He would be challenged by the CFTC as to his motives. Michael B.