BEST SETUP: To Invest Other People's Money

Discussion in 'Professional Trading' started by bob2007, Aug 22, 2016.

  1. bob2007


    What is the best setup to manage other people's money without large regulatory costs?

    1. Private Corporation
    Can I set up a corporation under the investor's names (under 50).
    Hired by them to run the investments.
    Get paid a salary by them at the end of a year / bonuses approved by the board of directors.

    This avoids the 100k investment minimum of high net worth individuals.

    2. Based on my understanding of the laws in USA / Canada.
    Also consideration for other countries.
  2. This has been rehashed on dozens of ET threads. Try a search or two.


    Over the years I've managed money for a half dozen people I know. They merely opened accounts where I was trading and then they gave me trading authorization. I wasn't doing it for $$$ though. My optometrist friend gives me free eye exams and others do small things for me but I was never in it to make $$$ off of them.
  4. bob2007


    That would be the easiest way.
    I'm not sure if that's legal for people less close to me, like strangers.
    Cause then I'm acting as a broker / regulations on that.


    I'll play devils advocate .. WHY would 'strangers' want to give you money to manage? Do you have a track record over a number of years that has been confirmed as legitimate?

    In my case it was friends mainly who knew I had been trading for a number of years and they trusted me since they knew I was making a living. So I didn't show them any stats on my year to year numbers. And I turned down some of them wanting to give me a LOT of $$$ since I didn't want to put too much pressure on myself with too much money to trade. And I sure as heck didn't want to possibly ruin any friendships if I were to lose $$$ for them.
  6. poorboy


    Good luck finding investors. They constantly accuse you of trying to scam them. It gets old really fast. They are stupid about it too. It does not matter what docs you show them, what your track record is. Also, advertising for investors brings on regulatory hurdles.
  7. bublu


    I think it really hard to find out investors these days because no body lets others to trade on their behalf so let see if you can find any.. Good Luck!
    poorboy likes this.