Can I manage clients accounts as a trader?

Discussion in 'Professional Trading' started by Im Bullish, Dec 8, 2009.

  1. I've been a prop trader for the past 4 years - I'm wondering if its possible to start managing other peoples accounts instead of my own? Obviously I would charge a management fee for this service....

    If so, what firms are best for this?
     
  2. There have been previous posts on this subject and the consensus was IB.
     
  3. This reads more like a mission statement than a question. There are a number of legal, business and other issues to worry about.

    And frankly, the biggest problem seems to be, no matter what you do, it is unlikely that people will direct their funds towards you in any size.

    And if you are targeting friends and family, it is a rotten idea.

    There are a number of threads bouncing around like this, you should research them. Seriously. You are asking a question that gets asked every week or two here on ET.
     
  4. Just make a phone call. Your broker knows how to set up what you want.

    He will handle all the paper work as well. If you keep it simple, you can remain an amateur.

    Periodicaly your broker will send you a questionaire and you do a check off and maintain the status that is appropriate.

    Informally, you can let your broker know its okay for him to coattail trade if that is okay with you.

    Often broker will hook you up with others who want to grow capital but do not want to be active in doing so. It is a win win for everyone.

    Most brokers will spread the trades around fairly (among those whose limited POA's you are using). And all you have to do is work directly with the trading desk to save keeping others in the loop.

    Boutique firms specialize in working with aggressive traders and agressive trading strategies. It is not a "big IB" kind of thing. Check out some of WJO's protogeges.