Discussion in 'Prop Firms' started by hwgl365, Dec 12, 2007.

  1. hwgl365



    Guys I need some help I have been trading for a while out of my basement and im doing pretty good about six month ago I had one of my friend who wanted to learn trading and he joined me
    I helped him by teaching him everything I know and we had an agreement that I will put up the money for him so he can trade with my money and I charge him a commission
    He’s a good friend so everything was verbal however he got me another 2 friends to trade with us with their own money and I would like to charged them some kind of commission on the trading (or actually their volume) since im going to teach them everything and they will trade out of my basement as well however I am not a broker just a regular guy I can always open a company if need to but I know there’s some issues on actually charging the commission per share since im not a broker
    Can anyone help me let me know how I can actually charge a commission in a legal way?
    So I can do my taxes in the end of the year and declare everything legally

    Thanks for you help guys
  2. Datradr


    Instead of charging commissions...why don't you just charge them on a monthly basis for your skills that you are teaching them.. say 200 month or whatever on an on-going basis...

    that has got to be legit...although you would be inclined to report that income.. :)

    just curious what style you trade? technical? event driven?
  3. Just a word of caution, I wouldn't speak about charging "commissions" on a public board that is monitored 100% by Regulators and Compliance people. You cannot charge commissions if you're not a broker/dealer. Even our licensed affiliated cannot even quote commissions, FYI.

    (not trying to interfere, just trying to help)


  4. I think what you mean to say is you want to get reimbursed for all the soda and redbull your friends are grubbing while they trade their very own accounts separately in your home office?

    As the other guy said, tell them to pony up some snack money to cover those costs...
  5. this is under ''prop firms'' so i assume you'retrading at one.
    youshould be able to get referral or overrides from your firm.