CTA - can you also trade equities???

Discussion in 'Professional Trading' started by SnookFishing, Aug 8, 2010.

  1. I am setting up as a CTA. I will be setting up an advisor account thru interactive brokers. I trade mostly Futures but would like to know if I would also be setup to trade stocks thru this platform (CTA and Advisors account) in the state of Florida.

    Thanks in advance.
  2. most likely need series 7 and register with finra.
  3. MGJ


    Ask your lawyer. Since you are setting up a CTA you do have a lawyer, yes?
  4. Yes, typically.

    But that ^ as they wrote your docs.
  5. No Lawyer. I did it myself.. My last step is to put together a disclosure document.
  6. In my dealings, I have formed the opinion that, for those unfamiliar to the process, meeting the requirements to becoming a Commodity Trading Advisor can sometimes be as difficult as becoming a profitable trader (and we all know how challenging that can be). CTA's must undergo a registration process with the NFA (National Futures Association) that those new to the NFA's ORS system and its registration requirements may find time consuming.
  7. heech


    If you're trading securities (including stocks), you have additional SEC regulations that you have to conform to, above and beyond NFA/CFTC oversight.

    If you're not doing this with a lawyer's help, then don't trade securities.
  8. If you are operating on the super cheap, then I guess go for it, but you would be wise to find an attorney with knowledge of the area. If you are going to run a business, like trading, do it right and spend money where needed for expertise.
  9. Why would a cta trade stocks? Makes no sense. Like a f1 driver driving a Kia on the track
  10. Thanks for the help guys. I do mostly trade futures but would also like to use maybe like 20% of the capital to carry a few stocks that look good for a longer term trade and would like to have that option open to me as well.

    As far as legal advise. At this point I just haven't needed it yet.
    #10     Aug 13, 2010