CTA Establishment - Advice

Discussion in 'Trading' started by Palindrome, Jan 17, 2018.

  1. Palindrome


    Would it be idiotic to try to start a CTA with less than $500,000 in starting capital?

    I read on a website that these are the general costs (not that much money in my opinion).

    What other approximate costs would I be looking at?

    I figure why not get your performance published, and hope to gradually attract assets as your trading results yield more capital and slowly add investors.

    Itemized costs, am I missing any other major costs?
    • NFA Registration $1,100
    • Fingerprints: $10
    • Series 3 Exam Fee: $120
    • Series 3 Study Materials: $100-$300
    • Hiring Regulatory Advisor: $4,000 – $7,000
    • Regulatory Advisor: if you hire a firm like this they will also likely assist you with performance reporting and accounting services which will create ongoing monthly/quarterly costs for your CTA. Again, you can do these things on your own but I would suggest against it.
  2. Robert Morse

    Robert Morse Sponsor

    I say go for it if your returns are good and you are willing to put in the work to market yourself. You will have to add the cost of travel to get to the CTA events when you have your track record. Let me know if I can help in any way.

    It is not a lot of money to start a business. Even a food truck can be $65K.

  3. Palindrome


    Thanks for the advice, I just might do that.

    Question, are there any other major costs that I am not missing?

    For a small fund, it only costs between $4000 and $7000 a year for basic audits/reporting etc? Or am I looking at 50k a year to operate through regulatory/legal/accounting etc?

    I'm sure the answer is...it depends.

    Curious if there are any major ongoing operating costs, or are they pretty manageable.

    Thanks again
  4. Robert Morse

    Robert Morse Sponsor

    Turn key has done this many times. they would be a better source of the cost,

    Happy to talk tomorrow. I'm up early--4am.

    Good night,