CTA Startup Costs

Discussion in 'Professional Trading' started by BGB, Mar 23, 2005.

  1. You mis-read the question but thanks for your response
     
    #11     Mar 23, 2005
  2. What is everyone here using for accounting? I'm going to run equities through my fund too, so I'm going to need layered accounting. Will probably use FundCount unless I can find something better. Looked at TradeDepot, but FundCount seems more solid (albeit slightly more expensive).
     
    #12     Mar 23, 2005
  3. Currently I don't use anything for accounting. I only have one fund at this point and it takes very few positions so it's not too much of a headache.

    Once I get my other fund going I am thinking about getting DMAXX for back office and accounting. At least I think it can be used for accounting. I'm not sure, though. I have to explore more options.

    If anybody here really loves their back office and accounting software I'd like to hear about it as I am going to need it soon.
     
    #13     Mar 23, 2005
  4. newbunch

    newbunch

    I just use Excel for my accounting. Took a lot of work to do it myself, but now it's totally integrated with my automated traded system in Excel using IB's TWS.

    BTW, CPOs have to be audited every year (rule 4.22(h)).
     
    #14     Mar 23, 2005
  5. ktm

    ktm

    My accountant uses TradeDepot, although the auditor had a harder time reconciling the outputs against IB's statements. I'm told it is the cheapest that does an acceptable job...no equities here.
     
    #15     Mar 24, 2005
  6. Banjo

    Banjo

  7. Banjo, any idea as to the cost? Right now this is what I have for the others:

    TradeDepot:

    Initial Fee: $2,000
    Annual Fee: $500

    FundCount:

    Initial Fee (small fund): $2,900
    Annual Fee: $1,560

    Advent Partner:

    Initial Fee: $12,000
    Annual Fee: $5,000


    No pricing for Sungard, SS&C, PT Plus, Princeton Financial Systems, HedgeTek, MPartner, Archway Technology, Backstop solutions, Tradar, DMAXX or the other one you mentioned. I think Tradar was like north of $30k or something though.
     
    #17     Mar 24, 2005
  8. BGB

    BGB

    Thanks to everyone for the very informative answers. Hopefully, we can keep this thread going and expound upon these answers as well as other info that might be of interest.
    I have another question to add. Assuming an emerging CTA managing $1-2 million to start and with 2000-2500 RT per million per year, what commission per RT would you expect a brokerage firm to agree to?
     
    #18     Mar 24, 2005
  9. Marco from Fund Count gave me an online demo of his software this morning. It looks pretty comprehensive. He also said he could customize it to fit any needs a client may have. I'm sure most of them do this but I thought it was cool.

    Anyhow, just thought I'd share that I liked what I saw and hope to be using it soon. The program really has too many features to mention here. If you "google" fundcount you should be able to come up with the web site and sign up for the demo.

    Just thought I'd share.

    ***Disclaimer
    I am in no way affiliated with the company mentioned above.
     
    #19     Mar 24, 2005
  10. Zemysto

    Zemysto

    I also would like to restart (or start?) the discussion about the location of a CTA or a CPO outside of the USA.

    Indeed, as I live in Switzerland and as I would like to set up my hedge fund offshore (probably in Cayman Islands), I also study the CTA and CPO regulations.

    However, I can't manage to find anything in the regulation frameworks linked to CTA and CPO which deals with the authorized (or forbidden?) locations outside or the USA to become a CTA or CPO.

    Is it possible in Cayman Islands? In Europe? In Switzerland?
    Is somebody not located in the USA ever had issues to become CTA or CPO? Or after?

    Thanks in advance for your answers.
     
    #20     Mar 29, 2005