I have to agree regarding what a pain it is to be a CTA. I am still retrieving documents for them from an audit that took place in July 2007. From what my attorney tells me this is not very long for the NFA. Many of the documents and calculations have been explained to them on three or more occasions each time with supporting documents so that they don't forget. Inevitably they do forget, but it has become par for the course. I know another on this board who's auditors are attempting to audit performance numbers but are basically asking his accountant to do the work for them. They are lazy and incompetent. I am almost at the point of pulling my membership and only trading proprietary/non-customer accounts. It is honestly no wonder Sentinel got away with all they did. The NFA is by far the most useless organization I have come across.
I'm going to stick up for the NFA. They've always been helpful and responsive and my last NFA audit was professional and reasonable. Like any organization I'm sure there are better and worse employees and maybe you got the worse ones, but as a whole, the NFA is heaps better than having to deal with the SEC -- Ugh! I am so glad the CFTC has jurisdiction over CTAs. Now I just wish the CFTC could get a carve out from the 1933 Securities Act so CPO's could advertise their registered pools. Come on Chairman Walter Lukken, how about it? Good trading to you, Longview! Aaron Schindler Schindler Trading
Too bad that a CTA can't trade stock options or index options. You are limited to future and future options.
Aaron, I'm glad you have had a pleasant experience with them. I just know from my experience and the experience of another CTA/CPO that some of the not so good employees are way beyond not so good. I guess it all depends on who you get. Maybe audit two will be better. If I decide to stay this route. Still unsure. All the best.
Aaron - you know me and I have to say when I was a CTA and or associated with several different ones mainly as a principle etc. I felt differently than I do now, maybe out of fear I stuck up for them as you have. I can hear someone laughing now. I have lots more knowledge now of world happening's and can tell you the American business man is screwed as compared to other countries. Especially it is hard on the financial manager of US citizenship. I am really getting tired of foreign money management stomping all over us to the point I have joined them. My wife and I have often discussed how there may come a day when we have to leave the US. We have not brought any country up to our standards rather we have let other countries drag us down to 3RD world standards. The US is becoming a 3RD world. The government is totally out of control because we have created a complacent society of wimp's who are like cattle. A society that hasn't waken to the fact that the US is no longer the secure king of the financial world. Go to Germany and see how far a dollar gets you. As far as the NFA - they are incompetent children fresh out of school. They have been brain washed that you the CTA are the enemy and the lowest form of life. That you the CTA are personally responsible for their moms and dads not having enough money so that they can be a rich trust fund baby and not have to actually work for a living. You the CTA are the enemy of the US government and spend all your time down at The 5th Floor Members Restaurant smoking cigars and figuring out ways to screw someone. Most all of the money managers I know of any size have not only would I call it gone offshore but OUT/IN ANOTHER COUNTRY operations. Some even are in with the government and official's wheeling dealing and doing as they please. One day the US will wake up and have no money within it's boundaries. We are being milked dry and it's mostly the fault of the CFTC and the NFA. All done in the name of "Protecting the Public". Yea Right! "aka tha milk cow" MB Bit of trivia name the person who was found guilty of a felony but yet had strong enough political connections that he was able to obtain a series 3 license? Then you tell me the NFA aren't crooks themselves, see they have rules for you and me and different rules for the inner circle. Hint think Watergate.
Isn't that sort of the point, being a COMMODITIES trading advisor? The NFA/CFTC does not have jurisdiction over stock options. And if you want to trade index options, you can get options on ES, ER2, NQ, etc.
That was my point. Being a CTA, you can avoid all the tough regulation of SEC. But isn't it true that it is a lot risky to trade commodities (in general from my perspective). How come SEC make it so difficult to create something like "Securities trading advisor"?
Aaron: If a foreigner (non-resident alien) invests in a CPO, how will he be taxed? Will you withhold tax for his gain?
For us there is withholding of 30% on interest income and no withholding on trading profits (i.e. capital gains).
Quote from yip1997: Aaron: If a foreigner (non-resident alien) invests in a CPO, how will he be taxed? Will you withhold tax for his gain? For us there is withholding of 30% on interest income and no withholding on trading profits (i.e. capital gains). Hi Aaron, did you run this with a CPA, just to validate it?