CTA Startup

Discussion in 'Professional Trading' started by BGB, Jan 6, 2004.

  1. ellokn

    ellokn

    You would need an Introducing Broker registration with the NFA (unless you are an overseas IB) and IB relationship with an FCM(s). How and what is handled by the FCM is between you and the FCM.
     
    #81     Apr 10, 2006
  2. Would you need an IB registration even though one is a CTA in order to charge commission on top of FCM? I thought CTA's could do this.
     
    #82     Apr 10, 2006
  3. Truff

    Truff

    If you are a CTA then you are already an NFA member and a separate entity who can receive commissions. It wouldn't be a bad idea to become an AP of an IB, but you do not need to become an IB for this. I can direct you more if you'd like. Just send me a PM
     
    #83     Apr 10, 2006
  4. dabao91

    dabao91


    I currently execute through two different brokers and it isn't bad. The fewer the better, though. One nice thing the futures industry has to make things easier is the "give-up". If you have your account at Goldman Sachs and I want to execute through Man Financial, for example, I can ask Man to "give-up" your portion of the trade to your Goldman Sachs account. Your positions will be transferred from Man to Goldman that night. That way I can execute through my preferred broker and you can have your account at your preferred FCM.


    What is the procedure and how complicate to setup "give-up"? If you trade through Man Financial, how do you know the account balance of such account in Goldman Sachs? Would this become difficult to keep track if yoyr investor add/withdraw fund from the account with Goldman Sachs?
     
    #84     Feb 28, 2007
  5. dabao91

    dabao91


    Are you talking futures broker? Sure, most other brokers besides IB should be good for multiple accounts. They should have the capability so that you can execute one trade of multiple contracts and then have those contracts allocated to the separate accounts according to some allocation formula you set up beforehand.


    I notice that Interactivebrokers.com already supports allocation for multi-accounts. Does your above comment still true? Please advise me. Thanks.
     
    #85     Apr 1, 2007
  6. ChrisM

    ChrisM



    I`ve been trading my CTA through IB for last few years, obviously using multiple account allocation platform.

    Where do you get this idea ?
     
    #86     Apr 2, 2007
  7. dabao91

    dabao91


    Are you talking futures broker? Sure, most other brokers besides IB should be good for multiple accounts. ...



    I`ve been trading my CTA through IB for last few years, obviously using multiple account allocation platform.

    Where do you get this idea ?


    I have FF accounts with IB and have some sub-accounts. I was able to use account allocation too......
     
    #87     Apr 2, 2007
  8. dabao91

    dabao91


    Here are the CTA, CPO, and hedge fund accounting software choices that I know about...


    * Pool Accountant

    * Trade Depot

    * Advent Partner

    * ATPartnership

    * Captool Pro


    Which one is only for CTA?
     
    #88     Apr 3, 2007
  9. dabao91

    dabao91


    No, monthly performance fees haven't been an issue. We report our results monthly and provide monthly liquidity (chance for additions and withdrawals). Anything other than monthly fees would be confusing and difficult.


    What happen if your investor of your fund deposit their money before the end of month, do you paid interest to them? For example, if the investor deposit 100,000 into your fund account on 15/4/2007, at the end on 30/4/2007, you will allocate number of share based on 100,000 or based on "100,000 + interest"?

    (1) if you pay interest, would that be complicate to calculate?

    (2) if you do not pay interest, is there any investor complain?

    (3) What is the industrial standard on this issue?
     
    #89     Apr 3, 2007
  10. ChrisM

    ChrisM


    Most of your questions are answered in this position below:

    http://www.cme.com/files/CTAguide.pdf
     
    #90     Apr 4, 2007