Fee based money mgmt question

Discussion in 'Professional Trading' started by runningman, Feb 25, 2006.

  1. What are the mechanics of setting up a fee-only practice with discretionary segregated customer accounts? For example, each customer gets their own account statement, but all trades are made on a discretionary basis by me and I am compensated by a 1% management fee. I have all relevant licenses. Do I need a firm to hold my licenses? What are the downsides of this? Thanks in advance.
  2. Thanks, that's very interesting. Does IB hold your licenses as well? Also, I presume if you have more than 15 clients, you need to register with the SEC, but what's the process to do that?
  3. runningman...are you a CTA?...will you be trading Futures?...Did you pass the series 3?

    If you are trading Futures only and assuming you passed the series 3....pay the 12oo bucks and your good to go...
  4. do you want to manage money in futures or equites ?
  5. I'm only interested in equities right now.
  6. Ok, if you have your series 65 then you can set up at IB and charge fees, if you register with your state securities division as an investment advisor.