I want to setup some college kids to trade locally some futures markets. Any regulations I have to follow to stay in compliance? 10K increments.
I wish I lived near you....and was in college, I have been learning a method that I have complete confidence in for four years. Problem is...during those four years I was studying......I wasnt making much money and now have too small an account. I made seven percent trading OIH last week in about six hours, but seven percent of not much is even less. Yours is a very generous offer and I hope they appreciate how fortunate they are.
Spectre - that's a phenomenal idea you have! I hope you keep us posted on the progress from start to finish. I would call the NFA and see what they say. I'm sure there's some sort of regulations you'll be subject to, even if smaller in nature.
I am just guessing here, but if YOU open an account and give the password to the kid to trade, nobody is going to be the wiser... After all it is your money... By the way, what is the purpose of the experience? Do you give them guidance, or teaching?
First of all, the regulators can kiss my ass, but beside that, why is it their business how I screw my own money? And why or how would they find out? If I pay the taxes on the possible gains and decide to share the profits with the kids, it isn't the regulators' business...
Why not set up the Spectre Foundation as a non-profit, offering trading facility and funding to deserving students? Other than that, an individual can "gift" up to 10K to any one or many without tax or other implications. The total of all gifts combined cannot exceed 10K annually. If you maintain "control" of the funds then it is not a "gift" and the IRS will be involved to be sure, and depending upon the usage and your personal involvement regarding the funds, other governmental agencies as well. Speak to an accountant... I think there is a way for all involved to benefit from this generosity. It depends on structure, imo. Osorico
By "college kids" do you mean giving them an internship? Or do you plan on hiring them out of college? I have been thinking about doing the same thing. One thought was forming an LLC. Having multiple accts under the LLC and hiring a few traders. I would pay them a salary and a year end bonus based on a % of their profits. But maybe having a few summer interships would be a good idea too. To aspiring traders: Please don't PM me for trading capital unless you live in upstate NY (capital region). This isn't going to be a remote operation.