How do you legally trade/manage other peoples money?

Discussion in 'Professional Trading' started by orbit23, Feb 18, 2020.

  1. MrMuppet

    MrMuppet

    It all depends on the question if he takes a fee for managing the funds or not. If he gets paid, there is no way around a license
     
    #11     Feb 19, 2020
    wrbtrader likes this.
  2. Fonz

    Fonz

    I opened an LLC for the family. I am the manager of the LLC and the trader and investor for the LLC. I don't charge anyone inside the LLC, even if I legally could ("guaranteed payment" for managing the LLC, not for managing the "fund"). No need for a licence that way, here in the US. After all, if you do that you are somewhat successful and don't need to charge friends for services. If you want do have a track record, I sincerely don't think trying with family and then charging them would be great.
    Best!
     
    #12     Feb 19, 2020
  3. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    If this is on the futures side of trading, I can give you the step by step of how to do it along with some very valuable insight along the way.....
    Let me know, PM me either way.
     
    #13     Feb 24, 2020
  4. panzerman

    panzerman

    How do you then monetize your time and efforts? Are you expecting to get it back through inheritance?
     
    #14     Feb 24, 2020
  5. Fonz

    Fonz

    No, not through inheritance :D
    Trading is my passion and I am fortunate enough to make money with it.
     
    #15     Feb 24, 2020
  6. RedSun

    RedSun

    Europe may have different rules. But in US, if you have very limited number of clients and they are small accounts, you probably do not need license. But you better look at the state requirements.

    The IB Friend and Family account structure is a very good way to do it. It is very clean accounting-wise. The money is not co-mingled with any other clients.
     
    #16     Nov 8, 2021
  7. still don't get why would you trade for another person? I mean, if your results are THAT good, why wouldn't you do it for yourself?
    or is it just curiosity or passion for trading?
     
    #17     May 18, 2022
  8. I think because trader is not always RICH capitalist he must to paid this that.....,morgidge,rent,leasing all bill a lot of money then after it he became naked again ,like in market every day when you start in morning .When you borrow a capital you start count how much you made then they send you money you paid your bill,and circle again and again....You dont save money
    ---you will never have BIG solid account to trade without stress.That is my opinion,I know few trader people like that. e mini sp500 trader and forex trader.
     
    #18     May 21, 2022