The funds can only be traded from a Client account, not the FA account. So, you will need to have a Client account for yourself if you wish to trade for your own account, plus Client accounts for the F&F members.
I have opened an advisor account and want to bring in a U account from a familiy member currently with Ameritrade. Does he have to open his own individual accoun, do an ACATS first and then I can invite him, or how does it work. Thank You
Just have him open a sub-account (either punch in his info or just email him the forms to print and fill out) and fund it via an account transfer. SSB
I just want to clarify this statement above. The actual trades are done by logging in under the FA account, but the funds used for trading reside in client accounts. You cannot trade with funds in the FA account (they're only used for market data subscriptions if required) and will need a client account to trade for yourself.
This is a query concerning how futures positions are allocated in an IB F & F advisor account. If the trader/advisor operating the master account scales in and out of futures positions, can a simple procedure be devised to allocate positions among sub-accounts with different balances? Example: Sub-account A $100,750 Sub-account B $160,050 Sub-account C $550,250 The advisor sells 1 ES contract at 1300, then 2 ES contracts at 1295, and finally 4 ES contracts at 1290. Can a practical allocation system be devised for these transactions, as well as all similar futures positions which cannot be precisely divided up? For instance, can it be done this way: n*3 (multiples of 3) contracts are always allocated equally among all sub-accounts, and the remaining ones to sub-account C? I'd appreciate it if an IB rep could provide some pointers on how futures position allocation is done in practice, including suggestions as to how odd fractional positions can be handled.
Yep, wws,this is also my concern. If all funds is still in client account, and can't put into a pool so you have to divide then deliver the position to every clients. somehing this is not in units, could be 0.3, 0.6, 4.7 contracts. is this possible???
In the end each position needs to end up in a single account. So you can't buy 1 futures contract and split the gains/losses over multiple accounts. The only way to do that would be pool the money into an LLC or similar entity then have that entity do the trading. Then again maybe you can find a broker that would do what you're asking, but I doubt it.... I personally use allocation profiles by ratio, so for example 7 contracts would be allocated as 3 to one account, 2 to another, and 2 to a third. SSB
Can this IB advisor model pool the money together?? If so, this is big problem for futures traders, especially scale in and out strategy. If I have 10 clients, and one long one contract, so total is 10 contract, and I get out 2, thing like scale out to reduce risk,, then how can I put these 2 flat position into clients. This is sucks!! Thanks!
As I said, if you want that ability you need to pool the money into an LLC. <i>This is sucks</i> Show me a broker that can do this. If you are trading futures without enough capital to scale in/out appropriately maybe you need to explore other trading vehicles until you have enough capital to use futures. For example options exist to mirror most if not all futures contracts, and now there are even ETFs for some commodities (silver, gold, oil). SSB
I probably have to choose trade YG, i.e. mini-sized gold. I have some account with balance $5000. by the way, what is LLC? and do you know LLC that can do trading pool? Thanks agains