IB Friends & Family: Legal agreement between Advisor & Clients

Discussion in 'Professional Trading' started by trend7rader, Aug 12, 2009.

  1. do you have/need some kinda license/registration for the LP? with the F&F account, which entity is running the master account ? or you just run it under a real person?
     
    #11     Aug 23, 2009
  2. Arjun1

    Arjun1

    I also have an IB F&F account. I'm only managing my own account and one account for a family member. I'm not charging any fees.

    I was wondering, how are adviser fees earned taxed? Does self employment tax apply?
     
    #12     Aug 24, 2009
  3. Stok

    Stok

    Yes, my CPA helped lay that out. Whether these is another way, not sure.
     
    #13     Aug 25, 2009
  4. Stok

    Stok

    Since I run a very small amount right now and only 2 clients, I do not need to be registered. Per SEC, under $25M and I think 15 clients, you don't have to register with them. But, state laws you may have to. I eventually will register at some point (I used to have those licenses in the past anyways).
     
    #14     Aug 25, 2009
  5. What kinda registration/licenses are we talking about here?

    I have absolutely no idea but would like to start, pls provide more info if you please.
     
    #15     Aug 25, 2009
  6. LEAPup

    LEAPup

    Series 65 or 66
     
    #16     Aug 25, 2009
  7. with series 7/66, you can open a LLP/LP and start a fund that manages friends/family's money?

    where can I find more info on it?
     
    #17     Aug 26, 2009
  8. Given the extremely high failure rate of traders, are you really sure you want to lose the money of your friends and family? The reality is, you are probably WAY overestimating your money management, trading and financial skills.

    You are asking people who probably don't much understand what you are exactly trying to accomplish, and you are more likely than not going to make them regret that they ARE your friend or family member.

    YOU (calling your little sister): "Ring, ring... " Hey, sweetie! Remember how I lost all that $31,000 it took you 3 years to save up from your job? because you trusted me? But I did not expect that false news report that extremists had seized a Pakistani nuclear weapon facility? And the market went down 20% in a few minutes and blew out my leveraged trading account? Well...

    YOUR SISTER: *click*


    This is one of the worst ideas ever...
     
    #18     Aug 26, 2009
  9. Nattdog

    Nattdog

    zones,

    The hypothetical scenario you mention seems to play to your own fears.

    We now understand why you would be afraid to manage money for friends and family.

    Great, as far as it goes.
     
    #19     Aug 26, 2009
    Kel108 likes this.
  10. the "hypothetical scenario" is pretty much happens to almost all small traders. Don't know if you checked, but few traders last long.
     
    #20     Aug 28, 2009