I'm looking to set up a Master Trading account linked to about 10 sub accounts. I want to be able to place trades that hit all 10 accounts evenly instead of having to manage all 10 accounts separately. Also each sub account would have their own Tax ID and be taxed separatly from the master account. Can this be done... if so which broker or software? Any suggestions are welcome. thanks, R
You can not have a master/sub account set up with each account having it's own Tax id. What you can do is SMA. Each individual entity opens their own account. You get trading authorization on each of the 10 accounts. You trade on one platform with post trade allocation. We do this all the time. Investors prefer SMA. Their account, their tax ID, their control. You have an agreement directly with them as to how you're paid. With 10 SMA, you might need to be registered as an RIA. Bob
If you allocate "post trade" what's to stop someone from giving a bit (or more than a bit) more profit to account A and a bit more loss to B?
rmorse, you must be talking about your firm as your info is simply not correct. easymoney, At IB you can certainly do that. The tax ID of the master or advisor has nothing to do with the sub-accounts. One could manage 10 completely unique or 10 unique and sub that matches the master as well. If you're a registered FA and want to grow larger than 15 accounts, take a look here: http://institutions.interactivebrokers.com/en/accounts/advisors/advisorsMain.php?ib_entity=inst For less than 15, the friends and family account will all you wan to do and more: http://www.interactivebrokers.com/en/p.php?f=friendsFamilyAccounts (make sure you click on the learn more tab for more info)
Def, 15 more or less is based on US regulations , no ? Is this not only for advisor and clients living in the US ? What If the advisor lives in the Netherlands and clients in Germany ?
thanks for both of your replies and info. Def - I see on the IB website, it only mentions stocks and options, I trade futures can post trade allocations be allocated for those as well? Also, I need a contact @ IB to help set up the details if so. thanks, R
Yes, all in one account and seamless. For us post trade allocation is really at the time of execution. you can allocate in numerous flexible ways and I think you'll be presently surprised at the quality of the portfolio managers reports that can be generated from such accounts. If you send me a PM with your location, I can either get back to you with a rep to contact or of you prefer, send me the contact info for me to pass along. thanks,
I understand IB allocates at execution but other firms seem to have to allocate post execution. If you allocate "post trade" what's to stop the account manager from giving a bit (or more than a bit) more profit to account A and a bit more loss to B?