Hello everyone who's reading this Thread. I would like to know, how and what needs to be done to open a Live trading Room where I can tell subscribed members to buy or sell based on my entries, I want to know the legal way where i don't break any law and if there is any exam or something i need to take to perform this. I know there are many live trading room exist i wonder how they do this model business.
In the USA there's a bunch of exams you'd have to take I reckon'. Depending on what you are proffering to your clients, I would guess either a CTA with commod futures exams, or the more rigorous series 7 for securities?
What im trying to do is open a room and share my screen to trade with other users with my calls to enter and exit, but i would like to know the legal way. which exams or what needs to be done. Only for futures trading.
If you want to do it the right way, you need to be able to provide proof via brokerage statements that you are profitable with your methods. Anybody can make calls, but only a few can back up their claims and calls with actual statements. If you can do that, you will be in the top 2% of all trading rooms right from the start. After analyzing the data from an investigation of over 150 trading rooms, mentors, and advisory services, we discovered that less than 5 of them can actually back up their claims with either brokerage statements or tax returns that show that they are actually trading themselves and profitable on top of that.
In the USA you need no exams for simply sharing your screen and showing your trading screens. However, there might be a specific niggle in there if you are specifically telling your viewers to take trade A, B, or C. Etc. I had a mentor for a few years with a lot of students who came into his trading room every day, 5 days per week, a few hours per day. We simply watched him make his trades. But never did he ONCE ever say, "Guys, take this trade here, now." We would simply watch him place his targets and stops, and watch how the trade panned out. His static website had the standard disclaimers. P.S. And to follow up on ye ol' @Baron comment there... He traded a sim account. We saw it, we knew it, he said it every single time it was asked of him. I once asked him on the phone the real reason he didn't do it with a live account, and while his answers to the rest of the crowd in text chat was the standard "Well, I'd get distracted and you really need to focus blah blah", on the phone he had an answer that was believable...Because he'd get caught up in all sorts of regulatory issues by showing the actual trading of a live real-money account in real-time. I did some digging on this issue and found some merit for the claim, the details of which I forget. To me it really wasn't important, because I did actually execute some of his sim trades exactly as he did, but on my real money account, and they worked just like his sim ones did.
I have no problem sharing my screen live trades without showing my indicator entry which tells me what and how to enter, also i have no problem sharing my statements
How are meir Barak's live trading room trades without issue? they always call out entry and exit how are they not in legal issue?
Because he states in his disclaimer that any information provided is for educational purposes only, and he says that nobody should actually use his information for trading purposes. Furthermore, his company is based in Cyprus, not the U.S., and is subject to the laws there, not here.