If I were to open an account with Interactive Brokers and was a CTA... What are the requirements needed for me to manage other people's money? Obviously with all this nonsense surrounding money manegement scams, I think that the best way to convince people that at least their money is safe from fraud would be to have them open an account at IB (or any other big broker) and trade for them. Does anyone know what types of fees I am allowed to charge for trading other people's accounts? I'm pretty serious about this and will probably have some other questions so I would definitely appreciate comments from those with more experience and knowledge. Thanks in advance.
No CTA I know has their clients open at IB. IB isn't even a clearing firm for futures. They use RJO Brien. Clients will pay whatever fees you can persuade them to agree to. Individually managed accounts are very attractive to shrewd investors. Anything with the word "fund" or "pool" should be avoided, these days.
Real quality information there. IB is a clearing member of the CME, CBOT and other futures exchanges.
Thank you for that post... I was thinking IB because I wanted to do a variety of products...I wanted to be able to day trade ETFs, and also trade index futures or currencies... Is this not a viable idea for generating more profit for the client and more fees for myself?
Ummmm, no. I do stand SLIGHTLY corrected. IB is an FCM but I don't think they're a clearing FCM. Here's from the NYMEX website for Member Firms: Clearing Members & Member Firms A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | R | S | T | U | V | W | Y A ADM Investor Services, Inc. New York Mercantile Exchange Clearing Member Arthur E. Mittnacht III 140 Broadway, 23rd floor New York, NY 10005-1101 Tel: 212 785-2200 E-mail: amittnacht@admis.com A.G. Edwards & Sons, Inc. New York Mercantile Exchange Clearing Member Peter A. Biebel, VP Manager Futures Department One North Jefferson St. Louis, MO 63103 314-955-3050 314-955-7432 FAX E-mail: pabiebel@agedwards.com Gary Rizzi, VP NY Floor Operations A.G. Edwards & Sons is a full-service investment firm that has been in operation since 1887. The firm is based in St. Louis, Missouri, and has over 700 branches nationwide as well as international offices in London and Geneva. A.G. Edwards & Sons is a member of all major domestic futures exchanges and the National Futures Association. AIG Clearing Corp. New York Mercantile Exchange Clearing Member AIG International, Inc. COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm Allston Trading LLC COMEX Division Non-Clearing Member Firm Arbitrage LLC COMEX Division Non-Clearing Member Firm Arctos Capital, LLC NYMEX Division Non-Clearing Member Firm Asarco, Inc. COMEX Division Non-Clearing Member Firm William L. "GUS" Paul 180 Maiden Lane New York, NY 10038 (212) 510-2000 (212) 510-2122 (fax) wpaul@asarco.com http://www.asarco.com Asarco, Inc. is one of the world's leading integrated producers of non-ferrous metals, principally copper, lead, zinc, silver, and molybdenum. Asarco, Inc. also produces specialty chemicals and aggregates. back to top B Banc of America Securities, LLC New York Mercantile Exchange Clearing Member Bank of America, NA NYMEX Division Non-Clearing Member Firm COMEX Division Non-Clearing Member Firm Barclays Bank Plc. COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm Barclays Capital, Inc. New York Mercantile Exchange Clearing Member BASF Catalysts LLC COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm Bear Stearns FOREX Inc. COMEX Division Non-Clearing Member Firm Bear Stearns Securities Corp. New York Mercantile Exchange Clearing Member Birch Brokerage Company, Inc. COMEX Division Non-Clearing Member Firm Bluefin Energy, L.L.C. NYMEX Division Non-Clearing Member Firm Bluefire Capital LLC COMEX Division Non-Clearing Member Firm BNP Paribas Commodity Futures, Inc. New York Mercantile Exchange Clearing Member Michael Ferguson 787 Seventh Avenue New York, NY 10019 (212) 841-3333 (212) 265-6899 (fax) mike.ferguson@americas.bnpparibas.com http://www.cfi.bnpparibas.com BNP Paribas futures is a leading provider of energy clearing and floor execution services on both the New York Mercantile Exchange and in London. BNP Paribas futures is a member of the Paribas Group, one of the world's top 25 largest financial and banking institutions. BP Corporation North America, Inc. New York Mercantile Exchange Clearing Member Britannic Trading Ltd. NYMEX Division Non-Clearing Member Firm BUCC Trading Corp. New York Mercantile Exchange Clearing Member (Inactive) back to top C C & C Trading, LLC COMEX Division Non-Clearing Member Firm Calyon NYMEX Division Non-Clearing Member Firm COMEX Division Non-Clearing Member Firm Calyon Financial SNC COMEX Division Non-Clearing Member Firm Canadian Imperial Bank of Commerce COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm Cargill, Inc. COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm Chevron, USA, Inc. NYMEX Division Non-Clearing Member Firm CHS, Inc. NYMEX Division Non-Clearing Member Firm Citigroup Derivatives Markets Inc. NYMEX Division Non-Clearing Member Firm Citigroup Global Markets Inc. New York Mercantile Exchange Clearing Member Commerzbank International, S.A. COMEX Division Non-Clearing Member Firm Cowen and Company, LLC COMEX Division Non-Clearing Member Firm Coral Structuring, L.L.C. NYMEX Division Non-Clearing Member Firm Credit Suisse Securities (USA) LLC New York Mercantile Exchange Clearing Member Firm Tel: (212) 325-7566 Fax: (212) 743-5976 Email: Tom.Lehrkinder@CSFB.com Crown Commodities, Inc. COMEX Division Non-Clearing Member Firm Kevin Kline One North End Avenue, Box 836 New York, NY 10282 (212) 590-4050 (212) 590-3513 (fax) Gold and silver brokerage operation. CTC Energy, LLC NYMEX Division Non-Clearing Member Firm back to top D D.E. Shaw Plasma Portfolios, L.L.C. NYMEX Division Non-Clearing Member Firm Deutsche Bank AG COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm Deutsche Bank Securities, Inc. New York Mercantile Exchange Clearing Member Dorman Trading, LLC COMEX Division Non-Clearing Member Firm Dresdner Bank AG COMEX Division Non-Clearing Member Firm DRW Commodities, L.L.C. NYMEX Division Non-Clearing Member Firm DY DX Trading Corp. COMEX Division Non-Clearing Member Firm Dynegy Marketing and Trade NYMEX Division Non-Clearing Member Firm back to top E Eagle Futures, Inc. COMEX Division Non-Clearing Member Firm Emerald Trading Group, L.L.C. COMEX Division Non-Clearing Member Firm back to top F Fat Trading, LLC COMEX Division Non-Clearing Member Firm FC Stone, LLC New York Mercantile Exchange Clearing Member John Hahm 170 Broadway, Suite 814 New York, NY 10038 (212) 766-0100 Fax: (212) 766-0631 chrisg@fcstone.com http://www.fcstone.com FC Stone is a futures commission merchant with clearing memberships on all major U.S. futures exchanges. First Derivative Traders LP COMEX Division Non-Clearing Member Firm (Options Member) Fortis Clearing Americas LLC New York Mercantile Exchange Clearing Member Fortis Energy Marketing & Trading GP NYMEX Division Non-Clearing Member Firm back to top G Gamma Traders â I LLC COMEX Division Non-Clearing Member Firm Gator Trading Partners, LLC COMEX Division Non-Clearing Member Firm Gelber Group, LLC NYMEX Division Non-Clearing Member Firm COMEX Division Non-Clearing Member Firm Gerald Metals, Inc. COMEX Division Non-Clearing Member Firm Paul Werner 140 Broadway New York, NY 10005 (212) 607-3400 (212) 607-3485 (fax) Gerald is one of the oldest and most active clearing members specializing in executing and clearing futures and options for energy and metal companies worldwide since 1978. Glencore Commodities, Ltd. NYMEX Division Non-Clearing Member Firm COMEX Division Non-Clearing Member Firm Glencore Ltd. COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm Goldman, Sachs & Co. New York Mercantile Exchange Clearing Member Michael Dawley 85 Broad Street, 25th Floor New York, NY 10004 (212) 902-7582 (212) 357-2435 (fax) michael.dawley@gs.com Greenwich Capital Markets, Inc. New York Mercantile Exchange Clearing Member Great Lakes, Inc. COMEX Division Non-Clearing Member Firm Growth Management Capital Corp COMEX Division Non-Clearing Member Firm back to top H Hanley Group LP COMEX Division Non-Clearing Member Firm H & M Trading Co. COMEX Division Non-Clearing Member Firm (Options Member) Hess Energy Trading Company, LLC NYMEX Division Non-Clearing Member Firm HSBC Bank USA COMEX Division Non-Clearing Member Firm HSBC Securities (USA), Inc New York Mercantile Exchange Clearing Member Hudson River Futures, L.P. COMEX Division Non-Clearing Member Firm Carlos Perez-Santalla One North End Avenue, Mail Drop 977 New York, NY 10282 212-590-3585 212-590-1575 (fax) hrf@pobox.com back to top I Infinium Capital Management, LLC COMEX Division Non-Clearing Member Firm Intrade LLC COMEX Division Non-Clearing Member Firm International Trading Group, LLC COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing Member Firm back to top J J. Aron & Company COMEX Division Non-Clearing Member Firm NYMEX Division Non-Clearing ................... As you can see Interactive Brokers is NOT there (under "I"). Bone, You should generally let your clients open account at whichever clearing firm THEY prefer unless you have an exclusive arrangement with an FCM. Some FCMs will feed you accounts if they like you, in exchange for your (hopefully high volume) business. GL!
TWO things could help you immensely: #1 - your bona fide track record directing accounts (NOT your own prop; could be a relative's with POA, etc.) #2 - Your salesmanship & ability to build personal relationships with real people....investors who need help navigating these markets & want solid investments that are uncorrelated with Stocks.
I was looking for a one-source shop where I can trade several financial products. But most importantly, I wanted to be able to trade from one trading screen (master account) and then have the profits appropriately split amongst the client accounts. I think that IB is the only firm that I know of that can offer me such variety of trading options and convenience of master account trading... Or am I mistaken? Also, are you saying that as an Intro-Broker, I can charge clients not only a mark-up on commissions charged by the broker but also a percentage of trading profits? Would trading profits have to be paid for directly by my client to me via check, wire, etc. or is it possible to have a broker (such as IB) debit their customer account the agreed-upon trading profit fee and have that directly credited to my master account? Sorry for all the questions......
Your questions are a pleasure while I'm waiting for a fill. MOST respectable FCMs will "allocate" your trades among your client accounts in a FIFO, first in first out basis, or otherwise. You can trade from a "master" account or OMNIBUS account. It's quite simple, actually. You'll have to decide what your INCENTIVE FEE is & what your MANAGEMENT FEE is (if any). ****** I can't stand these amateurs who lick IB's bunghole. The cust. service sucks. Cheap comm. doesn't matter when your screen doesn't show your fill on 50-lot of crude. OKAY, from CME Group's website: Click this link to see WHO CLEARS & who doesn't: http://www.cmegroup.com/tools-information/clearing-firms.html
http://www.cmegroup.com/tools-information/clearing-firms.html Scroll down... ever hear of Timber Hill LLC? And being NYMEX is a division of CME Group, well...you know. What is it with you IB bashers and your inaccurate "facts"? You are worse than politicians.
I did not state that IB was a NYMEX member. IB owns Timber HIll and Timber Hill is a clearing member of the CME, CBOT and other futures exchanges (I don't have the full list). See: http://www.cmegroup.com/tools-information/clearing-firms.html