We have some clients that use IB for the friends and family setup. They say it works great. If you want to be able to charge fees though automatically you have to be registered as a professional. I don't believe you need a license though unless you are managing over 400k or 15 people.
(Just a thought that I've helped dozens with). Instead of borrowing money and risking relationships..especially just for only $3mil in BP, why not consider putting up $50K or so and use our capital (or other similar firm), and keep 100% of your trading profits? Since you're only being paid on profits anyway, why not keep 100%, and not have a dozen people watching your every move. Save a bundle on legal fees and taxes, etc. as well. Just a thought... Don
if you are doing futures trading, if you do not generally hold yourself out to the public and advise 15 or fewer accounts, you do not need to register as a CTA. see the NFA web site for details.
'consider putting up $50K or so and use our capital' How much buying power would $50K get with your firm. Is there a minimum requirement to conduct number of trades or one can just do position trading and be content with 25% return for the year.
I doubt this would work for him, since it would be HIS money($50K) he would be losing instead of his clients/friends!
No minimum trading amount required. Fees get lower as you trade more however. As far as BP is concerned, it's more about overall risk. We tend to slow people down around 30 to on overnight (hedged, of course). 25% on a Million is better than 25% on $50K of course, LOL. Don
Hello Don, how would I go about setting that up (put up $50k of my own money, and get acees to $3m?). Hans
Thanks everybody for replying to my post. This has been very helpful. As I understand it now, the amount of profit sharing partners can't exceed 15. Does anybody know about particular regulations in California? Hanniss