Registered Investment Advisor

Discussion in 'Professional Trading' started by anthonyg96, Oct 29, 2006.

  1. I have been trading for over 2 years, have a great system and wanted to open up an LLC and start working on managed accounts, most of my system is based of currency and commodities futures. I have a series 3 and am working on a 65. I was wondering if I should become a Registered investment advisor, if I have to or if its worth it.
  2. My suggestion - consult a qualified attorney and tax professional. NOT the elitetrader message board.
  3. Contact brokerage/clearing firms until you get your question answered for your benefit, not that of the consulting attorney or accountant. Their knowledge won't do you any good unless you can find a firm that understands the nuances of the different types of discretionary accounts. Go that route first before looking for "experts".
  4. thanks nazz.
    Brown i figured i'd ask here thats what elite is for
  5. ssblack


    If you want the managed route then you should become a CTA.
  6. Yes, you can go RIA. There are beneifts to that. You are acting as a fiduciary for the client. What does that basically mean?

    1. You must put their interests in front of your's. (Duh!)

    2. You manage their money like they're orphan children, and invalid elderly folks.

    I have a 7, and 66. The 66 is a 65 and 63 combined. E-mail me with questions.
  7. JVM


    If you are trading only forex and futures instruments you do not need to register as a Registered Investment Advisor (RIA). RIA status is applicable if you are trading securities. Commodity Trading Advisor (CTA) registration would be more applicable since you are trading futures.