Discussion in 'Professional Trading' started by rmtrader, Jul 7, 2010.

  1. rmtrader


    I'm looking into ways to expand my trading career, and was wondering if anyone could give me some pointers as to which path I should look into... RIA or CTA? Here's my detail... I'm an equity options trader (premium seller), been trading my own account full-time for 2 years. I have basic knowledge about futures trading, but don't usually trade the instrument since my focus is mainly on trading options on broad-based indices and maybe a handful of individual stocks that I feel I could take advantage of vol skew.

    I want to give the money management business a try, but having trouble deciding whether I need to set up as a CTA or RIA. I like CTA for many reasons: easy to get started, transparency, cftc regulation, hedgefund-like structure (performance + mgmt fee), etc... BUT, I probably won't be trading futures or futures options, just equity options... so from that stand point, does it even make sense to set up as CTA?

    Also, can RIA charge a performance fee AND mgmt fee?? I see many RIA seem to charge only a standard 1% mgmt fee. Any info you can pitch in would be much appreciated.