Series 3? Series 65? Help Please...

Discussion in 'Forex' started by Buckie, Jun 21, 2008.

  1. Buckie


    Hi, my brother has a company that has a FXCM account. He has someone else managing the account for him. The account has been doing well and so now he has people who want to put money into his company's FXCM account.

    My question is that my brother thinks that in order to accept other peoples' money and put it into his company's FXCM account he needs an employee on the books who has their series 3 or series 65 license. So the though is that I would get the needed licenses and then he would hire me so he would be ok to take other peoples' money for investment. Neither of us really have any clue. I'm hoping someone will know or at least point me into the right direction to find help?

    Thanks in advance for any help you can give me
  2. c5eric


    Even with a series 3 he can't legally put the money in his own account without setting up a limited partnership for the investors. I assume he wants to earn something off of the investors in the account. The only way he could do that is to become an ib of fxcm and refer these investors to the managed accounts. Then he will get pip rebates for the trades in the accounts. FXCM will probably require a series 3 to set up the ib.
    I hope this helps.

  3. I'm assuming you're in the US so I don't know how much of this would apply as I'm in UK but the way I got around FSA regulation for managing clients funds was to lease them access to software which decides the trades to place on their accounts, in effect I'm not actually managing their money I'm merely monitoring the software and accepting clients instructions to place trades on their accounts according to what the software indicates. The FSA accepted that and exempted me from registration and regulation.

    As I say, it may not be applicable to the US but may give you some ideas if you're trying to find an easy way out without all the red tape, or it may be totally inappropriate if you're planning on doing everything 100% according to the book.