Setting up Managed Account vs. hedge fund?

I have an individual who is willing to let me trade $1 million of their money (a non-US citizen with an SSN in NYC).

Has anyone here setup a managed account with a profit-sharing agreement and trading authority?

What are the steps necessary? How much does it cost?

I have a Series 7 license, is this enough?

What else? I think setting up a hedge fund is too cost-prohibitive.

Thanks,
EliteTraderNYC

 

All you need is love, I mean IB's Family and Friends Advisor Account and you are good to go.


http://www.interactivebrokers.ca/en/accounts/advisors/advisorsMain.php?ib_entity=ca

 

Thanks, do you know if they have profit sharing agreements or do I need to get that separately?

 

They do...

 

does this mean that 10 friends or family accounts are joint into 1 master account like a mutual fund portfolio? and any stocks purchased say 100 of Intel, are allocated to each account as per their proportion of the Master Account?

If that is true then it should help a lot in keeping mind focused on markets.

 

just curious
do you need to be licensed to run a managed account?

 

"Professional advisors that manage client accounts in excess of state registration minimums (generally 16 or more accounts and US $25 million in assets) must be registered under local regulatory law (e.g. Registered Investment Advisors (RIA) for US securities and Commodity Trading Advisors (CTA) for US commodities)."

 

Nobody believes in hedge funds anymore.

Go for managed accounts.

 

Thanks!
So if I have less than 16 accounts and <$25mm I don't need to be registered?

 

IB/TWS gives you numerous options for allocation. You can always do custom allocation, or you can program a fixed allocation percentage between different "client" accounts.