I'm planning to solicit risk capital from a dozen or more friends & family spread across a few countries in Asia and several cities in the US. Most communication will be via phone and e-mail. We will us IB's simple friends & family service. Are there rules/regs I need to be aware about re: solicitation? Obviously I must tell everyone that the invitation is to them and select family/friends exclusively, and not a public solicitation. And of course there is a requirement to be scrupulously honest in all dealings. Thoughts, suggestions most welcome.
I'm hoping I don't immediately need such a structure, but simply trade the accounts for a pre-determined cut of profit. Obviously after my initial investors do well, I'd like to formally turn it into a small hedge fund, but I'd like to keep it simple for the time being. As for trading style, it will be discretionary across instruments and markets, much like a hedge fund. Of course I will describe my focus and style in greater detail to my investors, and will provide a monthly letter discussing results and prospects.
One of the worst ideas in history. Obviously, you need the money, so you have not really proven anything. You would be seeking outside money if you were any good. Second, F&F are likely to trust you, and with the 95+% who are believed to fail, that applies to you also. Therefore, the highest probability is, you are going to make them into enemies or disillusioned with you, as you having taken advantage of them.
If you are working with people you already have a business or personal relationship with then there is no worries soliciting them. You get into trouble when you solicit clients you don't already know. And I agree with TraderZones, trading family and friends funds is a huge mistake.
There are no rules for trading for your friends and family. don't listen to the habitual losers on this site. go for it, and good luck!
Yes, since you apparently have neither. When you have some, you realize that you don't risk their money like this. An enemy sees them as easy pickings. A friend defends his friends.
Talking SEC or CFTC govt regulation rules. THERE ARE NONE specific. Man, dude, you have a serious complex. I read your posts. It's time to seek guidance. Your brain is fried negative.