Starting futures fund

Hi all,

I'm starting to put together a managed futures fund for my relatives. I've only been trading my own accounts up until now, so I'm not very familiar with the best way to set up accounts so that I can manage a pool of money. Is anyone familiar with the proper way to do this?

Thanks,

RoughTrader

 

CTA license

 

Is a CTA license required to manage money even for relatives / family members?

It would really suck to get into trouble with the law on this one, so I want to be careful here....

RoughTrader

 

IB's Family and friends account. You don't need any licence up to 7 clients (depends on your state).

 

1. Check the NFA web site for the exemption requirements from the CTA/CPO registration requirements.

2. Consider setting up a limited liability company (LLC) as the fund and have your relatives be investors in the LLC.

3. Get an attorney to guide you through 1 and 2 above.

 

Agree with Pekelo. Use IB and an Advisor (Friends and Family) account. The IB trading platform is very powerful in terms of allocating a single trade into several sub-accounts. Each sub-account owner can access their statements daily either on-line or sent by email.

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

 

Most futures brokers can offer the 'friends and family' setup, aka a 'block' account. Just have to ask.

If you want to do it right, contact the NFA, contact a qualified attorney and CPA and start there.