Hello fellow traders - what are the things one needs to do before he starts trading for a CTA? 1. Clear Series 3 exam 2. Get an approved ddocs from the NFA. Anything else?
Nope. You can register as a Sole Proprietor with the NFA and that is sufficient. No need to register an LLC or form bank accounts or any of that stuff. However, if you register as an LLC and have bad performance, you can leave that behind if you want to try again with another corporation.
That's completely untrue. Registered CTAs must disclose the performance of ALL ACCOUNTS THEY HAVE DIRECTED PERSONALLY, OR AS A PRINCIPAL OF ANOTHER FIRM (Corp., LLC), with the exceptions of: -Personal accounts -Family members' accounts. To start a CTA you need to registered with the CFTC and become an NFA member, if you plan on soliciting publicly. YOu will need a Series III license, and get your DDocs approved by the NFA, which will take 2-6 weeks depending on how badly you've written them. Altogether, there is a low barrier to entry, which I think is distinctly American; and investors receive the surety of keeping their funds, in their name, at the brokerage of their choice. Hope this helps... Good luck with your company.
Okay. I thought there would be a requirement for some securities or commodities business license as well. Glad to know that's not required.