i was wondering if you could give me some feedback. i am scheduled to renew my CTA in September of 2004. But the problem is that I just don't know if I want to remain a CTA WHY? here are a couple reasons. 1)i really don't like trading for lots of other people 2)the fewer people who know my profit status, the less pressure I put on myself. When I put lots of pressure on myself, I don't trade as well. 3)IF Im really sucessful, then why trade other peoples money. Trade more of my own money. Likewise if Im not sucessful, then im not going to have any customers anyway. 4)i could really eliminate alot of paperwork and bookwork for the NFA and CFTC plus it costs about a $1,000 a year. are there any other obvious reason to be or not to be a CTA. Any reasons why you haven't become a CTA.
Are you saying all registration costs amount to only $ 1000/year? What other expenses do you have that you wouldn't have if you were only trading your funds?
Pat, You have already taken your Series 3 Let the CTA lapse if you don't want to pay the $$ When you get over 15 clients (if you want to) you can register to become a CTA again
i have taken the series three and passed. other expenses would probably be web site costs, extra bookkeeping costs but the mental costs are the costs i fear the most. the fear of that guaranteed audit from the NFA/CFTC. Also the fear of losing my customers money. for example, my first 6 months were very profitable, I had one BAD losing month and I was just a basket case. the next month I made it all back but the fear of losing my customers money is just enormous.
What are your state regulations like? Here in Oregon you need to register as an investment advisor, put up a $10k bond, have a series 7, and have your CTA (obviously), and pay $1000 annually. Perhaps this is not correct, but it was the inderstanding I got from our state literature. Also, I don't believe they observe the 15 client rule here; if you're advising, you have to register.