So, you know, I've been reading the Wall Street Journal and watching Bloomberg for a few years now and I've read Von Mises and all kinds of other stuff and etc.... I heard about IB's friends and family account and I'm wondering if I could get paid for recommending stocks. I want to do this part time, and I'm not interested in looking at charts, I'm just looking at what stocks I think are going to be doing well or at least holding most of their value in a decade or two. So I kind of want to know if this is even doable, and also approximately how much I can make with fewer than 15 clients who don't have millions to invest, and also if I can mention to strangers that I do this and offer my services. Thanks for any responses.
How are your sales skills? Because that's what it is. 15 clients start out slow but at 1% gross over the years that's well over 15 million. But you need to be a people person, especially in the lean years. Friends and family doesn't sound right but I'm no expert and it's relatively new compared to plain old RIA which is what you are describing. Research more Registered Investment Adviser. That was the old way, ask if it is still the best route. Not much to it. Need a license, print some business cards and go out and get customers.
I believe you will need to be registered to do securities. But not to trade futures on " friends and family" acct. which is really backwards. But anyway this is ELite Trader where dreams come to die so some snark will just tell you it won't work. I hope you make something of this, check with IBKr for specifics
To determine if you need to register with your state as an RIA , you need to refer to your state securities laws and look at the exemptions. As an example, these are the Investment Advisers FAQs from NY State that are found on the website for the Attorney General of NY. Each state will have their own FAQ. You need to first look at where your place of business will be, then check where your clients reside. https://ag.ny.gov/investment-advisers-faqs Bob
IB's Friends&Family FA does not permit any fees/$$-flows to go to the FA. While recovery of other fees (permissions/data/news/etc) can be jiggered with the FA account,"FA-*generated*" fees re-class the account as Professional, the client accounts are no longer Friends&Family, and the FA will be paying Professional fees ($100-$200, versus non-Pro of $0-100). It is a simple distinguishment, but I have yet to see IB make it plain. (I could be way-wrong -- I think the whole deal was a Ready-Fire-Aim project, which I would happily endorse, but it's been a while, too.) Series 65 after reviewing your state -- and don't expect clarity there, either.