trade friends money in canada

Discussion in 'Professional Trading' started by junkone, Sep 12, 2011.

  1. junkone


    i have been trading successfully for few months and a couple of my friends want me to trade thier money. since its small value, dunno how to do it legally. i might not be able to afford to consult a lawyer at the rate i am trading now.
    any ideas where i can start.
  2. seadog


    A couple of friends may not be a problem.Just keep it quite.
    Make sure they sign a document with the mandatory quotes.
    "Only invest the amount you can afford to loose."
    "Past performance is no guarantee of future results."
    It's called cover your ass.
  3. Shirak


    Interactive Brokers Friends and Family Account.
  4. newwurldmn


    They must acknowledge and won't hold you personally responsible for any loses. They will be responsible for commissions. The fee schedule to you must be very clear. Taxes will be paid by them. They cannot sue you for anything other than actual fraud.

    It's best to consult a lawyer. You are short a deep out of the money put, but it can ruin you.
  5. junkone


    what kind of lawyers should i consult for these ? the only lawyer i have spoken to was a mortage one before.
  6. newwurldmn


    there are hedge fund and financial advisory lawyers.

    i don't know of any specifically for canada, but you can google and search.

    the documents and contracts are pretty boilerplate. so if your accounts are small (< 25MM or so) you can probably even find some forms through legal zoom or the canadian equivalent.
  7. falcon


    Keep it simple. Call it a loan for say a year and split whatever you make then deduct the tax amount they would have to pay. Continue on each year.

    Also write something that says you will return all the capital + an agreed % rate if things don't go to plan.

    Nice and easy and you stay friends no matter what.