If the broker is holding your license then the broker is 100% liable for your actions. It doesn't matter who you execute with. The regulatory issues are your broker's business. This is really easy for you to find out though. Whoever is holding licenses, just call compliance and ask them. If you are not registered yet, call the firm you are thinking about working with and ask them. You can't register yourself so you will need a broker.
can you take client as a unregistered IA if the client works for an investment bank and needs to satisfy all the compliance issues?
http://www.investmentnews.com/article/20110515/REG/305159971 "The Securities and Exchange Commission last week proposed a rule change that would require âqualified clientsâ to have $1 million invested with the adviser or a total net worth of at least $2 million before the adviser could charge a performance-based fee. Currently, advisers can charge a performance fee if they manage at least $750,000 of a client's assets or if the client's net worth exceeds $1.5 million. "
Sounds like you are not really keen to trade but tempted by the funds and asking for alternative ways to have a guaranteed principal + good returns without speculation. What if all your accounts are in a broker that is 'frozen' suddenly like this week? Maybe they will refund your principal but not the good returns portion after sorting out in a decade. Nowadays, there is no way out except to be "the tourist"
Try this: "I have friends and family who would like to benefit from my success and get rich off my back without doing anything themselves." Now why would you want to assist them in doing this? You take all the risk and if a profit is made they get to benefit. They are paying you in cents and expecting change in dollars. Simple answer: make your own fortune independently from the market and do not consent to parasites and suck ups trying to get a free ride on your back whether they happen to be your relatives or not.
FYI, The state that you live in will sponsor you to take these exams (series 7, 65, etc...) just call the correct state office. By having the state sponsor you that frees you to choose any broker you want. You aren't locked in to any higher priced broker. I choose to use IB.
I have been trading for neighbors and friends since 2006. The trading has had some major ups and downs since then. I told everyone up front though that only to trade money they don't have to count on and I may lose their money. Overall, things have worked out well for them though. In order to keep them informed I send emails on trades etc....and they can login to their account anytime they want. Nothing is comingled at all. So that keeps the phone calls and emails to a min. We all consider ourselves good friends and are in constant contact with each other. I am sure there are people out there that are horrible to deal with but my experience has been great. I consider them my very best friends. I don't understand the people here who say that you will lose your friends and family if you trade for them. You guys must have some pretty crappy people as friends.
shorty, maybe the conclusion is that you have been an exceptional trader and your friends know and appreciate that fact. It's not about 'crappy' friends, it's about human nature. Looking at the responses on this thread and others in the past, your situation would appear to be somewhat remarkable.
I guess I hit it lucky cause there were some time in the past where there were some really big dips. They had concerns, as I did, lol. But nothing major out of the ordinary. Btw, thanks for your contribution to this interesting thread. Some good discussion here and helpful.
set up a 50/50 partnership in both names. They loan you 50% at x%interest only. Usually the trader is the poor one and needs money at least to pay taxes, whatever you take out, you send the exact same amount to the non trading partner.