Ok hear me out... I have a friend who went to a "full service broker" and got charged 80-120 RT for their tips... I have another friend who went to like online trading academy and their $5,000-$12,000 classes.... What if I were to set up shop and teach my method over a 2-3 week period for FREE and then all I ask is you trade through me for ($20-$40 RT) Why can't that work? Thanks
Honestly you should just set up a CTA or become an associated person of a CTA and hang your series 3 there. Then you can get paid on commissions but no where near that amount. Maybe $5 to $10 RT. You won't make any money doing that though. Why are you trying to make this harder then it is. Why not just set up a CTA?
A commodity trading adviser manages separately managed accounts and collects let's say a 2/20. Why would you just want to make a few bucks on commissions if you could earn a 2/20? The only reason you would want to earn a commission on the trade is if you were raising capital for another adviser. Then you would get a piece of "his" vig for placing the account and let him earn the 2/20.
Because in that scenario I still have to trade, no? I'm kinda new to this so excuse my naivete but doesn't make it make more sense to go the teaching route? If I can have an average of just 10 traders doing just 10 trades, that is $2,000 a day...Seems like a good idea...
No, it's not that easy. It doesn't work that way. There are three people in this equation. The investor, the manager and the broker. The broker gets the vig, the manager gets the fee and the investor gets whatever he gets. If "you" want to be the broker, someone has to be the manager. You could be both. But you would need to set up an IB with an FCM as well as a CTA. It's much easier to just set up a CTA and earn the fees.