Recent content by yip1997

There is no volume requirement. [edit] TOS and TDAmeritrade both gives me 0.75 per contract without any volume commitment. BTW I can't get a lower future commission rate from TOS.

I have TDAmeritrade, and they waived my transaction fee.

When it is close to expiration date, the greeks are not accurate. Most of the commercial models are unable to give you an accurate value.

Why don't just do it on indices?

I didn't sign any personal guarantee for my LLC margin account with IB and TOS. Some firms are confident in their own risk management (or forced liquidation) and so they are taking the chance.

Why don't you trade with a LLC or corporation to protect yourself?

IB will liquidate your account at the same day when you have margin call whereas TOS gives you one day to reduce your margin or wire new fund. When you trade with margin, it is better to use TOS because IB usually liquidate your position at the worst time. TOS also have set-up similar to...

I think you still can get compensation with ib advisor account if AUM is less than a certain amount (like 1.5M), and less than 15 clients. It depends on your state of residency. If you are a CTA, you need to pay ss, medicare tax for your trading profit, i think. I don't recall where i read...

If I am not actively trying to raise trading capital, what is the benefit of becoming a CTA? I can still trade for clients using IB Advisor account.

I am currently managing two accounts. How do I report my performance? Say for example, in the beginning of the month Account1 = $200K Account2 = $100K At the end of the month after fee charged to the account, Account1 = $240K Account2 = $110K

I meant "can a CTA not disclose his/her strategy?"

Can you not disclose your strategy? What is the min cost of getting a CTA designation? I think if the AUM is small, we don't have to register.

I think IB no longer accepts ACH deposit without secure login.

Aaron, thanks a lot. This is cool! If you as a CTA, trade for individual account, i believe the performance fee should be considered as revenue for the management company, and so it will be taxed as ordinary income, right? So it is better to operate as a pool.

Suppose the management company is a LLC and taxed as partnership, and no salary for the manager, how will the following fee be taxed in a pool under a LP or LLC? 1. management fee (assume 2%) 2. performance fee from clients contribution (assume 20%) 3. performance fee of my own...