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There are about six people at ET worth reading and Nitro is one of them. Go back under your bridge you troll.

Yes on management fees, no on trading profits.

What was the point of the C-corp as the GP of your LP?? I have yet to see a good reason for a trader or CTA to set up a C-corp. Heck, even Goldman Sachs was a partnership until it wanted to go public. You are paying double taxes -- first at the corporate level and then your personal income...

See the posts on March 4th in this same thread when Yip asked this before. Fee income will flow through your Schedule E and you'll pay self employment taxes on it (if you are a US taxpayer and if your management company is a sole proprietorship, LLC, or LP), but your trading profits (i.e...

Even if you are getting paid management and performance fees there are still NFA registration exemptions depending on number of clients, AUM, and whether you hold yourself out to the public as a CTA. IB does keep an eye on it's FA accounts and, at least in my case, wanted to be sure I was...

Yes, correct. You'll also need to be able to compute your program's performance when there are additions or withdrawals mid-month, when you did not trade some accounts for the entire month, and (if you accept them) when you have notionally-funded accounts.

Yes, as a CTA and CPO you can trade both your CPO account(s) and separately managed accounts. That's what I do. At Interactive Brokers you can have a Financial Advisor (FA) account (owned by your management company) and client sub-accounts. Your pool account could be one of your client...

It's not difficult to find the registration requirements on the NFA website, and I recommend them to you. In short, if your hedge fund trades futures it is a commodity pool and you are required to register with the CFTC. If your hedge fund trades stocks and equity options, it doesn't. You...

Because that's where my wife and children live. :D Actually, I grew up here and like it better than the other places I've lived. It feels like home in many ways.

No, you don't have to put your track record on the website. You don't even need to have a website! If you do have a website, there are certain things you can and cannot say and disclosures you may have to make. If you become a CTA there are many NFA rules you will need to comply with...

If you can't find any information on their website, try again in the fall. The classes are geared toward teaching preparers for the upcoming tax season. Also, your local H&R Block office will have more detailed information if you want to call them.

CFP is a Certified Financial Planner, I believe, and I am not a CFP. Perhaps you are thinking of CFA, Chartered Financial Analyst, the designation I do hold. Years ago I was also a licensed Registered Rep with a brokerage firm (which required the Series 7 exam), but that license has lapsed...

Yes, I learned futures trading and strategy development working for Monroe Trout, first in Chicago and then in Bermuda. If you are currently employed, try to get your start as a CTA without leaving your job. Start trading your own money if you can to build up a track record. Yes, having...

I would have the management fee flow through to the tax returns of the owner(s) of the management company as ordinary income. It'll be on their Schedule E. If your pool partnership agreement indicates that the performance fee is an allocation of the capital gains (and it should!), then it...

While it sounds like a simple question, that is a big topic. There are several permutations. You can have trading profits on your own money, trading profits on investor money that go to the investor, trading profits on investor money paid to your management company (performance fees), there...

Hi Heech, It sounds like you went first class with high quality service providers. How expensive is it? If a CTA doesn't want to count on performance fees to pay the bills, what kind of assets under management would they need to make a profit with your overhead?

It isn't entirely black and white. In my case I'm also registered CTA and offer separately managed accounts and it's okay if I advertise the trading program and publish its returns -- with the appropriate disclosures, of course. But regardless of what I say or do, you should listen to your...

It was four people from NFA's Chicago office for 2-1/2 days. Lots of requests to see investor subscription documents and financial records. They had a few small suggestions to be better in compliance but found no big issues.

Sure, if people are interested in coming here, I'm more than happy to welcome them. I've hosted both individual and institutional investors for a conversation and informal presentation around my dining room table or over coffee on the deck. NFA auditors also set up camp for a few days in my...

Every money manager has ups and downs. It's nice of you to focus on the positive, Nihao. Thanks for being supportive! Good trading to you, Aaron