Bank account which accepts investment companies and has good wire fees

B

buysellhold

Hi guys,

I've been trading on my own for a while and the have found enough success to persist. However, for various reasons, I'm not trading using my personal account but instead, using an LP entity, kinda like a mini hedge fund (though it's just my $). For some trading-related reasons, I also have a lot of brokerage accounts so I often need to transfer money via wires (ACH not always great).

I've had a surprising amount of trouble opening a bank account. Many banks just don't want to deal with "investment companies" or "hedge funds" or anything which sounds similar and tell me that they don't want to deal with that type of business. Most recently, I've got a notice from NKBC saying that "Upon further review, we have concluded due to the nature of your business, we are not able to proceed with your application."

Does any one have suggestions on banks which are happy to work with traders who trade though their company without being a massive hedge fund? Some things I'd like are relatively low wire fees / free wires and maybe an optional money market account that can be linked to pay OK interest on the balances just sitting there.
 
Right, that's what I've been doing; however I'd now like to open another bank account in the partnership name and am looking for banks who are a) willing to open accounts for trading partnerships and b) have somewhat decent service / fees, hopefully relatively low wire fees.
 
buysellhold said:
Hi guys,

I've been trading on my own for a while and the have found enough success to persist. However, for various reasons, I'm not trading using my personal account but instead, using an LP entity, kinda like a mini hedge fund (though it's just my $). For some trading-related reasons, I also have a lot of brokerage accounts so I often need to transfer money via wires (ACH not always great).

I've had a surprising amount of trouble opening a bank account. Many banks just don't want to deal with "investment companies" or "hedge funds" or anything which sounds similar and tell me that they don't want to deal with that type of business. Most recently, I've got a notice from NKBC saying that "Upon further review, we have concluded due to the nature of your business, we are not able to proceed with your application."

Does any one have suggestions on banks which are happy to work with traders who trade though their company without being a massive hedge fund? Some things I'd like are relatively low wire fees / free wires and maybe an optional money market account that can be linked to pay OK interest on the balances just sitting there.
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I don't have answer for you but am interested in what you find out. The regional banks and credit unions are all pretty small time and in my experience get scared by anything that isn't straight banking in exactly the flavor they're used to. On the other hand I know you can get all those services from BofA, Wells, and PNC but they are all non-negotiable on milking those ridiculous wire fees for all they're worth.
 
FWIW I succeeded in opening an account with BofA but then, about a month later they froze and closed it with a "we shouldn't even have opened it; we don't want to deal with that industry" and I couldn't quite figure out why. I'm guessing it's some AML concerns because otherwise, this seems like the best client ever -- I sometimes leave lots of cash in a non-interest bearing account, occasionally do a few ACH / wire transfers (for which they charge a large fee) and don't otherwise use any of their resources.

Wells seemed potentially interesting but this was right after the account opening scandal and they seemed so paranoid that they requested an unreasonable mountain of paperwork. And not like their wire fees are good. Sigh.
 
If you have a single member LLC like ABC Capital LLC, is it still hard to open a bank account? Assume your LLC is properly registered with someone like Zoom etc.
 
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