Best Way (entity?) to trade Family Funds

[DisciplinedHedg]

Whats the best way to trade other families/friends funds?

I don't want the hassle of having to login to each individuals account because my turnover is pretty high and that would take too much time.

Is there an entity thats best suited for this?

I'm not interested in creating a "hedge fund" if you will. Too much cost there.

 

[chasinfla]

imho, the best way is to avoid it at all costs. but sometimes that's impossible.

 

[Funster]

Why don't you try ETFs like Ishares on the Amex.

No uptick rule, and they trade all day long like a stock.

http://www.amex.com/?href=/etf/EtMain.jsp

 

[Fohat]

DisciplenedHedg,

You'll be able to trade/manage many accounts from one TWS (Traderworkstation - IB software) imo, using Financial Advisor Separately Managed Account Features available from Interactive Brokers starting August 1, 2002.

 

[Aaron]

I second Fohat's suggestion. IB's financial advisor separately managed accounts is the way I would go if I were you. Check on this to be sure, but I believe you are exempt from Registered Investment Advisor (RIA) or Commodity Trading Advisor (CTA) registration if you have fewer than 15 clients. A securities lawyer could tell you for sure, or you could hunt on the SEC or NFA websites (you didn't say whether you were trading equities or futures -- or even if you were in the US).

Not having an IB financial advisor account, I expect they'll have a separate limited power of attorney form your client will fill out giving you permission to trade their account. Possibly also allowing for you to receive some management fee or share of the commissions.

 

[DisciplinedHedg]

Thanks for the advice. IB's Managed Accounts seems very plausible.

Checked it out. It starts on Aug 1. So we'll see then.

 

[North Pesos]

Recently I have contacted them about it, but it seem that this product will not be available for simple account trader for the moment (but this could be modified if the situation required it as mentionned by IB). Sincerely, I hope that they will modified quickly their polycies about that.

 

[specul8tor]

don't trade your family's $$. find some sap and trade his, this way you'll save your family some pain.

 

[DisciplinedHedg]

Originally posted by North Pesos
Recently I have contacted them about it, but it seem that this product will not be available for simple account trader for the moment (but this could be modified if the situation required it as mentionned by IB). Sincerely, I hope that they will modified quickly their polycies about that.

North Pesos,

What did they mean when they said the product will not be available for simple account trader?

 

[North Pesos]

In first time, it seem that this will be reserved for professional and institutional, but I have mentionned to them that many simple account traders would like to use it also. Their response was that this product should be available also for them in the futur, but no timeframe was avalaible when we could use it, only that this will be at another time, probably only when this API will be release for everyone.

Also, I have submitted the question at eSignal if they have plan to offer IB multiple account management across eSignal (CyberTrader do that, why not them) and I have never received an answer for that. In this case, they don't have to use multiple account API from IB, only have to open a socket for each of them (this is as to run many TWS at the same time). Not to be a rocket engineer for do that, but don't know if they will do that.