Even if that's the case (and I don't know it is)... keep in mind there are a number of bills in Congress right now that will get rid of that advantage for limited partnerships, ie CPO funds. I've read that the financial interest take it for granted that it's only a matter of time until that passes into law.
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CTA Startup
- Thread starter BGB
- Start date
I also heard that MF Global is very "CTA Friendly" ... do you know anything? I am not familiar with their platform at all.Quote from heech:
For me, after bouncing through a few different firms, my biggest priority has turned to "customer service" above the rest. Because frankly, customer service should be able to make the rest work out for you. (This all assumes you're doing decent size; there are no philanthropists out there.)
FCMs/brokers are mostly "commodities" themselves, these days... mostly interchangeable.
In terms of platforms... if you're tied to one, I'd suggest you pick the platform and then choose the broker. You'll have any number of choices in any direction.
In terms of fees... if fees are your primary consideration, I'd look at either IB or Advantage Futures. Others might be able to match them, but probably not do much better.
In terms of reporting... I'd say, ask them for a sample report. My fund admin is able to put in the work to integrate with just about anyone.
In terms of marketing.. no idea. That's a part of the puzzle I haven't figured out. Aaron will probably have much more useful input.
I hear Interactive Brokers has big financial professionals offering icluding CTAs but I am never looked into them. I used to have personal account with IB and didnot like it, neither I liked TradeWorkStation - but they are cheap, probably cheapest ?
Quote from SuperVolatility:
I also heard that MF Global is very "CTA Friendly" ... do you know anything? I am not familiar with their platform at all.
I hear Interactive Brokers has big financial professionals offering icluding CTAs but I am never looked into them. I used to have personal account with IB and didnot like it, neither I liked TradeWorkStation - but they are cheap, probably cheapest ?
MF Global is very "CTA Friendly" ---- Can you provide some examples? Thanks.
I don't really know what MF Global's reputation stems from. MF Global supports TT of course, and should have access to all the standard industry tools.Quote from SuperVolatility:
I also heard that MF Global is very "CTA Friendly" ... do you know anything? I am not familiar with their platform at all.
I hear Interactive Brokers has big financial professionals offering icluding CTAs but I am never looked into them. I used to have personal account with IB and didnot like it, neither I liked TradeWorkStation - but they are cheap, probably cheapest ?
The quote I received from MF Global's institutional group wasn't very impressive, to put it mildly. I got a better quote from a few IBs, but still nothing especially impressive.
The limited interaction I've had with MF Global has so far confirmed my initial impression: they're a large company, and they operate like a large company. (Layers of bureaucracy, etc.)
Quote from heech:
I don't really know what MF Global's reputation stems from. MF Global supports TT of course, and should have access to all the standard industry tools.
what is TT?
The quote I received from MF Global's institutional group wasn't very impressive, to put it mildly. I got a better quote from a few IBs, but still nothing especially impressive.
Can you name a few IB's you would recommend?
I apprciate thanks.
Quote from Aaron:
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 are also management fees and some CTA's get commission-based income. Then there are also management, performance fees, and trading profits in commodity pools. And your management company could be a sole proprietorship, LLC, LP, or Subchapter S corp. And the management company could pay you personally a dividend, salary, or you could leave the money in the company, or LLC's and LP's are pass-through entities for tax purposes.
So if you want an accurate answer you have to be careful to specify the question and the business setup. But maybe you were asking about trading profits on your own personal futures trading in your own personal account? That isn't affected by your status as an associated person of a registered CTA. That will still be Section 1256 Contracts and Straddles income and gets the 60/40 tax treatment as Heech said.
Aaron who did you start out with CTA business? I read some of your interviews for the magazines and that youw orked for Monroe Trout...but how exactly did break out on your own. Would say $100-150K of personal funds good enough to start?
Quote from SuperVolatility:
Aaron who did you start out with CTA business? I read some of your interviews for the magazines and that youw orked for Monroe Trout...but how exactly did break out on your own. Would say $100-150K of personal funds good enough to start?
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 money to cover your first year expenses before going out on your own is important.