how to use money in hongkong to trade forex spot?

[Robert Morse]

I have been making money by trading fx spot for last 4 years. a rich hk person somehow contacted me and wants me to use his money to trade fx spot. he told me he can open a managed account in a hk bank (ubs, barcap, citi, etc) so I can use their PB service.

I only used my own money for trading before and never worked with PB so wondering how this hk thing could work? do I need have my own hedge fund company to conduct trading, or there is an easy way?

really appreciate any comments

I know nothing about HK laws regarding this, but I expect that all they have to do is open a trading account or sub account for your trading where ever they do business and make you an authorized trader. You will need a contract with them that is legally binding in HK and a process for you to be paid.

 

[luisHK]

I know nothing about HK laws regarding this, but I expect that all they have to do is open a trading account or sub account for your trading where ever they do business and make you an authorized trader. You will need a contract with them that is legally binding in HK and a process for you to be paid.

legally binding contract in pocket, you still need to plan quite a bit of money to handle the HK lawyers than bailiffs if you don't get paid. Those don't come cheap ime.

 

[Zzzz1]

The risk could be reduced depending on contract specifics such as getting paid more frequently based on performance early on. A lot of firms are willing to work with a profitable trader with track record on such terms.

legally binding contract in pocket, you still need to plan quite a bit of money to handle the HK lawyers than bailiffs if you don't get paid. Those don't come cheap ime.

 

[algofy]

I also have a guy in a foreign country wanting to give me money. I've got this relative in Africa that has a shit ton of gold bars........

 

[wintergasp]

legally binding contract in pocket, you still need to plan quite a bit of money to handle the HK lawyers than bailiffs if you don't get paid. Those don't come cheap ime.

@dadainnyc

If you are regulated and registered, the PB / Clearer can take the incentive fee and management fee out of the account and pay you directly, as per your agreement with the client.

 

[dadainnyc]

there is no HK bank with a PB desk except HSBC.

pretty much all IBs have PB there...

 

[dadainnyc]

Who implemented your current setup? It does not sound like you did it yourself. You should definitely pay up and seek some expert legal advice rather than ask on an anonymous forum, just my 2 cents.

i did everything myself. i worked for a major hft from 2006 to 2010 and then started to trade myself. thanks for ur advice

 

[dadainnyc]

Yes you just need your clearer / PB to give you a cross connect in ny4. You should register with the cftc in the usa as a forex managing firm, if its for only 1 client there are a few exceptions that make the process fairly light and cheap.

yeah, that's what the guy told me that on registration needed only if you manage more than 5 clients.

is there any company that handles all procedure, like documents & law stuff? Thanks!

 

[dadainnyc]

@dadainnyc

If you are regulated and registered, the PB / Clearer can take the incentive fee and management fee out of the account and pay you directly, as per your agreement with the client.

this is really helpful info

 

[Zzzz1]

Foreign IBs yes. But not Bank of China, ICBC, Agricultural Bank of China, Hangseng Bank, the Singaporean banks in HK, nor other Asian banks except Nomura to my knowledge

pretty much all IBs have PB there...