do you have/need some kinda license/registration for the LP? with the F&F account, which entity is running the master account ? or you just run it under a real person?
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IB Friends & Family: Legal agreement between Advisor & Clients
- Thread starter trend7rader
- Start date
do you have/need some kinda license/registration for the LP? with the F&F account, which entity is running the master account ? or you just run it under a real person?
Quote from econometrics:
do you have/need some kinda license/registration for the LP? with the F&F account, which entity is running the master account ? or you just run it under a real person?
Since I run a very small amount right now and only 2 clients, I do not need to be registered. Per SEC, under $25M and I think 15 clients, you don't have to register with them. But, state laws you may have to. I eventually will register at some point (I used to have those licenses in the past anyways).
Quote from Stok:
Since I run a very small amount right now and only 2 clients, I do not need to be registered. Per SEC, under $25M and I think 15 clients, you don't have to register with them. But, state laws you may have to. I eventually will register at some point (I used to have those licenses in the past anyways).
What kinda registration/licenses are we talking about here?
I have absolutely no idea but would like to start, pls provide more info if you please.
with series 7/66, you can open a LLP/LP and start a fund that manages friends/family's money?
where can I find more info on it?
where can I find more info on it?
Quote from trend7rader:
Hi, I have a question about IB friends and family account which I'm looking to setup: What kind of legal agreement is necessary between advisor and client (friends & family)? Does IB provide watertight documentation for this or does advisor need to prepare this separately? Can anyone let me know this should cover? Presumably risk disclosure, investment strategy, breakdown of advisor fees... is there anything else? I'm looking to manage around 5 or 6 friends and family accounts on financial and commodity futures, possibly some stocks / ETFs in there too.
many thanks
Given the extremely high failure rate of traders, are you really sure you want to lose the money of your friends and family? The reality is, you are probably WAY overestimating your money management, trading and financial skills.
You are asking people who probably don't much understand what you are exactly trying to accomplish, and you are more likely than not going to make them regret that they ARE your friend or family member.
YOU (calling your little sister): "Ring, ring... " Hey, sweetie! Remember how I lost all that $31,000 it took you 3 years to save up from your job? because you trusted me? But I did not expect that false news report that extremists had seized a Pakistani nuclear weapon facility? And the market went down 20% in a few minutes and blew out my leveraged trading account? Well...
YOUR SISTER: *click*
This is one of the worst ideas ever...