Live Trading Room

Trade4gainz said:
so if i take the series 3 exam i can legally open a live trading room for subscription based?
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We got a bit off-kilter here. Apologies.

In the US, you can have a "live trading room", show your trades, etc with no license. Just use the standard disclaimers on your site as mentioned above.

The key pin on your room's legality would be if you are "telling people" to take the trades, or merely show the trades and peeps could do with that what they will. In the grand scheme of things here in the US man, if you just open a room and show your trades and have those disclaimers, you should be fine.

Don't sweat it. The regulatory bodies here have a lot more on their plate to chase down than a simple folk with a screen-sharing room. :-)
 
Trade4gainz said:
so if i take the series 3 exam i can legally open a live trading room for subscription based?
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yes with proper disclosure that you have no actual track record when you begin. you can state a hypothetical track record but it must be stated as such. if you do have a track record i think you can use it, but i would have it independently audited.
 
Basically, you are running a newsletter service for which no registration is required as long as your advises are general i.e. for all and not specific to single clients on individual portfolio basis.

It would be a good idea to check with one of the similar services that you plan to offer. They would definitely have correct inputs as they are in the middle of "real action" of providing newsletter/signal type services.
 
toc said:
Basically, you are running a newsletter service for which no registration is required as long as your advises are general i.e. for all and not specific to single clients on individual portfolio basis.

It would be a good idea to check with one of the similar services that you plan to offer. They would definitely have correct inputs as they are in the middle of "real action" of providing newsletter/signal type services.
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i think you find if he publishes he will have to register - he must charge a flat rate to qualify as publishing cta "i think" if it's based on percentage etc. they construe that differently. either way he has to have all the proper disclaimers and can not ever offer a live account as any proof of trading.
 
MarkBrown said:
i think you find if he publishes he will have to register - he must charge a flat rate to qualify as publishing cta "i think" if it's based on percentage etc. they construe that differently. either way he has to have all the proper disclaimers and can not ever offer a live account as any proof of trading.
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For only stocks, he might not need any registration. Even percentage incentive can be charged for upto 15 clients in both stocks and commodities (not sure, so correct me if wrong).
 
toc said:
For only stocks, he might not need any registration. Even percentage incentive can be charged for upto 15 clients in both stocks and commodities (not sure, so correct me if wrong).
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right and there is some kind of cap on the total amount of money as well. there have been recent cases where they have made so called publishers also register, i think because of the size of the subscription base.
 
Isn't there a potential for the clients of such a trading room to abuse it? For instance, a client can share their screen with unlimited number of other users who are not paying for the service. How do you plan to prevent that?
 
Is a live trading room a viable business model? How many clients are you looking to have over the next 12 months? How much are you going to charge?
 
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