Looking for experienced traders on profit sharing

[Overnight]

Hello everyone,

I have this business idea and would like to have some feedbacks on this.
I would like to allocate $10k on 5 sub accounts under my IB account in which 5 traders will trade them on behalf. Profit sharing will be structured as 50/50 after withholding tax liability. Profit will be paid out on a monthly basis for realized gains / high water mark.

While 5 accounts are up and running, I plan to raise capital to put more fund in.

Please let me know.
Thanks

If you do this with futures, and trade the same instrument and month in two different accounts under your control in opposite directions, you can be accused of the wash trade rule, and pay severe penalties. So stick with stocks. The SEC is overwhelmed and you can get away with washes, but the CFTC will catch you.

 

[oraclewizard77]

If you do this with futures, and trade the same instrument and month in two different accounts under your control in opposite directions, you can be accused of the wash trade rule, and pay severe penalties. So stick with stocks. The SEC is overwhelmed and you can get away with washes, but the CFTC will catch you.

Why not with a different broker for the other account if both want to trade futures?

 

[Overnight]

Why not with a different broker for the other account if both want to trade futures?

Indeed, that would certainly make it harder for the CFTC to get wind of it.