Heres the situation: I been trading for 4 years and Im very good. I want to trade other peoples money but there are brick walls. 1. You have to be register by the state 2. have your Series 65. However I need some funding to get it off the ground. What can I say/offer to a person that doesn't sound like "ill be trading your money and giving you a return". I will get my 65 soon but like I said I need some off the ground money to get going. Is there a grey area
Looking for the Grey Area Trading peoples Money
- Thread starter BlackWallStreet
- Start date
Robert Morse
Sponsor
What state are you doing business in? Do you have an investor lined up?
Im doing business in either Flordia or Virginia - and I have a few investors and working may have some new ones
Robert Morse
Sponsor
https://www.scc.virginia.gov/srf/bus/ia_regis.aspx
http://www.flofr.com/StaticPages/StateRegisteredAdvisorsFirm.htm
Looks like both have no exception I can find for a few accounts, unless you have no place of business in those states. Do you live in another state?
http://www.flofr.com/StaticPages/StateRegisteredAdvisorsFirm.htm
Looks like both have no exception I can find for a few accounts, unless you have no place of business in those states. Do you live in another state?
Robert Morse
Sponsor
I'm going to disagree here. If you have access to investors and can run it as a business, you can build a nice business with others capital.
I dont have any businesses anywhere yet. Just a few investors waiting on me to find out what I can do with there money until I get the 65 and structured
Robert Morse
Sponsor
You have to be somewhere. If your place of business, your home or office, is not in those states, you might come under an exemption.
Yes, offshore, but as you're US based with US clients it becomes messy. Then you would need a master/feeder and that becomes expensive fast. You have to understand the accredited investor rules, there are no workarounds.
In theory due to the rule changes, you can crowd fund investors without accreditation, but no one actually knows how, we've investigated it. You can have a few non-accredited investors, but the rules are complex, you need a good lawyer. The lower you are down the chain the greater the barrier to entry, the 'grey area' you want means you set up your own A-Z structure on the outside of the chain, that's what we have which has taken since 2011 to put it in place, and we're only just starting to activate it.
You have places like IB marketplace and social trading networks depending on the level of your target clientele, but you don't want to mix and match. Trading other peoples money is about trust and that takes time, they want to make sure you've spent capital to put in place a structure, $100,000s is really the starting point, I've spent a few $million. Looking back it probably would have been better to pay everyone off and start sooner, but I absolutely hate middlemen and pyramiding.
The system is designed in a very specific way, you get what you pay for, someone with $1mn assets is not going to be interested in someone who's spent $5,000 on a structure. Then of course you have brokerage issues as you become a professional trader. Trading other peoples money in your own fund is very satisfying, but one mistake and you'll be punished severely, if it's not watertight it's you who becomes liable.
The brick walls are there by the elites and institutions to make sure the 'undesirables' stay out, basically everyone who's not them, sure I know the ways around these coming from that environment, but there's no chance anyone is getting anywhere near that information. A fund is a lifestyle choice, you can't just set up a company and say I'll trade your money, the financial system doesn't work that way. You can try, but you'll find some unpleasant things along the way until you capitulate wishing you had never tried. Your best option is the friends and family approach until you generate capital and a track record to do it properly.
In theory due to the rule changes, you can crowd fund investors without accreditation, but no one actually knows how, we've investigated it. You can have a few non-accredited investors, but the rules are complex, you need a good lawyer. The lower you are down the chain the greater the barrier to entry, the 'grey area' you want means you set up your own A-Z structure on the outside of the chain, that's what we have which has taken since 2011 to put it in place, and we're only just starting to activate it.
You have places like IB marketplace and social trading networks depending on the level of your target clientele, but you don't want to mix and match. Trading other peoples money is about trust and that takes time, they want to make sure you've spent capital to put in place a structure, $100,000s is really the starting point, I've spent a few $million. Looking back it probably would have been better to pay everyone off and start sooner, but I absolutely hate middlemen and pyramiding.
The system is designed in a very specific way, you get what you pay for, someone with $1mn assets is not going to be interested in someone who's spent $5,000 on a structure. Then of course you have brokerage issues as you become a professional trader. Trading other peoples money in your own fund is very satisfying, but one mistake and you'll be punished severely, if it's not watertight it's you who becomes liable.
The brick walls are there by the elites and institutions to make sure the 'undesirables' stay out, basically everyone who's not them, sure I know the ways around these coming from that environment, but there's no chance anyone is getting anywhere near that information. A fund is a lifestyle choice, you can't just set up a company and say I'll trade your money, the financial system doesn't work that way. You can try, but you'll find some unpleasant things along the way until you capitulate wishing you had never tried. Your best option is the friends and family approach until you generate capital and a track record to do it properly.
Last edited:
I havent started the business yet ... I was looking for more information until things kicked off