Managing Other People's Accounts

T

T-Bone Trader

If I were to open an account with Interactive Brokers and was a CTA...

What are the requirements needed for me to manage other people's money?

Obviously with all this nonsense surrounding money manegement scams, I think that the best way to convince people that at least their money is safe from fraud would be to have them open an account at IB (or any other big broker) and trade for them.

Does anyone know what types of fees I am allowed to charge for trading other people's accounts?

I'm pretty serious about this and will probably have some other questions so I would definitely appreciate comments from those with more experience and knowledge.

Thanks in advance.
 
No CTA I know has their clients open at IB.

IB isn't even a clearing firm for futures. They use RJO Brien.

Clients will pay whatever fees you can persuade them to agree to.

Individually managed accounts are very attractive to shrewd investors. Anything with the word "fund" or "pool" should be avoided, these days.
 
Quote from GCSICLRBC:

No CTA I know has their clients open at IB.

IB isn't even a clearing firm for futures. They use RJO Brien.

Clients will pay whatever fees you can persuade them to agree to.

Individually managed accounts are very attractive to shrewd investors. Anything with the word "fund" or "pool" should be avoided, these days.
More...

Real quality information there. IB is a clearing member of the CME, CBOT and other futures exchanges.
 
Thank you for that post...

I was thinking IB because I wanted to do a variety of products...I wanted to be able to day trade ETFs, and also trade index futures or currencies...

Is this not a viable idea for generating more profit for the client and more fees for myself?
 
Quote from jeb9999:

Real quality information there. IB is a clearing member of the CME, CBOT and other futures exchanges.
More...


Ummmm, no.

I do stand SLIGHTLY corrected. IB is an FCM but I don't think they're a clearing FCM.


Here's from the NYMEX website for Member Firms:



Clearing Members & Member Firms

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | R | S | T | U | V | W | Y

A

ADM Investor Services, Inc.
New York Mercantile Exchange Clearing Member

Arthur E. Mittnacht III
140 Broadway, 23rd floor
New York, NY 10005-1101
Tel: 212 785-2200
E-mail: amittnacht@admis.com


A.G. Edwards & Sons, Inc.
New York Mercantile Exchange Clearing Member

Peter A. Biebel, VP Manager Futures Department

One North Jefferson
St. Louis, MO 63103
314-955-3050
314-955-7432 FAX
E-mail: pabiebel@agedwards.com

Gary Rizzi, VP NY Floor Operations

A.G. Edwards & Sons is a full-service investment firm that has been in operation since 1887. The firm is based in St. Louis, Missouri, and has over 700 branches nationwide as well as international offices in London and Geneva. A.G. Edwards & Sons is a member of all major domestic futures exchanges and the National Futures Association.

AIG Clearing Corp.
New York Mercantile Exchange Clearing Member

AIG International, Inc.
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

Allston Trading LLC
COMEX Division Non-Clearing Member Firm

Arbitrage LLC
COMEX Division Non-Clearing Member Firm

Arctos Capital, LLC
NYMEX Division Non-Clearing Member Firm

Asarco, Inc.
COMEX Division Non-Clearing Member Firm

William L. "GUS" Paul
180 Maiden Lane
New York, NY 10038
(212) 510-2000
(212) 510-2122 (fax)
wpaul@asarco.com
http://www.asarco.com

Asarco, Inc. is one of the world's leading integrated producers of non-ferrous metals, principally copper, lead, zinc, silver, and molybdenum. Asarco, Inc. also produces specialty chemicals and aggregates.


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B

Banc of America Securities, LLC
New York Mercantile Exchange Clearing Member

Bank of America, NA
NYMEX Division Non-Clearing Member Firm
COMEX Division Non-Clearing Member Firm

Barclays Bank Plc.
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

Barclays Capital, Inc.
New York Mercantile Exchange Clearing Member

BASF Catalysts LLC
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

Bear Stearns FOREX Inc.
COMEX Division Non-Clearing Member Firm

Bear Stearns Securities Corp.
New York Mercantile Exchange Clearing Member

Birch Brokerage Company, Inc.
COMEX Division Non-Clearing Member Firm

Bluefin Energy, L.L.C.
NYMEX Division Non-Clearing Member Firm

Bluefire Capital LLC
COMEX Division Non-Clearing Member Firm

BNP Paribas Commodity Futures, Inc.
New York Mercantile Exchange Clearing Member

Michael Ferguson
787 Seventh Avenue
New York, NY 10019
(212) 841-3333
(212) 265-6899 (fax)
mike.ferguson@americas.bnpparibas.com
http://www.cfi.bnpparibas.com

BNP Paribas futures is a leading provider of energy clearing and floor execution services on both the New York Mercantile Exchange and in London. BNP Paribas futures is a member of the Paribas Group, one of the world's top 25 largest financial and banking institutions.

BP Corporation North America, Inc.
New York Mercantile Exchange Clearing Member

Britannic Trading Ltd.
NYMEX Division Non-Clearing Member Firm

BUCC Trading Corp.
New York Mercantile Exchange Clearing Member (Inactive)

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C

C & C Trading, LLC
COMEX Division Non-Clearing Member Firm

Calyon
NYMEX Division Non-Clearing Member Firm
COMEX Division Non-Clearing Member Firm

Calyon Financial SNC
COMEX Division Non-Clearing Member Firm

Canadian Imperial Bank of Commerce
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

Cargill, Inc.
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

Chevron, USA, Inc.
NYMEX Division Non-Clearing Member Firm

CHS, Inc.
NYMEX Division Non-Clearing Member Firm

Citigroup Derivatives Markets Inc.
NYMEX Division Non-Clearing Member Firm

Citigroup Global Markets Inc.
New York Mercantile Exchange Clearing Member

Commerzbank International, S.A.
COMEX Division Non-Clearing Member Firm

Cowen and Company, LLC
COMEX Division Non-Clearing Member Firm

Coral Structuring, L.L.C.
NYMEX Division Non-Clearing Member Firm

Credit Suisse Securities (USA) LLC
New York Mercantile Exchange Clearing Member Firm

Tel: (212) 325-7566
Fax: (212) 743-5976
Email: Tom.Lehrkinder@CSFB.com

Crown Commodities, Inc.
COMEX Division Non-Clearing Member Firm

Kevin Kline
One North End Avenue, Box 836
New York, NY 10282
(212) 590-4050
(212) 590-3513 (fax)

Gold and silver brokerage operation.

CTC Energy, LLC
NYMEX Division Non-Clearing Member Firm

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D

D.E. Shaw Plasma Portfolios, L.L.C.
NYMEX Division Non-Clearing Member Firm

Deutsche Bank AG
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

Deutsche Bank Securities, Inc.
New York Mercantile Exchange Clearing Member

Dorman Trading, LLC
COMEX Division Non-Clearing Member Firm

Dresdner Bank AG
COMEX Division Non-Clearing Member Firm

DRW Commodities, L.L.C.
NYMEX Division Non-Clearing Member Firm

DY DX Trading Corp.
COMEX Division Non-Clearing Member Firm

Dynegy Marketing and Trade
NYMEX Division Non-Clearing Member Firm


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E

Eagle Futures, Inc.
COMEX Division Non-Clearing Member Firm

Emerald Trading Group, L.L.C.
COMEX Division Non-Clearing Member Firm

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F

Fat Trading, LLC
COMEX Division Non-Clearing Member Firm

FC Stone, LLC
New York Mercantile Exchange Clearing Member

John Hahm
170 Broadway, Suite 814
New York, NY 10038
(212) 766-0100
Fax: (212) 766-0631
chrisg@fcstone.com
http://www.fcstone.com

FC Stone is a futures commission merchant with clearing memberships on all major U.S. futures exchanges.

First Derivative Traders LP
COMEX Division Non-Clearing Member Firm (Options Member)

Fortis Clearing Americas LLC
New York Mercantile Exchange Clearing Member

Fortis Energy Marketing & Trading GP
NYMEX Division Non-Clearing Member Firm

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G

Gamma Traders – I LLC
COMEX Division Non-Clearing Member Firm

Gator Trading Partners, LLC
COMEX Division Non-Clearing Member Firm

Gelber Group, LLC
NYMEX Division Non-Clearing Member Firm
COMEX Division Non-Clearing Member Firm

Gerald Metals, Inc.
COMEX Division Non-Clearing Member Firm

Paul Werner
140 Broadway
New York, NY 10005
(212) 607-3400
(212) 607-3485 (fax)

Gerald is one of the oldest and most active clearing members specializing in executing and clearing futures and options for energy and metal companies worldwide since 1978.

Glencore Commodities, Ltd.
NYMEX Division Non-Clearing Member Firm
COMEX Division Non-Clearing Member Firm

Glencore Ltd.
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

Goldman, Sachs & Co.
New York Mercantile Exchange Clearing Member

Michael Dawley
85 Broad Street, 25th Floor
New York, NY 10004
(212) 902-7582
(212) 357-2435 (fax)
michael.dawley@gs.com

Greenwich Capital Markets, Inc.
New York Mercantile Exchange Clearing Member

Great Lakes, Inc.
COMEX Division Non-Clearing Member Firm

Growth Management Capital Corp
COMEX Division Non-Clearing Member Firm

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H

Hanley Group LP
COMEX Division Non-Clearing Member Firm

H & M Trading Co.
COMEX Division Non-Clearing Member Firm (Options Member)

Hess Energy Trading Company, LLC
NYMEX Division Non-Clearing Member Firm

HSBC Bank USA
COMEX Division Non-Clearing Member Firm

HSBC Securities (USA), Inc
New York Mercantile Exchange Clearing Member

Hudson River Futures, L.P.
COMEX Division Non-Clearing Member Firm

Carlos Perez-Santalla
One North End Avenue, Mail Drop 977
New York, NY 10282
212-590-3585
212-590-1575 (fax)
hrf@pobox.com

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I

Infinium Capital Management, LLC
COMEX Division Non-Clearing Member Firm

Intrade LLC
COMEX Division Non-Clearing Member Firm

International Trading Group, LLC
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing Member Firm

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J

J. Aron & Company
COMEX Division Non-Clearing Member Firm
NYMEX Division Non-Clearing


...................


As you can see Interactive Brokers is NOT there (under "I").


Bone,

You should generally let your clients open account at whichever clearing firm THEY prefer unless you have an exclusive arrangement with an FCM. Some FCMs will feed you accounts if they like you, in exchange for your (hopefully high volume) business.

GL!
 
Quote from T-Bone Trader:

Thank you for that post...

I was thinking IB because I wanted to do a variety of products...I wanted to be able to day trade ETFs, and also trade index futures or currencies...

Is this not a viable idea for generating more profit for the client and more fees for myself?
More...


TWO things could help you immensely:

#1 - your bona fide track record directing accounts (NOT your own prop; could be a relative's with POA, etc.)

#2 - Your salesmanship & ability to build personal relationships with real people....investors who need help navigating these markets & want solid investments that are uncorrelated with Stocks.
 
I was looking for a one-source shop where I can trade several financial products. But most importantly, I wanted to be able to trade from one trading screen (master account) and then have the profits appropriately split amongst the client accounts.

I think that IB is the only firm that I know of that can offer me such variety of trading options and convenience of master account trading...

Or am I mistaken?

Also, are you saying that as an Intro-Broker, I can charge clients not only a mark-up on commissions charged by the broker but also a percentage of trading profits? Would trading profits have to be paid for directly by my client to me via check, wire, etc. or is it possible to have a broker (such as IB) debit their customer account the agreed-upon trading profit fee and have that directly credited to my master account?

Sorry for all the questions......
 
Your questions are a pleasure while I'm waiting for a fill. :P


MOST respectable FCMs will "allocate" your trades among your client accounts in a FIFO, first in first out basis, or otherwise.

You can trade from a "master" account or OMNIBUS account.

It's quite simple, actually.

You'll have to decide what your INCENTIVE FEE is & what your MANAGEMENT FEE is (if any).

******

I can't stand these amateurs who lick IB's bunghole. The cust. service sucks. Cheap comm. doesn't matter when your screen doesn't show your fill on 50-lot of crude.


OKAY, from CME Group's website:

Click this link to see WHO CLEARS & who doesn't:

http://www.cmegroup.com/tools-information/clearing-firms.html
 
Quote from GCSICLRBC:

Ummmm, no.

I do stand SLIGHTLY corrected. IB is an FCM but I don't think they're a clearing FCM.


Here's from the NYMEX website for Member Firms:

[Big Snip]


As you can see Interactive Brokers is NOT there (under "I")


GL!
More...

I did not state that IB was a NYMEX member.

IB owns Timber HIll and Timber Hill is a clearing member of the CME, CBOT and other futures exchanges (I don't have the full list).

See: http://www.cmegroup.com/tools-information/clearing-firms.html
 
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