Ok, well I hope so because there is alot of bad chat rooms that innocent people(new traders) are finding their way into and the new traders are losing their money because of these bad chat rooms. Something needs to be done about it. So I hope you are right and the CFTC is looking into the chat room problem more closely before more new traders lose their money.
Pay for profit - emini learning rooms?
- Thread starter glenjohnson
- Start date
Ok, well I hope so because there is alot of bad chat rooms that innocent people(new traders) are finding their way into and the new traders are losing their money because of these bad chat rooms. Something needs to be done about it. So I hope you are right and the CFTC is looking into the chat room problem more closely before more new traders lose their money.
Brownsfan019,
Charging a fee based on being profitable or not , falls that under the CFTC or not ?
a "could" answer is very unusefull
Charging a fee based on being profitable or not , falls that under the CFTC or not ?
a "could" answer is very unusefull
Nick - I am not an attorney, nor work for the CFTC. From one person's point of view, this could very well fall under the CFTC.
Here's how I would view this type of setup - if you were a for hire trader that charged a fee and/or % of profits, you may need to register with the CFTC (usually depends on how many accounts you have). Now, let's assume the CFTC views rooms that charge IF you are profitable basically the same as this. And if your room has over 15 people (I think that's the #), then you basically could be doing what would require registration, etc.
My point being that this is why you do not find chat rooms that do this. There's too many questions and too many admin things that would need done.
Here's some examples why setting up a room like this could be a nightmare for the provider: what exactly would be defined as 'profitable'? Just making money, even if it is a tick for the month? What about the situation where a person joins the room, made money, but cancels on day 25 when the billing is set for day 30? The provider is just out of luck? What about where the provider makes assumptions, which are not realistic - i.e., the profit target is just tipped and the provider counts that as a win, yet you were stopped out? The provider says the profit goal was hit, you say but I didn't get filled. Or how about when the profit target is set at 2 points and the trader decides to go for 2.5 and that is not hit? You could say, the provider is right, but the traders broker statement shows a stop out. In turn, all of these can stimulate credit card chargebacks and the credit card vendor could easily side with the trader. As you can see, when it's time to bill based on 'profitability' there's just too many grey areas. You could say that as long as this was laid out before entering the room that would be fine, and it is until there is a problem. When it comes to disclaimers and agreements, people typically do not read those until there are questions.
Again, the point being finding a chat room that charges based if you are profitable is going to be difficult.
Yes, 15 is the number for accounts
under management, what if the advisor
is ouside the states and the clients
too ?
Indeed , more complex than you
think, one should consult an attorney..
under management, what if the advisor
is ouside the states and the clients
too ?
Indeed , more complex than you
think, one should consult an attorney..
15 accounts for what? 15 accounts to open a hedge fund? Anybody have a link to the 15 account rule? I'm interested in reading. Thank you.
whats the source of the above?
thanks,
surf
good - 15 accounts and below, you do not have to register as a CTA. Over 15 and you need to register as a CTA.
Hedge funds are a different ball game.
surf - the source is me.
I know that will not suffice or be what you were looking for, but based on personal experience I can confidently say that the CFTC is reviewing chat rooms and how they operate under the current structure.
Is there a maximum or minumum balance in which the 15 account balance can have in each? Or a total balance for all 15 accounts combined until we have to get ourselves CTA registered?
Good - my understanding is it's simply number of accounts, regardless of size. HOWEVER, CONTACT THE NFA DIRECTLY. They are very helpful there and/or consult an attorney.
In my opinion, you do NOT want to be operating under the incorrect info b/c it could be very costly.