Pooled Account

[NeuralNet34]

Besides mutual funds and hedge funds, are there simpler options for creating a pooled account (i.e. you trade in one big account rather than separately for each client)?

It's tedious to enter the same trades across 10+ accounts.

Assuming one was to get the proper licensing, is there a simple way (in terms of startup costs, compliance paperwork, etc) to have everyone pooled into one single account, in such a way that the manager can trade the funds but not withdraw them himself?

This is for US securities, and could ideally include both taxable accounts and IRAs.

 

[ZBZB]

Search on the interactive brokers site for their friends and family account. One master account controls 15 sub accounts for allocations and fees. No registration required as money stays in friends and family names.

 

[stochastix]

Besides mutual funds and hedge funds, are there simpler options for creating a pooled account (i.e. you trade in one big account rather than separately for each client)?

It's tedious to enter the same trades across 10+ accounts.

Assuming one was to get the proper licensing, is there a simple way (in terms of startup costs, compliance paperwork, etc) to have everyone pooled into one single account, in such a way that the manager can trade the funds but not withdraw them himself?

This is for US securities, and could ideally include both taxable accounts and IRAs.

Yes, IB like zdzd just said, but be ware you become a 'professional' and fees are much greater. If you skirt around them they can retroactively bill you for being a pro

 

[NeuralNet34]

Search on the interactive brokers site for their friends and family account. One master account controls 15 sub accounts for allocations and fees. No registration required as money stays in friends and family names.

I looked at this, but it seems that you must place trades in individual accounts?

 

[ZBZB]

I looked at this, but it seems that you must place trades in individual accounts?

what would be the point of that? The trades are done in the master account and split into the sub accounts.

 

[NeuralNet34]

what would be the point of that? The trades are done in the master account and split into the sub accounts.

To make sure I understand, with a IB friends & family account, you can do the following?

Account 1: 5k USD
Account 2: 10k USD

Then you buy 100 shares XYZ for 3k USD in the master account (i.e. one single trade), and automatically:
Account 1: 4k USD + 33.333333 XYZ
Account 2: 8k USD + 66.666666 XYZ

 

[ET180]

Yes, IB like zdzd just said, but be ware you become a 'professional' and fees are much greater. If you skirt around them they can retroactively bill you for being a pro

That's not generally true. To be considered a pro, you have to meet other criteria. If you're just managing a few family members or friends accounts, that won't do it. I don't see any change in fees either.

 

[deaddog]

Besides mutual funds and hedge funds, are there simpler options for creating a pooled account (i.e. you trade in one big account rather than separately for each client)?


This is for US securities, and could ideally include both taxable accounts and IRAs.

You could set up an investment club.
Or a limited partnership.
I doubt it could be used for IRA's

 

[NeuralNet34]

You could set up an investment club.
Or a limited partnership.
I doubt it could be used for IRA's

I'm searching online about investment clubs, but it seems you just make an LLC and open a brokerage account in its name. So the problem is that at least one person has withdrawal-rights over everyone else's money.

Ideally, one person would be able to trade, but a person can only withdraw their own money.

 

[stochastix]

That's not generally true. To be considered a pro, you have to meet other criteria. If you're just managing a few family members or friends accounts, that won't do it. I don't see any change in fees either.

Ahh , interesting