Professional Trader Status - question with personal accounts

[LiquidMike]

This topic has already been covered. See the following quote.




In fact, I suggest you to check out this entire thread. It outlines the legal ramifications on what you can and cannot do when managing OPM.

https://www.elitetrader.com/et/thre...-in-portfolio-assistance.376509/#post-5873047

Also to obtain a "professional" status, you really need to become licensed (eg. pass the exam) and registered with the state or the national agencies like FINRA or SEC/CFTC.


View attachment 335086

thanks - that answered it. ha

 

[Robert Morse]

I asked my two questions, because if the investors are all US persons, no advantage to a foreign locale. And, if the entity is just for those investors, the hedge fund structure is not required.

Thanks- but not looking for US based entities as stated in my initial post; so only Bermuda or Caymans, so this discussion moving off into US laws is a bit irrelevant in this case. One of the brokerages and a Bermuda law firm confirmed that having SEC licenses isn't required.

But ya, I think my question has been answered.

 

[LiquidMike]

I asked my two questions, because if the investors are all US persons, no advantage to a foreign locale. And, if the entity is just for those investors, the hedge fund structure is not required.

ahh.. ok - it's offshore so I don't need an SEC license and then also I have investors in China as well potentially.

But I'm looking more to setup my bot strategies and let them run and don't necessarily want to go to "professional status"; so now looking/thinking of how to circumvent that process... so maybe speak to existing seed hedge funds that handle everything.. not sure - any thoughts?

 

[Robert Morse]

This Pro-status is just for market data fees. You will be Pro anyway. The entity and trading others money.

ahh.. ok - it's offshore so I don't need an SEC license and then also I have investors in China as well potentially.

But I'm looking more to setup my bot strategies and let them run and don't necessarily want to go to "professional status"; so now looking/thinking of how to circumvent that process... so maybe speak to existing seed hedge funds that handle everything.. not sure - any thoughts?

 

[lindq]

ahh.. ok - it's offshore so I don't need an SEC license and then also I have investors in China as well potentially.

Put your focus not on what's easy or convenient, but what structure will best protect you legally, in worst-case-scenarios.

Imagine the worst that can happen, because when it involves OPM, it probably will.

 

[newwurldmn]

ahh.. ok - it's offshore so I don't need an SEC license and then also I have investors in China as well potentially.

But I'm looking more to setup my bot strategies and let them run and don't necessarily want to go to "professional status"; so now looking/thinking of how to circumvent that process... so maybe speak to existing seed hedge funds that handle everything.. not sure - any thoughts?

Avoiding paying a grand/year for professional data fees is the worst optimization here.

With oversee investors and off shore entities, your legal and accounting bills will dwarf that.

People don’t start hedge funds just to trade. They start hedge funds to run a business managing people’s money.

you trade options. My OPRA market data bill is like 22/month. My NYSE (covers all stocks) is like 68.

 

[mervyn]

fiduciary responsibility, people just don't understand that, only wanna be.

 

[prc117f]

If you are doing well why do you want all those headaches? Just trade your own capital and earn your living that way.