Professsional datafee or not?

V

virtusa

I am struggling with Non professional versus professional fees for CME.

Person A has a trading account for futures ES (CME). He is accepted as a non professional and pays the reduced fees (non professional).

What will happen if:
  • Person A will trade a second account which is opened by his own son. Person A is doing this for free, so he does not receive any financial incentive. Professional or not?
  • Person A will trade a second account which is opened by a very good friend. Person A is doing this for free, so he does not receive any financial incentive. Professional or not?
  • Person A will open a joint account with his son or his friend. Professional or not?
 
https://www.interactivebrokers.com/en/index.php?f=718

Professional/Non-Professional Subscriber Definitions
Professional – Any person that meets any of the following criteria:

  • Is registered or qualified with: the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association.
  • Is engaged as an "investment advisor" as that term is defined in Section 201(11) of the Investment Advisor's Act of 1940 (whether or not registered or qualified under that Act).
  • Is employed by a bank or another organization that is exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt.
Non-Professional - is any natural person and cannot be a corporation, trust, organization, institution or partnership account.
 
wmwmw said:
Section 201(11) of the Investment Advisor's Act of 1940
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Is there anybody here who can answer my three hypothetical scenario's? I am afraid not.

The first criteria is easy to answer:
Person A is NOT registered or qualified with: the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association.

The third criteria is easy to answer:
Person A is NOT employed by a bank or another organization that is exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt.

The second criteria is the problem.
What is "investment advisor"?
From what I understand I am already a professional if I tell my son that I would buy now. Because that is "giving advice".

Maybe @Robert Morse can help?
 
wmwmw said:
Since you don't even know what is an investment advisor, you certainly are not.
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Well Tradovate says I am Professional. I will show them your post, maybe it will help. :banghead:
The account I speak about is so small that I need to make 100% a year so that the person I am helping can pay the professional fees without losing money.
 
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virtusa said:
Is there anybody here who can answer my three hypothetical scenario's? I am afraid not.

The first criteria is easy to answer:
Person A is NOT registered or qualified with: the Securities and Exchange Commission, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association.

The third criteria is easy to answer:
Person A is NOT employed by a bank or another organization that is exempt from registration under Federal and/or state securities laws to perform functions that would require him or her to be so registered or qualified if he or she were to perform such functions for an organization not so exempt.

The second criteria is the problem.
What is "investment advisor"?
From what I understand I am already a professional if I tell my son that I would buy now. Because that is "giving advice".

Maybe @Robert Morse can help?
More...
Every mother-in-law is an investment advisor.:D
 
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