With the series 63 could you start you're own hedge fund, in order to avoid paying commissions
Starting my own hedge fund
- Thread starter Scalperten
- Start date
Lol
If no one teaches me. I need a mentor.
rmorse
Sponsor
I'm not sure you need to take any exam to start a hedge fund and what makes you think you would then avoid paying commissions? I have a few hedge fund clients, they pay commissions. When I was a member of the American Stock Exchange (A Broker Dealer), I paid commissions.
Only self-clearing broker dealers that are member of the exchanges they trade at, don't pay commission, but they have a large monthly infrastructure cost. (BTW-They still have to pay transaction fees at the exchanges)
It would be cheap to pay commission unless they have scale.
More out of curiosity than anything, what are the steps someone would have to do to start a hedge fund?
rmorse
Sponsor
In general there are two sides to this. You need to establish a trading strategy and verifiable track record that is marketable. Then after or concurrently, you'll need to start a business. The business side of the hedge fund will include at a minimum:
-Lawyer (establish your GP, LP, investment manager,investor agreements and do any filings that are necessary)
-3rd party Administrator (Keep track of you P & L and cash movement)
-Auditor (Check books and records for accuracy)
-Prime Broker (clear and custody positions and cash)
We are called a mini-prime or introducing broker. Most importantly, we offer an introduction to the Prime Broker and provide trading platforms and access to the exchanges. However, we help coordinate the needs of all of the above.
When an investor invests as a LP in a hedge fund, they expect to be investing in a business, not just a person.
Bob
-Lawyer (establish your GP, LP, investment manager,investor agreements and do any filings that are necessary)
-3rd party Administrator (Keep track of you P & L and cash movement)
-Auditor (Check books and records for accuracy)
-Prime Broker (clear and custody positions and cash)
We are called a mini-prime or introducing broker. Most importantly, we offer an introduction to the Prime Broker and provide trading platforms and access to the exchanges. However, we help coordinate the needs of all of the above.
When an investor invests as a LP in a hedge fund, they expect to be investing in a business, not just a person.
Bob
Ok I feel like a condor
So you said you provide this services?
Do you work for a dealer like Morgan Stanley?
A part of me is thinking about my future and building myself financially
So you said you provide this services?
Do you work for a dealer like Morgan Stanley?
A part of me is thinking about my future and building myself financially
Hello Robert
Is there a minimum to start a hedge fund? i heard numbers from 20-100K is enough to start with. Do you deal with clients (investment managers who want to set up a hedge fund) from US and Europe only or from all over the Globe? Does your firm offer a tripartite agreement?
A. Elmaghrabi, CMT