Urgent, need help, unique situation, seeking prop shop

calhawk01 · Jul 18, 2014

hi all- I have a situation where I have an investor who wants me to trade on his behalf as a prop trader. He wants to be the owner of the prop account. I want to be the trader.

Do we know of a prop firm that lets you setup an account where the owner of the account designates a trader on his behalf? And to even go further, splits the profit/loss based on whatever the owner and trader have agreed upon?

Thanks

Maverick74 · Jul 18, 2014

calhawk01 said:
hi all- I have a situation where I have an investor who wants me to trade on his behalf as a prop trader. He wants to be the owner of the prop account. I want to be the trader.

Do we know of a prop firm that lets you setup an account where the owner of the account designates a trader on his behalf? And to even go further, splits the profit/loss based on whatever the owner and trader have agreed upon?

Thanks

Why is this urgent?

smallStops · Jul 18, 2014

Maverick74 said:
Why is this urgent?

psychology : he is excited and can't believe his luck.

calhawk01 · Jul 18, 2014

Maverick74 said:
Why is this urgent?

because I want an answer! and what smalls said!

Maverick74 · Jul 18, 2014

calhawk01 said:
because I want an answer! and what smalls said!

The answer is no. What you need to do is setup an LLC. This will cost you a few thousand on the cheap. Then you need to find a firm that will let you open an account with an LLC. Most "should" let you do that. But for purposes of money laundering, you cannot take money from someone else and open a prop account. The account has to be in your name. You need to be registered and fingerprinted.

Setup an LLC, you will be the class A member and managing partner. Your investor will be the class B member. You will designate the percentage of profits the class B member gets. Your prop firm MUST have all your LLC documents on file with the firm. And most likely, your investor will need to be fingerprinted as well.

I should note, this is a real pain in the ass process. At my old firm, the CBOE even wanted our class B or class C members to pass the series 7!!!!! In other words, all members of the LLC had to meet the exact same requirements whether they traded or not. But this is completely dependent on who your SRO is. The CBOE was tough.

Maverick74 · Jul 18, 2014

Any reason you can't trade in a retail account? This would be a thousand times easier.

calhawk01 · Jul 18, 2014

Maverick74 said:
Any reason you can't trade in a retail account? This would be a thousand times easier.

Thanks for the explanation Maverick.

Retail is a no no, the reason is low capital.

operator · Jul 18, 2014

calhawk01 said:
Retail is a no no, the reason is low capital.

Good grief...

arbs-r-us · Jul 18, 2014

calhawk01 said:
Thanks for the explanation Maverick.

Retail is a no no, the reason is low capital.

Stick with the pot trade. May be more suitable.

Maverick74 · Jul 18, 2014

calhawk01 said:
Thanks for the explanation Maverick.

Retail is a no no, the reason is low capital.

Then trade FX. You get prop firm type leverage. Hell even futures gives you prop firm type leverage. Your legal fees will wipe out his investment so looks like this is dead in the water.