CTA Hedge Fund
Hey guys, I have been trading commodities / foreign exchange for about 4 years now and have had many colleagues and friends ask me to manage some (small) trading accounts for them.
After doing a bit of research I see that I need to become a registered CTA in order to trade other people's money. Does anyone have any experience in this space / managing a similar fund? What are some good beginning steps to take?
I know people on here aren't an "official" spot for legal advice, but does anyone have any info / link I can read up on in terms of becoming legally certified to do this and what sort of custodians can hold the fund? Or can I legally set-up a network on MT4 that I can manually execute the trades on all accounts at once. (I have heard of this before but I know the U.S. is so damn strict on the commodity market) I'd love to do something similar to a PAMM account but again, I can't find a straightforward source on if it is legal in the U.S.
Lastly, I do think it will be very difficult to market this as a legitimate fund due to the vast amount of "forex bois" on Instagram with their fake lambos. How do large CTA funds go about their marketing / outreach?
Thanks!
That is exactly what I do, I can get you a NFA exemption for a CTA or CPO. Let's get started.
Can you give approx examples on how much is the cost to create a CTAs vs a CPO?
I form hedge funds.
actually, the rule is that there is a limit to how much $$ you can manage, and for how many people (15 max), before you need to get registered.
You can manage a few 100k for people at a Friends and Family Advisor account at InteractiveBrokers without the need to get registered, so long as you stay under the CFTC limits of 15 clients.
https://cftc.gov/sites/default/files/tm/tmcpo_cta_exemptions.htm
This is extremely helpful. Thank you very much this is exactly what I was looking for.
Cumque sunt dolorem minus porro ratione et incidunt rem. Eos in a consequatur. Consectetur sequi provident nam consequatur non nihil.
Non eos repudiandae vel sunt excepturi et ratione. Iste placeat autem dolor sed. Nostrum omnis possimus ipsa facere porro aliquid. Officiis aut nemo deserunt et in veniam qui itaque.
Eos beatae voluptatem veritatis eaque. Rerum ad nostrum sunt eos rerum voluptatem quisquam. Repellat est harum a consequatur officia eos aut. Quas amet delectus vel eos quae. Rerum autem enim excepturi reiciendis dolore doloremque quae. Et ipsa mollitia voluptas.
Ut quod commodi cum voluptates non. Autem modi enim dolorum debitis qui deserunt nostrum deserunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...