Trading investors money on his broker's account
Hello, how are you all :)
I read the thread with the discussion about what legal actions/licences one needs to take in order to trade investors money.
But I'm curious how the following situations would be interpreted in the ayes of the law:
A person who has a lot of money makes a trading account in one of the forex brokers like IB/Dukascopy/FXCM etc (investing 100k +-), and gives me the ID and Password to the trading platform (meaning that I can only trade the money within the software, without any possibility to withdraw it, deposit it)
All based on trust.
Him trusting in my ability to trade, and me trusting him that if I make a profit he will reward me with the percentage we agreed upon.
Is there some strict law that prohibits this? Or is this the grey area/a possible way to avoid all the LLC/LP bureaucracy?
A respectable Bump
If a guy has 100k to drop on you trading He can afford to check with a securities lawyer.
Meaning that he would check with his securities lawyer to sue me?
Or make this legal?
Regardless, that's not what I asked.
I want this to make as much hassle free for my investor as I can. That's the main reason for my idea.
Thank you
I would be more concerned about the possibility of him closing his account at his discretion and leaving you with nothing.
This is basic series 7 shit - the answer is yes, this is illegal and not only can he sue, you can also go to prison for violating securities law.
Zane, I am not concerned with that. I am not investing my money in markets, so if he decides to not share profits with me then it's on his conscience.
Sling Shot, thanks for the discouragement. I Want someone to tell me how it is, but it would be great if you could elaborate on your statements, tell me how serious that offense is (maybe its something like Piracy, aka illegal but everyone still does it), how would someone check why would someone check. Can he sue me just for asking him the money? Or only if he invests, and if he invests then why would he sue if he lets me use his trading account, he would be letting me manage his assets thus being responsible.
Just share your insight more, thanks
Google "why do I need a Series 7 license"
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