Contract between investor and trader

Hello Traders,

I am a day trader and would like to ask if any of you have ever signed a contract with a private investor? I have someone from my circle of acquaintances who first wants to invest a small amount in my trading, after a good performance there will be a large amount. However, the investor asked me to set up a contract. Does any of you know if there are any model contracts anywhere in the net, or how to make such a contract as simple as possible? I could not really find something with google.
I would be very happy about suggestions

thx!

I would say you need to speak to a lawyer to draft something up

give more details? are u managing capital? or managing account? there is a big difference. managing account can help negate risk on your end.

Hi Mark

From legal point of view you need to have a license to manage clients funds unless you are out of Europe or US. If you dont have a license you are committing a crime. A solution to that is to use a broker who has a necessary license and can give you an umbrella (pamm, mamm accounts). However all the agreements and contracts in such case will be between client and broker (license holder). If you dont have a license for asset mgmt dont sign any contracts because in case of any legal dispute with this client you will be in trouble.