Are there any Hedge Fund owners here

You have to keep in mind the fact that CFTC does not have regulative authority only over the spot part of the currency market. However they still do regulate the currencies futures contracts as those are being traded through organized exchanges. Because of that CFTC has a common practice of going after some forex traders and companies by falsely claiming in courts that whatever market operations the accused were involved in have more to do with the futures than with the spot market. Then the exact definition of what is futures and what is spot in such case rather becomes an issue of a judge's consciousness and discretion. But this is only a part of the problem. Even if CFTC eventually loses the case in court, they still can be declared winners because the business of the accused has been effectively bankrupt over the period of the investigation and the following legal arguments.

This is a topic I'm interested in also. My business plan which won't go into effect for a couple years consists of the following:

-Taking outside investor money to put into 1 investment pool.
-Dispersing a fixed percentage of profits (if any) either monthly or letting the individual investor compound or rollover into their initial investment principal amount.

Based on the above, which (if any) licenses/exams do I need to pass?

I realize being a CTA is much simpler by trading in other people's accounts, but I believe this does not allow trading with 1 investment pool. Also, how would I be able to split profits with the investor and myself this way? I don't think you can.

I do plan on talking to my state AG (California) but I really have no idea on how to set this up so I'd like a general idea to start off.

Apologies in advance if this is really a noob question and thanks for any help

That is was my original business plan, but i modified it to something much simpler


Most brokers have PAMM software which allows you to trade several peoples account with one master account

it also allows you to allocated a certain of the profits to you/your account.


You are not able to withdraw from there account but you have the power to trade it

They must open an account with the broker themselves and make thier own deposit, you then get power of attorny over there account and can trade it for them

E Forex Group allows that now, and when i called today they said by the end of January they will have the PAMM software that allows you to do the above mentioned

So essientially its like trading one pooled amount, without the need for you to worry about regulations. And you still get your cut of profits.

While i am doing that I am still going to work for my CTA but until then you simply dont need it

You can still incorporate your business etc...just make sure you talk to a lawyer/accountant to get your tax stuff straight.