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Info on starting to managed account

  • #21
  • Apr 14, 2008 2:08pm Apr 14, 2008 2:08pm
Quoting DollaBill
The initial idea was to split profits 50/50 with clients aside from what they invested. We take over the account for 90 days, continue to pay a monthly percentage after the initial 90 days.

For the record, I am not soliciting for service, just trying to find out more info on the legal way to go about this.
you would set up a limited liability partnership. send proxy votes so that 2/3 majority vote would constitute in a trading action begining. if you are employing auto systems, then send out a vote ur investors to choose. u need to be able to explain what the systems do, otherwise no idiot is going to invest in you.

the LLP is the cheapest way to go without raising alarms.

its best not to try reinvent the wheel. you have zero credentials, you didn't graduate from a top ivy league, you dont have quants under your house. the best you can offer is a small incentive fee (i wouldn't dare charge admin fee) such as 30% of the profits. lol no one is going to put up with you taking 50% of the profit unless you are SAC capital.

also you would need to provide some track records (at least a year) to prove that you are profitable.

stay transparent, simple and most of all dont try reinvent the wheel.
{Promotion Removed}
  • #22
  • Apr 16, 2008 12:05am Apr 16, 2008 12:05am
Quoting jjk2
you would set up a limited liability partnership. send proxy votes so that 2/3 majority vote would constitute in a trading action begining. if you are employing auto systems, then send out a vote ur investors to choose. u need to be able to explain what the systems do, otherwise no idiot is going to invest in you.

the LLP is the cheapest way to go without raising alarms.

its best not to try reinvent the wheel. you have zero credentials, you didn't graduate from a top ivy league, you dont have quants under your house. the best you can offer is a small incentive fee (i wouldn't dare charge admin fee) such as 30% of the profits. lol no one is going to put up with you taking 50% of the profit unless you are SAC capital.

also you would need to provide some track records (at least a year) to prove that you are profitable.

stay transparent, simple and most of all dont try reinvent the wheel.
Well, we are up and running! You just have to ask the Right people the Right questions to get the info that you are looking for.
I didn't have to set up an LLC, I don't have to show a track record, and one of our services offered does split profit 50/50.
Great advice on the wheel invention, but you don't know where I graduated from, or my credentials, or what and who I have setup. Who says an Ivy league education is the top standard for success?
  • #23
  • Apr 16, 2008 12:07am Apr 16, 2008 12:07am
Quoting mike999
Series 3 is also used for Forex. But you can't say that you will never lose clients fund in a contract. Term guarentee is tossed around in the other businesses, just not this one
Thanks for this info, but I had found this link already prior to opening this one. There where some unanswered questions, but I found what i was looking for and thanks to those with the positive responses.
  • #24
  • Apr 16, 2008 6:55am Apr 16, 2008 6:55am
50/50 ?

I guess every client gets the manager they deserve
  • #25
  • Apr 16, 2008 4:45pm Apr 16, 2008 4:45pm
Quoting DollaBill
Well, we are up and running! You just have to ask the Right people the Right questions to get the info that you are looking for.
I didn't have to set up an LLC, I don't have to show a track record, and one of our services offered does split profit 50/50.
Great advice on the wheel invention, but you don't know where I graduated from, or my credentials, or what and who I have setup. Who says an Ivy league education is the top standard for success?
you seem to be answering your own questions. whats the point ?

you asked for advices and I gave it to you. Who you are, I could care less. If you think you know better go do it. make money. get featured on forbes!
{Promotion Removed}
  • #26
  • Apr 17, 2008 1:25pm Apr 17, 2008 1:25pm
Quoting DollaBill
Well, we are up and running! You just have to ask the Right people the Right questions to get the info that you are looking for.
I didn't have to set up an LLC, I don't have to show a track record, and one of our services offered does split profit 50/50.
Great advice on the wheel invention, but you don't know where I graduated from, or my credentials, or what and who I have setup. Who says an Ivy league education is the top standard for success?
Hmm... I don't think anyone on here told you what you Had to do. Setting up an LLC is for your protection, just one more wall between you and the sueing client. No one said you had to.

No one said you Have to have a track record, or charge less either. When your clients see their statement, and look at the next guy only charging 25% and he has a 10 year track record of earning money for their clients... well it'll be interesting.

I certainly didn't start mine with a track record. I had several warm market clients that had been asking for years for me to manage vs teaching them to trade. I used those warm clients to build a track record. I also disagree'd with being paid if I didn't make money for the clients, so instead of the standard 2/20 I decided not to charge a management fee and charge a flat 30% (25% for a few grandfathered clients).

One thing is for sure, it is amazing people aren't willing to pay, say, $1,000 to learn how to manage and trade their own money. They are usually willing to write you a check for 50k though.

As far as advice I would add... set a minimum investment now and stick to it. Unless it's just a self trader that your earning an IB rebate on, believe me when I say you don't want clients with 5k or less. If you have 1 client with a 5k account and 10 clients with 50k accounts each, you will get more phone calls from the 5k account holder than the other 10 combined. I have a 20k minimum, but most are 50k plus. Just make sure your clients have the money to be investing in the forex, make sure they aren't people taking out a second mortgage on their house to scrap up 5k for you.

Also, whatever Broker you are partnering with use their compliance department to the fullest. Ask questions and have proof they replied with answers. They have salaried compliance officers that are there to manage their risk with IB's literature, websites, and promotion. You don't want the NFA coming to you, you want them going to the broker your promoting.
The basis of a democratic state is liberty. ~ Aristotle
  • #27
  • Apr 18, 2008 8:35am Apr 18, 2008 8:35am
Thanks for the info. I guess that previous response by me sounded a little harsh..I'm kinda in the same situation as you were in the beginning. We have a core group of people who were coming to learn about forex, but just couldn't get the strategies down enough to make money for themselves. After several loses, you know the questions of would you manage an account for me started to arise. I was always against managing other peoples money, becuase I have know how people are about a little bit of money. Also, becuase of previous investment scams, I knew what not to do!

I TOTALLY agree with you on more hassle from the $1,000 account holders than people with 20k minimum. The information that we have in the $1,000 contract is pretty straight forward. It is worded so that all questions are answered in the contract so we shouldn't get a lot of calls. That is the 50/50 split contract. At the end of 90 days, I'm pretty sure they will be happy with their return for doing nothing. Our other contracts are of the 10k and up range that are comparible to other managed account companies. The 1k accounts are our teaser account to get the 20-50k accounts.

We have been working diligently with Mbtrading. We have established a reliable contact within the complaince department and he has helped out tremendously with the legal stuff and paperwork needed.
  • #28
  • Apr 18, 2008 9:19am Apr 18, 2008 9:19am
Quoting Vensik
I have a 20k minimum, but most are 50k plus.
I would recommend to DollaBill a 50K minimum and with no exceptions. My reasons are the same as Vensik's - just a different view on client entry levels.

It looks like you're in the US so most of your clients may come from there.

However, please bear in mind that you are not allowed to solicit investment business from EU clients and most other jurisdictions worldwide. Your website should make that clear. I mention this not because you might but for the benefit of others reading this who may consider this route in the EU. And that goes for whether you have the US qualifications referred to or not.

I commented more on that with my view here in the Setting up a forex business/hedge fund thread last year and it is still relevant today.

I would like to take this opportunity to wish you the very best for your forthcoming venture. Sir, good luck and may the forex Gods smile on you.
Do not focus on making money; focus on protecting what you have.
  • #29
  • Apr 18, 2008 1:31pm Apr 18, 2008 1:31pm
Quoting Why Oh Why
I would recommend to DollaBill a 50K minimum and with no exceptions. My reasons are the same as Vensik's - just a different view on client entry levels.

It looks like you're in the US so most of your clients may come from there.

However, please bear in mind that you are not allowed to solicit investment business from EU clients and most other jurisdictions worldwide. Your website should make that clear. I mention this not because you might but for the benefit of others reading this who may consider this route in the EU. And that goes for whether you have the US qualifications referred to or not.

I commented more on that with my view here in the Setting up a forex business/hedge fund thread last year and it is still relevant today.

I would like to take this opportunity to wish you the very best for your forthcoming venture. Sir, good luck and may the forex Gods smile on you.
Thanks for the info, but we are not going to have a website, and not soliciting for clients. We have clients, quite a few actually. Strictly word of mouth. We have enough in my local area that will suffice. We are not trying to grow to be the biggest or best, just trying to help a few people to become financially stable.
  • #30
  • May 4, 2008 11:34pm May 4, 2008 11:34pm
Quoting Vensik
Hmm... I don't think anyone on here told you what you Had to do. Setting up an LLC is for your protection, just one more wall between you and the sueing client. No one said you had to.

No one said you Have to have a track record, or charge less either. When your clients see their statement, and look at the next guy only charging 25% and he has a 10 year track record of earning money for their clients... well it'll be interesting.

I certainly didn't start mine with a track record. I had several warm market clients that had been asking for years for me to manage vs teaching them to trade. I used those warm clients to build a track record. I also disagree'd with being paid if I didn't make money for the clients, so instead of the standard 2/20 I decided not to charge a management fee and charge a flat 30% (25% for a few grandfathered clients).

One thing is for sure, it is amazing people aren't willing to pay, say, $1,000 to learn how to manage and trade their own money. They are usually willing to write you a check for 50k though.

As far as advice I would add... set a minimum investment now and stick to it. Unless it's just a self trader that your earning an IB rebate on, believe me when I say you don't want clients with 5k or less. If you have 1 client with a 5k account and 10 clients with 50k accounts each, you will get more phone calls from the 5k account holder than the other 10 combined. I have a 20k minimum, but most are 50k plus. Just make sure your clients have the money to be investing in the forex, make sure they aren't people taking out a second mortgage on their house to scrap up 5k for you.

Also, whatever Broker you are partnering with use their compliance department to the fullest. Ask questions and have proof they replied with answers. They have salaried compliance officers that are there to manage their risk with IB's literature, websites, and promotion. You don't want the NFA coming to you, you want them going to the broker your promoting.
i totally agree...its no point....notice how he suddenly became "up and running" within less than 24 hours of my original post explaining some of the precaustions required to start this business. i dont know just makes me wonder if you could get it up and running so fast, why the original poster would start this topic....out of all places in a forum such as this.
{Promotion Removed}
  • #31
  • May 12, 2008 4:33pm May 12, 2008 4:33pm
Quoting jjk2
i totally agree...its no point....notice how he suddenly became "up and running" within less than 24 hours of my original post explaining some of the precaustions required to start this business. i dont know just makes me wonder if you could get it up and running so fast, why the original poster would start this topic....out of all places in a forum such as this.
The reason I started this post was to get some "HELPFUL" information, not criticisms of what can't be done, etc. And it wasn't less than 24 hours to get the business up and running. It actually took alot of planning/research, and talking to the "RIGHT" people. This is not some get rich quick scheme and wasn't meant as a solicitation of business from anyone here at FF. I could care less what you think really.

So if you and the other critics have run out of negative things to say, try to find something positive within the thread that may help you in the future! How bout dat!
  • #32
  • May 13, 2008 7:01am May 13, 2008 7:01am
i think dont try a manage account with a broker .
  • #33
  • May 13, 2008 7:23am May 13, 2008 7:23am
this is an excellent thread ...very helpful. do any of you use currenex as its the dydtem i am planning to go with.. ?
  • #34
  • May 13, 2008 7:31am May 13, 2008 7:31am
Quoting beekeeper
this is an excellent thread ...very helpful. do any of you use currenex as its the dydtem i am planning to go with.. ?
What broker are you going to use for currenex bee?
  • #35
  • May 13, 2008 7:38am May 13, 2008 7:38am
London Capital Group.. the name of the system is Capital Forex Pro. They have done a good deal with us to get started. I will hopefully be trading live with clients mioney 1st June. My intention is to charge no mgt fee and a straight 30% of profits on a quarterly basis. from looking at other threads this looks quite common.

I am very keen to hear feedback from guys using Currenex ...especially if they are using it to "manage accounts"

Please note I am just trying to find out info and not advertise or anything of the such as I have been banned for a similiar post some time ago,. ?
  • #36
  • May 13, 2008 7:54am May 13, 2008 7:54am
Quoting beekeeper
London Capital Group.. the name of the system is Capital Forex Pro. They have done a good deal with us to get started. I will hopefully be trading live with clients mioney 1st June. My intention is to charge no mgt fee and a straight 30% of profits on a quarterly basis. from looking at other threads this looks quite common.

I am very keen to hear feedback from guys using Currenex ...especially if they are using it to "manage accounts"

Please note I am just trying to find out info and not advertise or anything of the such as I have been banned for a similiar post some time ago,. ?
The currenex software does not allow for money management. It has to be done on the back end by the broker. Do you know how LCP's money management is set up? Also, do you know how many banks are attached to their feed?
  • #37
  • May 13, 2008 8:02am May 13, 2008 8:02am
I am meeting with them on Thurs so plan to get those questions answered. They have a management system that seems perfect for account management. Have you had any experience with em or Currenex ?
  • #38
  • Last Post: May 13, 2008 8:07am May 13, 2008 8:07am
Quoting beekeeper
I am meeting with them on Thurs so plan to get those questions answered. They have a management system that seems perfect for account management. Have you had any experience with em or Currenex ?
No but I have yet to find many brokers that offer crnx with MM. I think ADM and PFG are the only two I know of. It has been a while since I last checked so there very well could be more.
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