Hedge Fund or Managed Forex Accounts

I am seeking resources and information on whether to pursue starting a hedge fund or running managed forex accounts. What are the advantages/disadvantages of each? I've seen websites referring specifically forex hedge funds--are these different from a "regular" hedge fund? Any information is greatly appreciated.

Tyler

so you think of starting a hedge fund because you were able to double your account during a market which is in a selloff mode like never seen before?

Me thinks you are grossly under qualified.....

i'm sure he would appreciate help from the wiser members here...
and i myself too would be interested in learning more about this subject

anyway, tyler812 here's a start http://www.forexfactory.com/showthread.php?t=8229

lol...nothing more to add to our funds managers

I've been trading for years, and am by no means a noobie unaware of the history-making market conditions. A hedge fund (or similar venture) is something I have been contemplating and am beginning to investigate as a possibility during the next couple of years or so, so I'm just beginning research on the topic and would appreciate any useful replies. Thanks.

BBPI_fxtrader: I had already read that thread but thanks for the post!

Tyler

To open a fund will require registration in a jurisdiction of your choice. I recommend Singapore, London or an offshore location. To build the structure will cost at least 100K. You can set up prime brokerage through one of the major banks with an fx desk (i.e. Credit Suisse, UBS, Deutsche, Goldman), or you can use a third party PB, such as Newedge (their minimum is 5M per client deposit). You can host a client at a major and clear through a Newedge via "Give up Agreements." The PB set up takes about 8 weeks and involves in depth due diligence on yourself and your trading. You will deal with every department. They will probably ask for an AIMA doc (industry standard for fund managers) which outlines all the details about your trading protocol. It's about 30 pages of DD. If you set up through a 3rd party PB, you can manage accounts under POA rather than set up a fund. I don't recommend an FCM retail broker, they are a totally different ball game.
Good Luck

Hey Tyler

I know you are just gathering info, but my recommendation is to find a qualified person in your area to meet face to face with. Set up a meeting with a lawyer who deals in this kind of stuff and get the RIGHT information. Depending on where you live and the laws there you will need to do certain things, and make sure you do things right. This is not only to protect yourself, but also your clients.

Good luck!
Mike