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Trading for another party

  • #1
  • First Post: Aug 30, 2011 7:20am Aug 30, 2011 7:20am
Hello, I was recently offered to trade for another person that was interested in letting me handle some of their invenstment funds. It's not alot but he said he would start me off at around 20k trading capital and perhaps move up to around 100k if it works out but neither one of us has any idea of how to go about this. I have my own trading account but I can't just put his money in my own personal account because we don't have that much trust between us. I want to set up a deal where I get 50% of the profits or nothing if there is any losses. How could I go about this...
Before Forex I was tall, and clean shaven. Now I am an Ewok.
  • #2
  • Aug 30, 2011 9:38am Aug 30, 2011 9:38am
hey england..... if your trade length is short, perhaps you could settle up on the first of every month...... let him transfer the proper amount to you.....

this way, trust or no trust, the most you could be out would be a couple grand..... and that ain't worth losing sleep over......h
to trade and code, keep both simple... no call to impress....h
  • #3
  • Aug 30, 2011 11:14am Aug 30, 2011 11:14am
You can look into PAMM accounts, that's probably the best way to go to control the risk for both of you. I think that some bigger brokers like Alpari offer these.

You would also be wise to not trade someone else's money in your trading account, because that would be taxed as income for you, not a third party.

A PAMM account is basically the easiest route to trade for someone else and have both of you protected.
  • #4
  • Sep 5, 2011 3:12pm Sep 5, 2011 3:12pm
Quoting beachallstar
You can look into PAMM accounts, that's probably the best way to go to control the risk for both of you. I think that some bigger brokers like Alpari offer these.

You would also be wise to not trade someone else's money in your trading account, because that would be taxed as income for you, not a third party.

A PAMM account is basically the easiest route to trade for someone else and have both of you protected.
That sounds like a good idea. I'll look into this weekend. Thanks for the advice.
Before Forex I was tall, and clean shaven. Now I am an Ewok.
  • #5
  • Sep 5, 2011 4:24pm Sep 5, 2011 4:24pm
Or you can simply let him open an account on his name on the broker that he prefer, and then you both sign and fill the POA (ask to the broker about it), and you'll be legally entitled to trade on his own account.
At that point, he will have to withdraw 50% of profits everymonth and give it to you.
Hope it helped
  • #6
  • Last Post: Sep 5, 2011 4:28pm Sep 5, 2011 4:28pm
Quoting tunera
Or you can simply let him open an account on his name on the broker that he prefer, and then you both sign and fill the POA (ask to the broker about it), and you'll be legally entitled to trade on his own account.
At that point, he will have to withdraw 50% of profits everymonth and give it to you.
Hope it helped
In this case he can just refuse to pay anything.
In any case waiting for the england33's opinion about pamm accounts.
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