Managing accounts as a CTA in 2013

Hello Forum,

Currently I'm an independent trader looking to make the move into managing accounts/getting qualified as a CTA.

My understanding from this thread ( http://www.forexfactory.com/showthread.php?t=212406 ) is that if an account manager were to be managing under 15 clients and have less than 250,000 AUM, as well as not be involved in soliciting clients, then that manager would not need to be registered with the NFA or CFTC as a CTA.

Given that the thread is in the ballpark of 3 years old however, I'm wondering if these allowances still apply.

Is anyone aware if there've been regulatory changes in regards to these allowances, or changes to the process in general, since the beginning of 2010?

Any information on the current state of the process of transitioning from an independent trader to a CTA managing accounts would be greatly appreciated!

CDM

Hey CDM. You just need to pass your series 3 exam and you actually don't need a sponsor to take the exam unlike the series 7. If you plan on trading forex for you clients you also need to pass your series 34 Forex exam. You can prep for these exams using online prep tools or ordering prep books with retired exams and material geared towards helping you pass these exams. In addition you will be required to register with the NFA and the CFTC. There is $200 non-refundable registration fee. You cannot have a criminal record in the past x years. I cant remember how many years. There is a $750 membership dues for the NFA and there are dues required for the CFTC as well.

You must complete the online form 7R and also form 8-R. You must complete fingerprint cards as well. Good luck and go for it. With all the new laws the CFTC and NFA keep making to crush U.S. retail forex who knows how much longer it will be so easy to become one.


Here is a link to the proficiency requirements for becoming a CTA http://www.nfa.futures.org/NFA-regis...uirements.HTML
Here is a link to how to registration process http://www.nfa.futures.org/NFA-regis...cta/index.HTML

Maxsmart,

That's excellent, thanks so much for the info! Not having to procure a sponsor is a nice convenience, always thankful for small blessings. Looks like your post and the links will cover nearly any proficiency/registration questions I could imagine.

I'd still love to get my hands on information regarding the current state of the 250,000 AUM allowance if anyone has input, retaining a client or two before tackling the exams might be a small convenience if nothing too important.

I found this under the explanation of CTA on the NFA site:
"Registration is required unless:
You have provided advice to 15 or fewer persons during the past 12 months and do not generally hold yourself out to the public as a CTA"

It doesn't mention the compensation or the 250k limit, so I'm a bit unclear as to how to interpret that in the context of required registration. If an answer remains elusive I'll contact them next week.

I recommend you read all of Title 17. Use the "browse previous" a "browse next" functions in the page linked below. Get on the NFA and CFTC websites and spend a couple days reading anything on there. If you have any questions, put them all in a list and get on the phone and call them, or find out how to email them and do that.

There are interesting things to note in Title 17 about what you ca do if you are located outside the country. If you look carefully, you will see many loopholes and some of them are generous enough to drive a truck through.

http://www.ecfr.gov/cgi-bin/retrieve...0.1.1.4.1.7.11

Many thanks, I'll take that advice.

From a brief read through of what was included in your post, it appears that (a)(2) directly addresses my question. Given the rest of the information however I see what you're alluding to; if not specifically than by the nature of the language- and I plan on exploring the sites in detail.

Thanks again.