How can a prop firm raise capital from friends without having a hedge fund license? | Traders Hideout


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How can a prop firm raise capital from friends without having a hedge fund license?

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Chennai + TamilNadu/India
 
 
Posts: 1 since Oct 2017
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How can a prop firm raise capital from friends without having a hedge fund license?

My understanding is that to start and run a proprietary trading firm, one does not need to get a Capital markets license or a hedge fund license, because only the shareholders' capital is going to be traded.

I plan to start one such small proprietary trading firm(<20k$). I intend to raise money from friends and family. As I'm raising funds from people who are technically unrelated to the firm, do I need to get a license?

How do prop firms generally raise capital without a license?

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