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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That depends on the jurisdiction.

Some jurisdictions only allow you to do something without a license, if limited number of people
and the money is above a certain level.

Where most of the jurisdictions have the tightest regulations, is when you try to attract a lot
of little investors (retail), as the lawmakers assume this is the category of people that need
the strongest protection.

I suggest you get legal advice for your region.

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