any broker that allows 1 login for multiple accounts
I have an IB account and love interactive Brokers. It allows me to have 1 login where I only click once to buy a stock and all accounts, which are different individuals, will follow the buy order. Problem is interactive brokers only allows 15 accounts under 1 login?
My question is: is there another company that provides such a mechanism?
I am only an individual investor and has no institutional backup.
Please educate and shoot me an email or reply here.
Thanks so much.
stocksguy66 [AT] yahoo [DOT] com
(account too new to post email)
You are allowed to have max 15 customers (or $26M AUM) under federal rules. If you have more than 15 customers (or exceed $26M AUM), you have to register as an RIA (registered investment adviser). This is exactly the point with your broker.
Last edited by Alphachase; March 14th, 2014 at 07:09 PM.
I'm not a lawyer and can't qualify any legal advice, but from what I know:
You can probably achieve some degree of pyramiding of the funds while complying with any look-through provisions, effectively increasing your number of individual "investors". It depends on the distribution of sizes of investments. But the accounting costs generally pile up in this structure and you might as well form a single pooled entity.
Generally, people try to avoid registering as an RIA for as long as they can, even after they go past $100M in hard dollar "AUM". You do so by discounting AUM that does not meet the definition of "regulatory capital" stipulated in Form ADV part 1.
In most case cases, registering as an RIA is a function of business development, not a function of AUM or number of investors. The due diligence checklist of the largest sources of institutional capital (charities, endowments etc.) generally includes SEC registration, so if you are reaching the size where you start to seek institutional capital, you will end up registering as an RIA to get their business. It just happens that this size that I'm speaking of is often in the order of >$100M.
Edit: Regarding the number of investors - the governing law is the 1940 Investment Act. The goal of keeping your number of investors down is to avoid having to register as a mutual fund, which comes with all kinds of compliance issues. If you're not going after institutional capital, you can probably claim exemption under Section 3(c)1, which limits you to 100 investors.