Managing futures account for friends - futures io
futures io futures trading



Managing futures account for friends


Discussion in Emini and Emicro Index

Updated by Thxo
      Top Posters
    1. looks_one GFIs1 with 2 posts (0 thanks)
    2. looks_two Thxo with 2 posts (1 thanks)
    3. looks_3 ferdy with 2 posts (0 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
    1. trending_up 1,189 views
    2. thumb_up 2 thanks given
    3. group 3 followers
    1. forum 7 replies
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Thread Tools Search this Thread
 

Managing futures account for friends

  #1 (permalink)
Toronto, Ontario
 
 
Posts: 11 since Dec 2013
Thanks: 4 given, 3 received

Managing futures account for friends

Hi everyone,

First of all, my apologies if this question has been asked and answered already....i searched but couldnt find any.

I primarily trade TF, CL and sometimes GC and ES. My performance has been getting better over the months and lately some friends have asked if I could manage their futures trading account.

My question is:

1. Which broker is best recommended for use to have this type of an arrangement (since I assume myself and my friends would need to be with the same broker for block allocation to work!)

2. How does the profit sharing work? I understand that we (me and my friend whose account I will be trading will come to a mutually agreed % split and that I will be given a limited Power of Attorney), but does he withdraw the profits then give me a check for my % of the profit OR is there a way whereby the broker can send me a check directly.....hence both myself and the account holder are protected.

Thank you for your answers in advance.

F.

Reply With Quote

Can you help answer these questions
from other members on futures io?
Convert NinjaTrader NT7 indicator to Tradestation EasyLanguage and RADARSCREEN
Platforms and Indicators
Issue meeting order entry conditions
Elite Automated NinjaTrader Trading
Last 5 minutes Label
ThinkOrSwim
Moving average with Lag reduction
NinjaTrader
Linux?
ThinkOrSwim
 
 
  #3 (permalink)
NC, USA
 
Experience: None
Platform: None Yet
Trading: Guitar
 
MrYou's Avatar
 
Posts: 403 since Jun 2011
Thanks: 618 given, 195 received


This is recall from what I've read/glanced over...


ferdy View Post
1. Which broker is best recommended for use to have this type of an arrangement (since I assume myself and my friends would need to be with the same broker for block allocation to work!)

A broker that provides you the ability to trade for/manage multiple accounts for "friends and family". 15 people is the legal maximum in the U.S. Interactive Brokers is a good example. See their site for more info. You'll have to determine any legal restrictions in your home country.


ferdy View Post
2. How does the profit sharing work? I understand that we (me and my friend whose account I will be trading will come to a mutually agreed % split and that I will be given a limited Power of Attorney), but does he withdraw the profits then give me a check for my % of the profit OR is there a way whereby the broker can send me a check directly.....hence both myself and the account holder are protected.

I would reference Interactive Brokers information for more details. I can't imagine why you would need any sort of Power of Attorney (limited or otherwise). Basically they are just giving you legal permission to manage the trades performed on behalf of the account.

I would absolutely not do this until you have a proven 1-3 year track record using real money and can provide them an equity curve chart and maximum drawdown and any other information that they can easily understand to 1) keep your relationship positive and 2) to save face. I would also establish legally binding rules such as how often they can receive reports and when they can make withdrawals.

If you are a profitable trader, provide your track record, but still stress over and over that this could all end tomorrow and they could lose all the money they've invested with you. Don't paint a pretty picture just to get their money. They should absolutely not be investing money that they can't stand to lose.

You should absolutely consider all the potential negative affects this could have on your relationship with these people.

Reply With Quote
The following user says Thank You to MrYou for this post:
 
  #4 (permalink)
Toronto, Ontario
 
 
Posts: 11 since Dec 2013
Thanks: 4 given, 3 received

Thanks MrYou, for your response.

I did take a look at IB already but was wondering if you or anyone knew how does the profit splitting part work?

My friends would only ever invest money that they can afford to lose so no fear of hurt feelings if there is a loss.
Suppose we have an understanding whereby there is a 50-50 profit split, would they withdraw the profit amount then write me a check for half of the profits OR does IB have a system of splitting the gains on a agreed upon profit split %?

Thanks again.

F.

Reply With Quote
 
  #5 (permalink)
Legendary Market Wizard
Switzerland
 
Experience: Intermediate
Platform: Investor/RT
Broker: IB / DTN
Trading: Futures
 
Posts: 5,044 since Feb 2012
Thanks: 5,114 given, 10,564 received


ferdy View Post
Thanks MrYou, for your response.

I did take a look at IB already but was wondering if you or anyone knew how does the profit splitting part work?

My friends would only ever invest money that they can afford to lose so no fear of hurt feelings if there is a loss.
Suppose we have an understanding whereby there is a 50-50 profit split, would they withdraw the profit amount then write me a check for half of the profits OR does IB have a system of splitting the gains on a agreed upon profit split %?
F.

With IB you can profit from an automated service for traded accounts that are not yours. You define the percentage
of profit - this will be transferred by IB every end of month to your IB account. So you are alimented all the way you
are profitable. Plus every attached account can be differently for the percentage of winners.

Not sure if it works with the friends and family account but certainly with the advisor account.

GFIs1

Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
 
  #6 (permalink)
West Java
 
 
Posts: 145 since Apr 2014
Thanks: 143 given, 122 received


GFIs1 View Post
With IB you can profit from an automated service for traded accounts that are not yours. You define the percentage
of profit - this will be transferred by IB every end of month to your IB account. So you are alimented all the way you
are profitable. Plus every attached account can be differently for the percentage of winners.

Not sure if it works with the friends and family account but certainly with the advisor account.

GFIs1


Plus ... with IB you can use this (rapacapintro.com), if you want to expand your career as a Fund Manager.


Reply With Quote
 
  #7 (permalink)
Legendary Market Wizard
Switzerland
 
Experience: Intermediate
Platform: Investor/RT
Broker: IB / DTN
Trading: Futures
 
Posts: 5,044 since Feb 2012
Thanks: 5,114 given, 10,564 received


Thxo View Post
Plus ... with IB you can use this (rapacapintro.com), if you want to expand your career as a Fund Manager.


Selamat Datang!

Thanks for the link - do you have experience with Rapa?
Have to check the conditions for it

GFIs1

Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
 
  #8 (permalink)
West Java
 
 
Posts: 145 since Apr 2014
Thanks: 143 given, 122 received


GFIs1 View Post
Selamat Datang!

Thanks for the link - do you have experience with Rapa?
Have to check the conditions for it

GFIs1

Hello Sir,

Thank you so much for the kind words,
Unfortunately I do not have any successful attempts with them just a failed one (My current acc DD just too big for RAPA standard) so i can't speak more than that. But, if my eyes (or maybe my taste ... ) not failed me, i think they are a genuine one, especially if you look at Major League Leader Board. But, of course its still not come close to other similar and long standing venue like Covestor.com, which is using RIA model and just for Stocks only.

Many Thanks

Thxo,


Reply With Quote
The following user says Thank You to Thxo for this post:



futures io Trading Community Traders Hideout Emini and Emicro Index > Managing futures account for friends




Upcoming Webinars and Events
 

Understanding Order Flow Stop Runs & Icebergs w/Bookmap

May 28
 

Free BloodHound Licenses to everyone!

June
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts