How can a prop firm raise capital from friends without having a hedge fund license? - Traders Hideout | futures io social day trading
futures io futures trading


How can a prop firm raise capital from friends without having a hedge fund license?
Updated: Views / Replies:2,345 / 4
Created: by sibichak Attachments:0

Welcome to futures io.

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

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

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

 
 
Thread Tools
 

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

 
Chennai + TamilNadu/India
 
 
Posts: 1 since Oct 2017
Thanks: 2 given, 0 received

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?

 
 
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
 
Market Wizard
Gits (Hooglede) Belgium
 
Trading Experience: Master
Platform: NinjaTrader, Proprietary,
Broker/Data: Ninjabrokerage/IQfeed + Synthetic datafeed
Favorite Futures: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
 
rleplae's Avatar
 
Posts: 2,955 since Sep 2013
Thanks: 2,404 given, 5,486 received

Answer
This post has been selected as an answer to the original posters question Answer


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.

Follow me on Twitter Visit my Facebook Visit my futures io Trade Journal
The following 3 users say Thank You to rleplae for this post:
 
 
Jacksonville, Florida United States
 
Trading Experience: Intermediate
Platform: NT8, Fully custom
Broker/Data: NT Brokerage, Interactive Brokers
Favorite Futures: ES
 
Jasonnator's Avatar
 
Posts: 75 since Dec 2014
Thanks: 21 given, 48 received

Start reading about incubator funds. These are what I think you're looking for (your own money, without big $$$ of full hedge fund). If you're successful, then you can convert it into a full fund. As soon as you trade other people's money, you have to become a full blown fund. Full blown funds allow slots for friends and family which can be different terms that your standard well qualified investor.

The following user says Thank You to Jasonnator for this post:
 
 
Johns Creek GA/USA
 
Trading Experience: Intermediate
Platform: ThinkorSwim, IB
Favorite Futures: Emini ES
 
Posts: 6 since Aug 2016
Thanks: 33 given, 0 received

You might look into the Friends & Family/Financial Advisor accounts at Interactive Brokers. They allow you to trade multiple accounts with a few ways to allocate trades across them. I don't think it's a practical way to run a hedge fund, but it might help get you started.


Sent from my iPhone using futures.io


 



futures io > > > How can a prop firm raise capital from friends without having a hedge fund license?
Thread Tools



Upcoming Webinars and Events (4:30PM ET unless noted)
 

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now
 

$1,000 in Amazon Gift Cards being given away right now from GFF Brokers

Right now
 

$250 Amazon Gift Cards with our "Thanks Contest" challenge!

Right now
 

Show us your trading desks and win over $5,000 in prizes w/Jigsaw Trading

August
 

Webinar: Suri Duddella (TBA)

Elite only
 

Webinar: Richard Bailey (TBA)

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Options prop firm marketvoyager Trading Reviews and Vendors 10 November 17th, 2015 07:11 AM
tsurucapital.com (Japanese Prop Firm) scrooge33 Trading Reviews and Vendors 3 October 1st, 2015 06:56 AM
Looking for a prop trading firm Meku Trading Reviews and Vendors 3 June 27th, 2015 06:55 AM
Looking for Futures Prop Firm like TopStep booker777 Trading Reviews and Vendors 6 November 18th, 2014 12:29 AM
How do you join a prop trading firm? Yuri57 The Elite Circle 5 August 30th, 2013 07:26 AM


All times are GMT -4. The time now is 04:18 AM. (this page content is cached, log in for real-time version)

Copyright © 2019 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