[Tradewinds]

This thread is for the subject of a trading company. What it is, it's benefits, it's detriments, how it would be run, how you would find people to be a part of it, and what it's mission would be. If anyone has experience working in a trading company, or starting a trading company, that would be great. Or if you have no experience or knowledge, but like the idea, or dream of having your own trading company, please share your vision and ideas.

[SIUYA]

only good for either.....
1) leveraging other people/employees
2) limiting liability.....no so much these days as you generally have directors guarantees
3) getting a licence to operate other peoples money

when it comes to trading with others......thats a whole other kettle of fish, but a company structure is a possibility.

If you are an individual why bother with a company, unless there are tax advantages in the jurisdiction you are in.

is the company designed to trade its own money, other peoples money?
is it a trading company or a broker, an advisor.
why bother.....it adds extra admin if its not really needed

[Mysticforex]

Tradewinds,

I have a friend who, after the Dodd/Frank law took effect set out and opened an
IBC ( International Business Corporation ). It is based in Belize ( he is a California resident ). He did so not with the intent of acquiring a Tax Haven, but so he could open a trading acct in the UK ( thru his IBC ) and go back to trading the way he liked.

I am trying to pin him down to do an Interview for us here, a recording of which will be posted here on the site.

I also have 2 friends in Florida, who for the last 18 months have been in the process of opening their own Forex Brokerage. I am trying to get them to do a video as well.

I think a few people will find this information useful.

[ahighpfrmx]

I have been a part of starting an IB (Introducing Brokerage). It primarily deals with non-discretionary client accounts.

I figure there are 3 major pillars to be successful in getting your own trading biz running.

1. Raising Money-- You need money to trade it eh? Also, you need start up cash. Actually you need a surprisingly small amount to get started if you can get guaranteed by a FCM (Futures Commissions Merchant)

2. Successful Trading-- There are plenty of companies in business that can't trade and are still in biz because there better at ^^raising money, but if you can trade successfully there is little to hold you back. If you can trade successfully for yourself, then it's your social responsibility to share that with your fellow man :-)

3. Compliance-- If you pass your series 3 or 30 or series 900,000, compliance should be relatively easy. Being guaranteed by an FCM is helpful since they'll address any issues you have.

[beausifuss]

One good thing about the idea of a trading business is the added focus it can give to your personal plans and objectives with regard to trading. It encourages the formation of a well defined business plan, objectives to be met, as well as a detailed explanation of your competitive advantage. It encourages you to ask critical questions about different strategies, and worst case scenario plans.

[Masterchanger]

Originally Posted by ahighpfrmx »

1. Raising Money-- You need money to trade it eh? Also, you need start up cash. Actually you need a surprisingly small amount to get started if you can get guaranteed by a FCM (Futures Commissions Merchant)

.

Sorry but I'm not following what "getting guaranteed by an FCM" means. BTW I do know what an FCM is.

Thanks,

MC

[Masterchanger]

If one were to have a large enough account say in the 5-10 million, would it benefit to open an IB (for futures) in order to reduce commissions and be a customer of your IB? I understand that there are programs such as CME/CBOT seat leases that could reduce your exchange fees and that brokerage fees are negotiable but would it make sense to be your own IB or open an IB to service your own large account or CTA?

[JnrTrader]

In South Africa, Our financial institutions is governed by the securities services act of 2004 which clearly states that by starting a trading company you will have to comply with the laws of the act.

Personally I think the laws are hard core and make it difficult to set up a company