how to set-up a tiny fund

This is a discussion on how to set-up a tiny fund within the Trading Systems forums, part of the Methods category; OK, I will look at that too. It has to be simple too, especially for the investors (who are individuals). ...

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Old Mar 9, 2012, 9:07am   #17
Joined Mar 2012
Re: how to set-up a tiny fund

gayaku started this thread OK, I will look at that too. It has to be simple too, especially for the investors (who are individuals). I'm afraid they won't bother if it seems too much trouble or if the profits are taxed at their highest tax rate.

What are the best persons/entities which could help me : UK government, accountant, FSA, HM Revenue & Customs... ?

You're right, I'd rather avoid trading family and friends money. In fact, it's more ex colleagues (although friends too), who work in finance, have money and understand the risk, I won't ask to somebody outside of finance. Also, if I have a proper structure, I can raise money from "strangers". I believe what I do can interest a lot of people, thanks to the potential return and the diversification, but it has to be simple and tax-efficient, otherwise nobody will bother for 20 or 50K.

cheers
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Old Mar 9, 2012, 5:09pm   #18
 
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Re: how to set-up a tiny fund

What are the best persons/entities which could help me : UK government, accountant, FSA, HM Revenue & Customs... ?

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Old Mar 9, 2012, 5:18pm   #19
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Re: how to set-up a tiny fund

gayaku started this thread I don't understand why you talk about scams and Ponzi scheme ?!

What's so unusual about being reasonably successful in investment, and want to start trading other people money? And to want to start with small and slow, with no cost for me and my investors (50% on the profit or $1M a year business cost is not possible) ?

G
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Old Mar 9, 2012, 6:50pm   #20
 
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Re: how to set-up a tiny fund

You have to admit it's a bit shady doing this under a different name and talking about ex colleauges.
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Old Mar 9, 2012, 8:13pm   #21
 
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Re: how to set-up a tiny fund

what do you trade if you don't trade through broker ? dark pool ? vegetables stand on the corner ? you are a bit too mysterious
and you don't look like you are serious (to me)

why you can't trade their money under your account ? why do you need their funds ? don't they trust you ?
you just created something in your imagination and would like to see how this, or whether this can be accomodated in reality, thats ok

But in reality, in such weird case as you showed I would delay opening a company as long as possible would give tham access somehow to see the balance and thats it

raising funds is reasonable when someone has a perfect idea and can't do his job with the kind of money he has or when he wants to unresponsibly risk other peoples money for (only potentially) bigger profits or for a thrill of handling it
To run a fund or "own a trading firm" its impressing in itself, attracts money itself and because of this the idea is extremely attractive I had a chance to observe the psychology of this
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Old Mar 11, 2012, 7:00pm   #22
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Re: how to set-up a tiny fund

gayaku started this thread The only reason why I want to raise money from other people is because I can't put much myself more cash on my system as I don't have more cash left, otherwise I would keep it all for myself. I have a few strategies coming live soon which could allow me to trade much bigger size.

Keeping all the money on my account, even my friends' money, would be doable for small amounts, like 5K-10K, but I don't think it would work for 50K-100K. Nowadays, whenever you do a bank transfer over a few Ks, you get a phone call from your bank, which is fine.
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Old Mar 11, 2012, 11:42pm   #23
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Re: how to set-up a tiny fund

Perhaps you should give your fund a legal frame to begin with. Download an IN01 form from companieshouse.gov.uk and incorporate a limited company. If you do it yourself it will cost only about £30. Keep major share in the company yourself to always protect your control of it. Do the company's accounts yourself using GNUCash software. Sooner or later you will need to re-classify the company as an investment company, do your research or consult a solicitor. Also, prepare to establish an offshore investment vehicle asap, your fund will need to protect its financial gains. Once this is ready, move the company's activities into the offshore vehicle. By this time I am sure you will know yourself what to do next...

Good luck. I hope to see you getting there.
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Old Mar 12, 2012, 10:44am   #24
 
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Re: how to set-up a tiny fund

Lol
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