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; Hello, I trade my own money with systematic strategies. I'd like now to also trade money from "customers", mainly friends/family/ex-colleagues.At ...

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Old Mar 7, 2012, 6:36pm   #1
Joined Mar 2012
how to set-up a tiny fund

Hello,

I trade my own money with systematic strategies. I'd like now to also trade money from "customers", mainly friends/family/ex-colleagues.At the beginning, I plan to raise a small amount of money, less than 200K euros, probably even only 50K at the very beginning.

What is the best way to trade other's people money for such a small amount ? I can not use "managed accounts", and don't want to pay 10K of fees given the size of my account. I live in the UK. Does anybody has experience with this ?

What are the startup costs ? how much tax shall I and my customers pay on the profit ? What structure/company type is most suited to this ? Are there some tax-efficient and legal options ?

thanks in advance
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Old Mar 7, 2012, 7:45pm   #2
 
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Re: how to set-up a tiny fund

Just scam them. Isn't that what everyone does around here?

I know who you are
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Old Mar 7, 2012, 7:49pm   #3
Joined Oct 2006
Re: how to set-up a tiny fund

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Originally Posted by Masquerade View Post
Just scam them. Isn't that what everyone does around here?

Normally yeah, but scam or not these things always end in tears.
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Old Mar 7, 2012, 7:53pm   #4
Joined Mar 2012
Re: how to set-up a tiny fund

gayaku started this thread The goal is not to scam anybody, but to find the most efficient way (cost, ease of use, time to set-up, tax...) to start a tiny financial company to trade others people money.
It will be hard to raise money if I don't have an official company.

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Originally Posted by pboyles View Post
Normally yeah, but scam or not these things always end in tears.
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Old Mar 7, 2012, 8:11pm   #5
Joined Oct 2006
Re: how to set-up a tiny fund

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Originally Posted by gayaku View Post
The goal is not to scam anybody, but to find the most efficient way (cost, ease of use, time to set-up, tax...) to start a tiny financial company to trade others people money.
It will be hard to raise money if I don't have an official company.
My point was that even if you don't scam them it will still all end in tears.
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Old Mar 8, 2012, 10:29am   #6
Joined Mar 2012
Re: how to set-up a tiny fund

gayaku started this thread does somebody has some advice about setting up a firm to trade others people money ?
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Old Mar 8, 2012, 7:55pm   #7
Joined Jul 2010
Re: how to set-up a tiny fund

Start with an interactive brokers friends and family account. You trade in one account and allocate a % to each account. No fees or registeration with regulators required. You can get up to 15 accounts under the umbrella account.
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Old Mar 8, 2012, 8:09pm   #8
 
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Re: how to set-up a tiny fund

if you have to ask then dont do it

its not for beginners
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