Do you have to be registered to manage forex account

[bryce910]

Hello!

I just had a friend of mine interested in me managing their money and trading it through the Forex market. I am curious if there is some legal type of certification I need to be a money manager for the Forex market or is it not the same legal rules as the Stock Market?


Thanks!

 

[bha1]

Just get your friend to open his own account and give you the login details.

 

[Trade2FI]

I met a same problem.
I want to open a PAMM account with a Forex Broker. but the broker told me that I need to be regulated, otherwise I can't charge a performance fee.
but how can I be regulated ? have no idea about this.

 

[CostaKapo]

You do it under the table until you're no longer a small fish

 

[billyjean]

you dont, actually. as long as your pocket still at low-mid size, any regulation body dont bother. if your friend's trading performance is good, why dont he tried to become autotrader provider, it's a feature from myfxbook. no need to relocated money for managed account. I've an ECN account with armada markets, and plan to become autrade provider,where armada are fully supported. become a trading provider are much more easier than managing on client's account.

 

[highbury fx]

Hello!

I just had a friend of mine interested in me managing their money and trading it through the Forex market. I am curious if there is some legal type of certification I need to be a money manager for the Forex market or is it not the same legal rules as the Stock Market?


Thanks!

A regulated broker cannot knowingly assist an unregulated person to carry on a regulated activity. Receiving payment for financial advice (which trading on another persons account on their behalf for your financial gain is) falls under a regulated activity and most brokers will not pay any unregulated person for this type of business to ensure they themselves are not breaching their obligations to their regulator.

If you introduce clients with no marked up spread and you receive no percentage of their losses then most brokers will pay you for the introduction and actually continue to pay you whilst the client is there. This is the basic IB model.

It gets difficult when you are asking a broker to collect money for you from your clients such as marked up spread, performance fees or share of losses. This is clearly a regulated activity and you will find it very hard to find any broker willing to pay an unregulated person for these type of introductions.

Plenty of people will tell you to do it under the table and to use the log in of your friends/clients but its not the correct solution and its not necessary. If your private financial arrangement with your clients means the broker doesn't need to pay you then you'll actually be able to set PAMM accounts up at a lot of brokers. They just wont pay you for it, not because they don't want to - they do, they want all the business they can get. It's because they are not allowed to.