New Company

[Ashley Henry]

Hi,

I will try and keep this question a simple as possible.

I am looking to set up my own company, where I will be spread betting using clients money, now is this legal, if so is there anything I need to do, and does this have a correct title;

i.e what would I be known as, I know I would not be called a stock broker.

Will I need to register with the F.S.A. etcetera?

I am hoping someone can help me.

Thanks

Ashley Henry

 

[anley]

Can a company open a spread bet account? I don't know, but I'd put money on the answer being no, just for tax reasons because then it's personal versus corporate tax. See my point?

But assume you can. Yes, you will have to be registered but perhaps not if the client money is part of the shareholding. So if I give you £10,000 that's one thing but if I buy £10,000 of the company;s shares then it's a lot different and you probably won't have to be registered.

But there are lots of people managing money that aren't registered, they're doing it quietly. Often though it all blows up because they lose much of it and the investors rightly start to get pretty pissed off and may grass the boss up out of spite.

All in all, unless you've got an excellent personal track record of at least 3 years if not more there's a good chance you won't be able to deliver which means trouble will be awaiting you in the future.......

 

[Ashley Henry]

Thanks

Yes so you would give me your money and I would use that money to spread bet whilst giving you back an agreed figure. But you would be paying the money to my company which I would then use my personal spread betting account to place the bets.

You understand?

Investor(Client) -> My Company > My personal spread betting account > Place bets > Give client back the agreed figure.

So effectively I am acting as a stock broker/investor but without the investing, does that make sense?

I also wanted to know what that would be as a title?

 

[anley]

Say people give you £100,000 which they pay into your company.

You then withdraw it. That's income isn't it?

You then lose it.

Tax has to be paid on the £100k that you took out of the company I would think. But gambling losses cannot be offset.

Result - You're well out of pocket.

But say you make £100,000. Again you took £100k out, tax has to be paid. Then you paid in £200k so the company made a good profit, more tax to pay. Then you've got to pay me money, but I want it tax-free.

Ash, it all looks extremely complex to me.

 

[anley]

You're better off getting them to open an account and then using their login information to trade. Then get them to pay you % of the profits.

so what if they stiff you and refuse to pay? Simple, write it off and stop trading for them. If you're making them cash they're cutting off their nose to spite etc.

 

[Ashley Henry]

yeh thats probably better, the closest thing I can compare my idea to is somebody paying a poker player to play on behalf of them...

 

[bluap84]

if your asking people on forum, i dont think id give you my money?

 

[Ashley Henry]

If you can read you will notice that i have not asked anybody for anything just their advice, so please read before jumping to a false conclusion....idiot!!

 

[scose-no-doubt]

no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no

to everything the thread

all illegal or nonsense I'm afraid.

 

[DashRiprock]

i dont think companies can do spreadbetting. but if you want to try normal trading like this, could you get someone to set up their own company (own 100% of the equity), appoint you as director and say pay yuou in shares / divs?

 

[bluap84]

:smart:

If you can read you will notice that i have not asked anybody for anything just their advice, so please read before jumping to a false conclusion....idiot!!

no way i meant it like that, i was just saying if you have come across a forum and your asking for advice on running a company. Surely you might be better off speaking to a business manager or financial advisor? you cant really say your business plan / idea is similar to playing poker on someone's behalf. ? that sounds scary...

just my opinion

how well have you done with spread betting recently?

this isnt you is it Ashley? http://ashleyhenry.co.uk

 

[direkt]

Ha ha, i like the fact that you have had an idea. Ideas are good, and you're doing the right thing by exploring it, and by asking questions. I think your biggest problem may be to convince people to invest. However, I'm basing that on the little i know about you, for all i know you may be a spreadbetting guru. Do you think spreadbetting will make you more than say CFD's?

 

[Ashley Henry]

:smart:

no way i meant it like that, i was just saying if you have come across a forum and your asking for advice on running a company. Surely you might be better off speaking to a business manager or financial advisor? you cant really say your business plan / idea is similar to playing poker on someone's behalf. ? that sounds scary...

just my opinion

how well have you done with spread betting recently?

this isnt you is it Ashley? http://ashleyhenry.co.uk

nope that website is not me....and doing ok at spreadbetting, well in profit atleast.

 

[pboyles]

no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no

to everything the thread

all illegal or nonsense I'm afraid.

Why don't you go the whole way and claim the dole while you are at it? Maybe disability as well. If you move to Dundalk you can claim it in the Republic of Irealnd and Northern Ireland at the same time (at least that's what the poor oppressed used to do).