Setting up Investment Fund

[perfectagent008]

Hi everyone, I am looking to start an investment fund with my business partner. I am based out of the US and he is in the UK, we will trade only forex.

I know in the US if there are less than 15 investors then I will be fine with no license because it is considered friends and family.

Some people will invest from the UK and others from the US. I was thinking if I open a money manager account with a broker, then investors could open an account under their name, make a deposit and I can trade everything with a master account. However, this may be tough with investors from different countries (UK brokers don't accept US clients and so forth).

Would it be best to establish a limited liability partnership in a country that is a tax haven like BVI, Cayman Islands, etc. Then have investors send money to the LLP and then the LLP can trade the money from one account?

Would greatly appreciate some advice/direction. Thanks!

 

[Patricia12]

I think, open a money manager account with a broker will be right choice because you and your partner both can open an account under their name and start trading.

 

[4xma]

If you are not license, you may have a lot of trouble opening managed accounts with US brokers and you will have even more trouble if you accept money directly from your clients. You must be very careful to do Forex managed accounts in the US or you need to get license from NFA.

 

[jamesalfie84]

I think you can set up your own investment fund with your partner. Because, Investment clubs usually require no formal education or securities licensing requirements. The worst battles over money occur between family and friends so write up a good partnership agreement showing how often the club meets and especially how investment decisions are made. Also include clauses for income distribution, and exit clauses for those who want out at some point.

Cash Back Forex

Hi everyone, I am looking to start an investment fund with my business partner. I am based out of the US and he is in the UK, we will trade only forex.

I know in the US if there are less than 15 investors then I will be fine with no license because it is considered friends and family.

Some people will invest from the UK and others from the US. I was thinking if I open a money manager account with a broker, then investors could open an account under their name, make a deposit and I can trade everything with a master account. However, this may be tough with investors from different countries (UK brokers don't accept US clients and so forth).

Would it be best to establish a limited liability partnership in a country that is a tax haven like BVI, Cayman Islands, etc. Then have investors send money to the LLP and then the LLP can trade the money from one account?

Would greatly appreciate some advice/direction. Thanks!