PropTrader-RIA-Indy Advice Plz
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I am 15 years in the business. Worked at a wire for roughly ten years and a smaller firm prior to that. My interest over the years has been learning how to trade. At the wire I built up a business of fee based discretionary equity accounts applying my trading skills to intermediate and some long term strategies. I am now indy. I have no trading platform which is terrible and my trading costs are high. Still it is far better than being at the wire because I can finally do what I want in my own acccounts with out someone telling me I’m not conforming to what they consider to be the correct weightings or telling me I cant buy this or that stock. Also I can keep my personal accounts at a low cost on-line broker dealer where I do swing and intra day trades… I’ve spent the last ten years getting to a lever of what I would call a decently good trader. It is my hobby and my passion and if I could retire tomarrow I would still trade my own account. Right now my accounts vary but on average they are up 17% for the year and my clients accounts are up 3%.
If I had all my accounts pooled into some sort of investment pool and could do for my clients what I did for me everyone would be up 17%. But I cant trade equites accross all my discretinary accounts. I have no MATES platform anymore. It has to be done one account at a time and it costs me $15 a trade. Right now, I'm spending over a $1000 a month on trading costs. I have been tested this year like no other and I have demonstrated that I am a competent trader. My personal accounts are not large enough to live off of yet though. I'm a small indy with a relatively small book of business. Instead of spending my time marketing and what not I spend all my time focused on learning how to trade and studying that. I need to run my own small fund of sorts but I am absolutely clueless what to do or where to go. Any advice? How would I go about doing this? What is my path to running my own fund?Starting a public mutual fund from scratch? That’s imppossible w/o major$$. Maybe you should start a private fund, like a hedge fund. First decision, on-shore or off? Most private vehicles use an off-shore structure for a whole slew of reasons, some tax some disclosure related. Now you need not only a US lawyer but a bunch of em in the Cayman islands.
A good resource for this is a NYC law firm by the name of Sholtze - Roth. They specialize in setting up private equity vehicles. I guess your legal costs would probably be $500k or so.