What are the legalities of offering a PAMM account?

[DrPepperJunkie]

I am from US and have been trading with HotForex and they have been working quite well. I have been producing consistent profits for many months and simply do not have a lot of capitol. I have seen horror stories of legal messes for PAMM managers in US. However since HF is way out of country and most investors are not US, would it be valid for me to offer a PAMM account through them?

[Jack Larkin]

If HotForex accepts US residents as clients, you'll probably have to register with the regulators to take on clients... probably (if it's the same as other markets, such as a CTA for futures and equities.)

Of course, this is a question for HotForex, not us.

[4xcess]

I would leery to offer a PAMM account through HotForex, it's one thing that they accept US customers - it's another that you'll then be managing other US customers' funds. One thing you could look into becoming is an "exempt CTA" with a regulated US brokerage, then you can accept US and non-US clients and being an "exempt CTA" wouldn't require you to go through all the work of getting your series 3 and getting registered with the NFA. Just a thought.

[taohai]

it's an interesting question, actually I invested some money in PAMM account, to befrank, the profits there are more stable than my live account.

[mastergunner99]

If you're having a profitable time trading, why rush it? Just trade. Months won't dictate overall success. You need some years under your belt to determine that.