I have a personal LLC which I use to do my own online forex trading. My question is, what are the legal ramifications or the requirements of taking an aquaintance’s money (roughly 30k) and investing it for him charging him a comission and giving him and myself profits? I’m assuming that it’s not legal to take his money and claim it as mine so I wanna make sure before doing so I take all the appropriate steps to doing so.
Thanks!
I’m not really sure but I will tell you it is a recipie for disaster. Money and Friends really shouldn’t be mixed. If you loose the money you don’t just loose money but a good friend as well.
Play it cautious, if you are a good trader you shouldn’t need someone elses money.
and… Teach him to fish, instead of fishing for him.
I don�t agree so much with Balto, you�re friends can trade for you or you can trade for your friends, if you are using a great software with stop loss an take profit, indicators, EA�s, etc, it could be good, also, If you have that multi account manager with a lot of accounts you can trade for your friends or they can do it for you. So if you have good friends you can try it!
adb trader i did some digging and this is what i came up with to get you started.
Forex Trader-to- Forex Fund Manager: The Path to Success - Management Portal
I googles Forex fund manager if you want to dig some more
hope this helps, john
Ah thanks Johnny… I think 10k to become a fund manager is a bit hefty in price simply to manage 10-30k for a friend of mine. Hmm… I’ll have to call the US Comissions board to see if there is any exemptions I’m able to go for! Thanks for the read though, at some point I’m going to be going that route.
adbtrader, if you are friends with this person then it can be a ‘faith contract’ kind of deal, not needing any legalese to confuse (and tax) both parties. you seem to be the business kind of person so i believe you can draft out a simple indemnity form. if you really want to know the legal for your country (which you should mention btw), just head down to an investment firm, get a hold of the documents you need to sign to get yourself invested in them, and look through it.
if and when you get to a larger scale, like friends friends, it would be good to hire a lawyer and accountant to properly go through with you the legal stuff about it.
on the other hand, i do agree with balto; i personally wont be anybody’s guarantor (for mortgages or w/e) for this reason: it stresses up the relationship if it goes sour, like at the back of your head you know that you’ve lost $xxx of this persons money even though he doesnt mention it. and when you win, well everyone of us is greedy; as traders we know (a little better) how to manage it and just see it as numbers, but your friend may not.
hope this helps mate! (sorry for the moral lecture hahah)
Deuteronomy 23:19-20
“You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest. You may charge a foreigner interest, but you may not charge your brother interest, that the Lord your God may bless you in all that you undertake in the land that you are entering to take possession of it.