I would like to start, together with a couple a friends a forex trading activity.
The idea is to have an amateur activity just with our money. But we would like to equally share the risk.
We have seen that is possible to open different individual accounts and than give the power of attorney to one of us that will manage all the money as a �unique master account� (PAMM).
Does the agent (the one of us that will manage all our accounts) need some specific �authorization� or �qualification�?
Thanks in advance
First I’m not legal councel, you cannot and must not use any information I provide you with without doing due diligance, and contacting a qualified lawyer – now that that bit is out of the way
What I was told is there are a few legal things you may want to do but are not strickly required, however preferd. Its likley to be expensive, what you can do is use a few services that are out that would eliminate the legal hassle, however they dont always work correctly. You can also contact your broker and find out what they require, generally speaking a power of attorney is about it.
You are going to want to have a contact stating if I remember the maximum downdraw (or loss) at which point if reached you would exit all trades and give them the remainder back (again, from what I understand!)
If you want to read what I asked/was replied to just look through my past posts. I had a few people who wanted me to invest for them (I told them I wasnt ready but decided to do research anways)
I’ve put my money in managed accounts, and it was a pretty standard limited power of attourney clause over the funds being traded… I would have your broker or a lawyer type something up for you.
Yeah, lol…you can probably get a good IDEA of what will need to happen from a message board, but for a real ANSWER to any question like this, best to just go sit down with a lawyer. You’ll probably have to sit down with one anyways to get all the proper paperwork drawn up.
Someone told me that you may want to do something legally, but it is not strictly required but preferred. It can be expensive, and you can use some services that can eliminate legal troubles, but they don’t always work correctly. You can also contact your broker and understand their requirements. Generally speaking, a power of attorney is about it. However, I still suggest you get a lawyer. I’m not a legal representative, so what I tell you might not be entirely accurate. The firm I usually hire is https://ucmjdefense.com.
[Edited for a Forums Violation]
Some years ago here in the UK I was a member of a SHARECLUB - each member contributed a monthly amount and the guy delegated as our “trader” was the only one allowed to actually do the trades.
I think if I understand your question correctly - this is the sort of thing you want ?
Your bank should be able to help you with what type of account you need and I would start there !
I don’t know what the legalities are in your country - but “Clubs” of various types must be allowed to have bank accounts - I presume ? Then you need to get a broker to accept your Club as a client !
Good luck and do let us know how it goes
[ Edit - formed in teh way I suggest - I don’t think you would need any qualifications - the club rules should make it clear that you are just a group “playing” - but the bank account should also be protected against the “trader” running off with the money ! ]
[ Edit 2 - As we were “investing” rather than trading - we voted on eact transaction at out=r monthly meetings - If you are “trading” - that may require quicker action on a discretionary basis - again the club “Rules” should be very specific about how the decisions are to be made ! ]
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