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> According to the NFA & CFTC you can trade up to a max. of 15 accounts,
> any amount of money, without being registered. This is per their own
> documentation,
The NFA's regulatory guide says:
"A CTA is an individual or organization which, for compensation or
profit, advises others as to the value of or the advisability of
buying or selling futures contracts or commodity options.
"Providing advice indirectly includes exercising trading authority
over a customer's account as well as giving advice through written
publications or other media.
"Registration is required unless:
"(a) You have provided advice to 15 or fewer persons during the last
12 months and do not generally hold yourself out to the public as a
CTA *or*
"(b) you are in one of a number of businesses or professions listed
in the Act or are registered in another capacity and your advice is
solely incidental to your principal business or profession."
I don't know what the "number of businesses listed in the Act" are,
but point (a) would clearly seem to permit family trading without
registration. Unless you have a really big family. :-)
If you're going to trade for several family members, it would be
simplest to pool their funds into a Commodity Pool so you can trade
just one account. But that falls under different regulations. It's
interesting that a CPO (commodity pool operator) can also operate
without registration, if you stay below the 15-person limit, but you
are *also* limited to a $200k maximum and must file a written
statement with the NFA explaining why you are exempt. So if you want
to trade for 12 of your brothers, sisters, parents, aunts, uncles,
and cousins, you'll have to trade 12 different accounts unless you
keep the whole deal under $200k. At least that's how I read it.
> but I know those that have done trading for others (not
> even the total of 15 accounts) and the NFA went after them.
Who says the NFA has to follow their own rules, eh?
Gary
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