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Troutman, Defender of Sticks wrote:
> > [mailto:owner-realtraders@xxxxxxxxxxxxxx]On Behalf Of Tin Mervin Yeung
>
> > How to become a CTA? I think that it requires series 3 and 2
> > years of registration. Please let me know if I am wrong.
>
> 1. Pass the Series 3.
> 2. File for registration with CFTC/NFA, and pay them $500.
> 3. Advertise.
>
> Sticks
Mr. Sticks you are correct in your description of How to Become a CTA. There are two other ways to
do the same thing also :
1. Apply for a publishing CTA, which means no Series 3 test and no Series 3 license required. You
may sell advice but you may not collect commissions or participate in a percentage of profits. Also
it is against the law for a NFA member to do business with you.
2. Apply same as above $80.00 in cost for the CTA. Then file yourself as a principle of your own
business, that is not working under anyone's supervision. This fee is another $100.00 for the
principles licenses and registration. Still all of this can be done without ANY, ANY qualifications
whatsoever. Except the age and criminal background stuff that usually applies to matters like this.
So a couple of forms and a coupler of fingerprint cards and $180.00. You too can become famous like
me, and collect fees from clients for your trading advice. NOTE: A CTA with a series 3 can debit
the clients account for fees and commissions. A CTA like I have just described can only collect the
fees directly from the clients and can not collect or share in the commissions. Remember what I said
earlier that a member of the NFA can not do business with a non member. This type of CTA is
registered with the NFA and the CFTC, but not a member of the NFA. That requires a Series 3. I like
this arrangement because I can never be accused of churning an account, I make money only if the
clients make money. I am not under the regulatory authority of the NFA because Ii would have to be a
member of the NFA to do so. However I am registered with the NFA. So there you have it quite simple!
> --
> Troutman, Defender of Sticks (aka) Jonathan Matte, President
> troutman@xxxxxxxxxxxx Defender Capital Management, Inc.
> Introducing Broker
> http://www.teleport.com/~troutman
> Reviews, opinions, noise about futures trading, books, systems, services
--
TC
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