Legal Question in Securities Law in California

options trading for others

I find myself to be a successful options trader. I day trade for myself and some brokerage accounts of family and friends.

I make a profit 90% of the time.

I have been doing this for about 8 months now.

By word of mouth, some folks are now asking for my services.

with the brokerage company, owner of account is asked to sign a Limited Trading Authority to allow me to trade their account. I can trade the account. I cannot withdraw nor nor transfer funds.

I trade IRAs and regular accounts.

My question: For me to openly trade for other people who seek my services, what license do I require? I do not work for any brokerage entity. I work for myself.

I plan to charge 15% of profit plus a fixed $75 monthly management fee.

Your help putting me in the right direction will be appreciated.


Asked on 7/05/05, 9:17 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: options trading for others

It sure sounds to me as though you are proposing activities for which a license is required. You should check with the National Association of Securities Dealers.

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Answered on 7/11/05, 5:07 pm


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