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.
1 Answer from Attorneys
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.