Help Center Blog Open An Account

Trading futures for the family with LPOA


#1

I apologize for the lengthy post, but before I embark on the journey of family and friends trading, I wanted to know the details of setting up a corporate entity of family and friend where I do not require any licensing.

  1. What is the legal definition of family and friends?
  2. If different members come at different account sizes, am I allowed to allocate according to their account size?
  3. Can customer see the report of their trades?
  4. Am I allowed to trade individual and IRA accounts?
  5. How could I trade for all accounts at the same time?
  6. What should I be asking? :slight_smile: Is there anything I need to know?

#2

Hi @KevinJJ, I appreciate the detail-oriented question you have about managing OPM.

We are not a legal expert in this field, and the only thing we can provide is general guidelines as far as taking an LPAO (Limited Power of Attorney) over other accounts. We highly suggest going to the NFA where they have very friendly staff who will assist you with any questions you may have. As far as we know you are allowed to manage fifteen members of family or friends. A family is an immediate family (spouse, inlaws, nieces, nephews, etc). “friends” is where you have to be particularly careful: this has to be in our opinion someone you have known a long time, not just someone you met in Starbucks or solicited through an online avenue where you present yourself as a money manager. Exemptions do not apply there.

Yes, you can. But, you have to decide on the preallocation method prior to placing the trades because you do not want to show favoritism, and at the same time provide the account with the number of futures contracts that are suitable for the account size. Our back office will help you with the allocation method which will include partial fills as well.

Yes, they can. we will work with each customer individually so they can see the trade allocation on the FCM’s portal.

Yes, you can.

We provide a block allocation account. You can execute for all through one account.

Which FCM should handle this account. This we can decide over the phone or via emails.

Thank you,
Matt Z
Optimus Futures
www.optimusfutres.com


#3

Thanks Matt! This is the information I need.

One thing you touched upon and I did not think of are the partial fills. How do they get allocated?


#4

To the best of my knowledge, this cold based on account size or randomly let the FCM allocate it. When you set up the account, I will ask the compliance department of the FCM.

Thanks,
Matt Z
Optimus Futures
www.optimusfutures.com