Question |
Post Reply |
Author | ||
simatra
Rookie Joined: Apr/19/2021 Status: Offline Points: 3 |
Post Options
Thanks(0)
Posted: Apr/19/2021 at 2:00am |
|
Hello,
I have enjoyed reading all of your posts, I have tried to find the answer to this question but I can't seem to find it anywhere here or online, and forgive me as I am brand new to the finance world, I am just starting to take my SIE prep courses, then next will do my Series 7. My question is this: 1.) Is there anything that stops me from opening up my own brokerage or money mgmt firm once I get my licenses? The only reason I am getting my licenses is so that I can invest OPM myself. I'm assuming there's a ton of red tape laws and regulations that require you to work for a brokerage for a long time unnecessarily before going on your own but why can't I just go ahead and start a hedge fund myself if I can get investors to invest in my firm?
Curious what the costs associated with starting my own firm would be as well. |
||
Moraen
Admin Group Resident Sage Joined: Mar/09/2010 Status: Online Points: 30789 |
Post Options
Thanks(0)
|
|
Estimated costs to startup a hedge fund these days is north of $100k. Expect that you will need at least $100MM of investor capital to get started. You can open up an RIA firm and manage money. There are regulations you need to follow. Reach out to Wet Blanket on this forum and he'll straighten you out. |
||
I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis
Fiduciary as Fuck - iMo |
||
PEACH_cm
Senior Member Joined: Jan/16/2013 Status: Offline Points: 7184 |
Post Options
Thanks(0)
|
|
If you are not smart enough to figure this out via google searches then chances are you are not smart enough to run a fund.
|
||
Wet_Blanket
Admin Group Team America (not iMo) Joined: Mar/10/2010 Location: New England Status: Offline Points: 43649 |
Post Options
Thanks(0)
|
|
|
||
The true 🤡 was the Biden voter all along.
|
||
advisorman
Senior Member Joined: Oct/22/2011 Location: Behind you Status: Offline Points: 4246 |
Post Options
Thanks(0)
|
|
Cold! |
||
King of sarcasm and speling
|
||
simatra
Rookie Joined: Apr/19/2021 Status: Offline Points: 3 |
Post Options
Thanks(0)
|
|
My main question was...can I start an investment firm as soon as I get my series 7 and SIE license or do I need to work somewhere first? Is there anything that stops me from just doing it myself is my main question :)....
And what would I call it would it be called a... A private equity firm? A family office? Like I said I'm new just trying to learn forgive me - you'd think Google would populate all kinds of results but to that specific question I haven't found anybody who has broken down exactly what it would be called and if you can do it or not. |
||
Macduff
Senior Member Joined: Oct/27/2013 Location: United States Status: Offline Points: 1140 |
Post Options
Thanks(0)
|
|
Don't take this the wrong way, but there's a ton of resources out there. You've mentioned several different types of businesses, all of which have different methods of investing and legal structures. Past that, they all have very different approaches to making money.
Private equity is different from a broker-dealer, which is different from a family office, which is different from a hedge fund. They each have very different investing styles. In the case of a broker-dealer, they aren't making money off their investments anyway. You need to step back and do a lot more research before you start thinking about opening your own firm. If you haven't done enough research to know the difference between a hedge fund and private equity, I would be wary of trying to bring in outside investors. Past that, you might not even need a S7 or SIE to manage money. Plenty of us do it with a S65, which is for investment advisors. I'm not going to spoonfeed you the difference though. Do some more research and then come back when you have specific questions. (To answer your original question, technically yes, you can open your own firm without working elsewhere first. I wouldn't recommend it and you won't need your 7 to do so though.)
|
||
“I was born for the storm, and a calm does not suit me.”
― Andrew Jackson |
||
memphis
Senior Member Joined: Apr/20/2020 Status: Offline Points: 718 |
Post Options
Thanks(0)
|
|
What do you mean by "investment firm"? I think if you answer that question it will by necessity answer a lot of your other questions.
. |
||
Sportsfreak
Platinum Member Wise Old Perv and CTO of AH Joined: Mar/09/2010 Status: Offline Points: 25704 |
Post Options
Thanks(0)
|
|
Macduff is right. You are getting ahead of yourself. No offense, it sounds like the only thing you know is that investing is interesting to you. But from your questions, you know nothing about the business. And yeah you need to do more research. If i were you, i would be getting a job in the industry, first, then in about 2 years, revisit this idea , which honestly, coming from your vantage point, sounds like a hairbrain scheme that can only get you in trouble with your extremely limited knowledge.
Again, no offense, just trying to help. Give it serious thought.
|
||
If you eat an entire cake without cutting it, then technically, you only had one piece
|
||
cali123
Senior Member Joined: Mar/11/2010 Location: w/ your wife Status: Offline Points: 1398 |
Post Options
Thanks(0)
|
|
You also need to understand what you are getting yourself into.
This job is more sales than you probably realize. I see kids wanting to enter this industry after they have been "successfully" trading their personal account for a year or two. No-one cares. Your job interview will be about how you are planning to bring in new clients. Your training will revolve around sales. If you go out on your own: even if you have this amazing strategy that no one has heard of (unlikely), you will still need to have at least 5 years of audited returns before anyone will give you serious money. Stay at this firm that is sponsoring you for your exam and learn sales before starting your own shop. Edited by cali123 - Apr/20/2021 at 8:41am |
||
It's just something about your face. I wanna punch you right in the suck hole! POW!
|
||
Chips
Senior Member Joined: Jul/08/2019 Location: SF Bay Area Status: Online Points: 694 |
Post Options
Thanks(0)
|
|
This is the first result when you Google “how to start a hedge fund”. Make sure to keep form PF handy as I assume you’ll hit $150m in no time. Go get em! |
||
RipRock
Senior Member Joined: Oct/29/2013 Status: Offline Points: 1807 |
Post Options
Thanks(0)
|
|
Who is going to route your trades? What Prime broker will you use?
|
||
Chief
Gold Member Joined: Mar/12/2010 Status: Offline Points: 16265 |
Post Options
Thanks(0)
|
|
This exactly!
|
||
"You like winning don't you?" "Saves you from having to say the word please."
Good point Chief. Iceco1d 10/30/12 |
||
Moraen
Admin Group Resident Sage Joined: Mar/09/2010 Status: Online Points: 30789 |
Post Options
Thanks(0)
|
|
I just wanted to make sure you didn't think this wasn't appreciated. |
||
I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis
Fiduciary as Fuck - iMo |
||
Post Reply | |
Tweet |
Forum Jump | Forum Permissions You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum |