Whats the easiest way to be able to take on client funds to trade legally in the UK or US?

(Last Updated On: October 31, 2011)

Whats the easiest way to be able to take on client funds to trade legally in the UK or US?

I am an algotrader my strategy is making profit but I want to be able to take on client funds legally??? How can I do this? what is the next logically step to take for people in the position I am in?

Thank you very much for your reply, I have been stuck to speak to anybody with any real expertise in this area, when you say 40k regulatory capital, which regulation are you refering to? I have a few strats which make money using an interactive brokers account, I simply want a legal environment for me to trade and take on client accounts, my intial feelings are that I would need to be registerered by the FSA (as I am based in UK) however this seems to be hard to gain and very expensive to do? could you please offer me some more advice on the best way for me to be able to take on client accounts legaly?

Also from a business point of view, I feel there is a massive opportunitiy to create this ‘bridge’ or ‘next step’ to allow non professional algo traders the path towards taking on a bigger book to trade without as much capital to set up. Maybe a fund which contained all the regulation and allowed algo traders a place to trade and take on their own clients? would you agree this would be a good idea?? or are there other drawbacks I dont know about or limitations?

I look forward to your response,



40k regulatory capital, which regulation are you refering to?

The easiest answer is to seek professional advice. I did.

But if you want to DIY then you could google (and read)
“financial services and markets act 2000 filetype:pdf”

then google
“The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001”

You can compose a list of activities your company will want. Then apply to the FSA for permission to do those activities.The FSA Handbook (www.fsa.gov.uk) provides more rules and the capital requirements. The activities/permissions you want, determine the minimum Capital Requirement of the company – €50k, €125k or €730k.

Of the list of activities in the Order [chapter titles], what activities do you think you need?
I have a good idea but best to leave as an exercise.


Very interesting, I believe Chapter XII Advising on Investments covers what we want to do, which is to trade FX and futures, although from looking at the FSA handbook im not sure what the minimum capital requirement of the company is? whether €50k, €125k or €730k. Could you offer me some advice here?

I notice your company is FSA registered to take on client accounts, so you know exactly how to do this, what would you say the total cost and time of gaining regulation would be roughly? When you said you took advice was this expensive too?

I look forward to your reply,

I have a few questions I would like to ask you about your company, do you have a private email that I could contact you on?



If you are based in the UK and you get clients to invest from the UK and you tell them to open an FX account using a Swiss brokerage firm (Dukascopy) and the trading algorithm is ran from India trading the Swiss account, am I legally allowed to offer people in the UK this service?? because the trading is being done outside the UK?? and the brokerage account is based in Swiss?? Whats the laws on this?? or should I look at creating an LLP in the USA as an offshore company?? im very stuck on the simplist way of trading client FX accounts without breaking laws, I hear there are loopholes such as you dont need to be regulated if you just trade friends and family accounts in the UK using a UK broker its only illegal if you conducting a way of business?? HELP please 🙂



NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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