claym711 said:khaos288 said:claym711 said:
Start a fund. <$100mm is fairly unregulated and if your performance is anywhere near what it's portrayed you can charge 2/35. You can get a LLC + LP, and PPM for minimal cost, and 3rd party accounting while you're small for <$2k/mo.
Trading services are run by ppl that can't perform, at least not sustainably.
But zero risk to start a trading service to test the waters. Capital investment of zero to grow a base is silly to pass up. Not to mention trading services are hot right now. Winners are bound to emerge. Too early to make judgement on an entire sector of the industry that's so young.
These have been around since before the internet, it's not a new industry. None survive with a big following for long. Similar to hedge funds in that regard. Just seem more prevalent now because of the massive influx of retail traders that came with $0 fee trading and the pandemic.
I agree it's a less risky business approach to harvesting performance fees. Much lower ceiling though.
You said it though. The previous market didn't have the amount of retail investors there are today. I would argue it's an entirely new product based the potential consumer not existing 15 years ago.
I do agree it's a lower ceiling but why not stay there and grow your cash flow before investing tons into the business
