Question
Printed From: Advisorheads
Category: Introductions
Forum Name: Greenhorn Introductions
Forum Description: MAKE YOUR FIRST POST HERE!
URL: http://www.advisorheads.com/forum_posts.asp?TID=18264
Printed Date: Mar/27/2026 at 12:00am
Software Version: Web Wiz Forums 12.03 - http://www.webwizforums.com
Topic: Question
Posted By: simatra
Subject: Question
Date Posted: Apr/19/2021 at 2:00am
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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. |
Replies:
Posted By: Guests
Date Posted: Apr/19/2021 at 6:28am
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. |
simatra wrote:Posted By: PEACH_cm
Date Posted: Apr/19/2021 at 6:32am
| 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. |
Posted By: Wet_Blanket
Date Posted: Apr/19/2021 at 8:34am
------------- The true 🤡 was the Biden voter all along. |
Posted By: advisorman
Date Posted: Apr/19/2021 at 12:56pm
Cold!  ------------- King of sarcasm and speling |
Posted By: simatra
Date Posted: Apr/19/2021 at 6:05pm
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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. |
Posted By: Macduff
Date Posted: Apr/19/2021 at 6:43pm
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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 |
Posted By: memphis
Date Posted: Apr/19/2021 at 9:35pm
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.
. |
Posted By: Sportsfreak
Date Posted: Apr/19/2021 at 10:41pm
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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 |
Posted By: cali123
Date Posted: Apr/20/2021 at 8:38am
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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. ------------- It's just something about your face. I wanna punch you right in the suck hole! POW! |
Posted By: Chips
Date Posted: Apr/20/2021 at 11:00am
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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! |
Posted By: RipRock
Date Posted: Apr/21/2021 at 10:31am
Who is going to route your trades? What Prime broker will you use?
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Posted By: Chief
Date Posted: Apr/21/2021 at 11:24am
This exactly! ------------- "You like winning don't you?" "Saves you from having to say the word please." Good point Chief. Iceco1d 10/30/12 |
Posted By: Guests
Date Posted: Apr/21/2021 at 12:08pm
I just wanted to make sure you didn't think this wasn't appreciated.  |