Is it okay for me to sell trading systems if I am just normal everyday person? Should I have a series 7 license or something? Just wondering, I love trading, but don’t want to get into any kind of legal trouble. Just asking.
Thanks, Mark
You don’t manage any investors capital at C2, so you don’t need any certification. Legally you’re covered under First Amendment in the states, because you’re publishing only your opinion and you’re free to do it in US without any licenses. (smile)
Eu
P.S. Simply, publishing your “opinion” at C2 is legal in US.
yep. I just summarize first question of the FAQ. Simple answer is - publishing of your opinion at C2 is legal in the states. Lawyers will add “with certain restrictions”. It’s still be legal by comparison with no-name pop-up/down sites with attempts for managed accounts from nowhere. (smile)
Eu
Mark - Just be careful about the advice you give. It has to be generic. If it is specific to one person, you are no longer just a publisher. This is assuming you are in US - I am talking about US rules.
So, if someone says “I have $15K, how many contracts should I trade?” you cannot give them a personalized answer. You could give a generic answer that you would give to everyone.
A good general rule is: the less you know about your subscriber’s situation (ie, if they have real or demo acct, how much money they have to trade your system, etc) the better.
I’m sure the NFA, SEC and CFTC are all watching this site (and others like it), so it is good to be careful.
That is at least how I understand it. If someone thinks I have it wrong, please chime in.
Kevin
I believe you are correct, Kevin
The CFTC/etc. tried to shut down the timing/adivsory service concept in the past, wanting them to register. However, “publishing” your trading ideas to the public was held up as OK, as long as you don’t hold yourself out to be a CTA/RIA.
As long as you publish your trading thoughts for all subscribers, that is OK. When you start giving personalized advice “gee, as you are nearing retirement, you should consider XYZ.” Or “for your account size, I suggest using mini contracts instead of fullsized.” Or “since you are in the midwest and should know more about agricultural products, you should consider…” Or "based on your bad experiences, I think you should use broker X instead of broker Y…"
In other words, NO PERSONALIZED advice whatsoever. You are like a newspaper. People buy it, and make their own decisions.
It is probably OK: to explain how your system works or your own philosophy of trading or a query why use limit orders or prefer forex, but your response should be what ANYONE who asks would hear. Just remember, you are a publisher only.
Some vendors here, have crossed the line when responding. It is a great way to get into deep trouble.
Thank you for reminding Index.
Mark, you have to consider that between your subscribers might be schizophrenics with a lot of alter ego personalities and conspiracy theory in their mind. As you understand any your word can be plaid against you with disregarding of your bets attempt by the kind of people. So you have to add to your consideration not only legal matter, but publicity as well. You might not like it (smile), because there is some amount of psychopaths in around trading world.
Eu
Mark: "trading world" is kind of therapy for the "mentally challenged" and any help you can provide will be greatly appreciated!
Just so long as these hell-bent individuals DO NOT actually place trades;)
Gilbert
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