Technically, you do not have to be registered as a CTA if you are not actively informing people that you are accepting money to manage and if you have fifteen or fewer clients. However, how much credibility will you have if you do not register as a CTA?

The first step is to contact the National Futures Association and request the registration packet. If you choose to be registered as a sole proprietor, the fee, as of early 2004, is $100 per year. If you are going to actively manage money, you will have to be an NFA member and pay a fee of $500 as a sole proprietor. The registration process will take approximately three weeks if you are already registered as a floor broker or in some other registered capacity. People not currently in the business will of course have to successfully pass the Series III examination.

Registering as a corporation, of whatever type, takes longer and is more involved. The same $100 fee applies, but the annual fee for a corporation is $1000. Generally speaking, each principal of the company must submit the proper forms along with fingerprint cards, which cost $70 each. The processing time can considerably longer because the FBI will run a fingerprint check.




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