Scaling an algo-trading business

[A2xTrad]

Hi guys, I'm a trading algorithm developer and trader. I manage my funds + family on with a complete risk management.
I relocated to a 0% capital gain tax country last year.

However I want to scale this to the next step, even if my capital is growing and compounding, it's still relatively small money.

How could I setup this and attract investors? I want to makes things easy, only taking performance fees, 0% flat fee, and like they don't invest their money in my company, I just plug my algorithms to their broker's account and send orders.
But I think it's a little "grey" to do this even if I don't directly manage their money.

What do you think? Anyone did something similar or created a fund here? Would be great to connect with people

 

[aniglo22]

Are you sure it falls under capital gains?
I assume you've moved to the UAE.
To me it seems this would be classified as a commercial business therefore subject to corporate tax.

Anyways you would have to look into your local finance regulation .

But you could look into PAMM (e.g https://www.exclusivemarkets.com/pamm) .
It is kinda sketchy , but doesn't require much capital or compliance .
The right way would be obviously to establish a fund somewhere .

You could also look into a PIF-20 in Panama

 

[aniglo22]

And also you should add much more information to your post .
Such as :
Where are you based ?
How are you going to advertise for investors ?
What assets do you trade ?
etc...

 

[diro]

totally agree with @aniglo22 - OP you need to add more information to make this thread make sense for you and get qualified suggestions.

 

[A2xTrad]

Thank you for your feedback. I was referring to my personal trading for capital gain tax, not business side.
I'm living in Andorra, corporate tax is also very low here.

I'm trading NASDAQ and S&P500 indices, it can be though Futures, ETFs, CFDs etc..
I will look into PAMM, thank you

 

[Milei]

Andorra also allows the creation of private SICAV funds (open-ended funds with variable capital) taxed at 0%. However, there are important restrictions such as a minimum capital of 1.25 mln EUR capital and min 50% participation of Andorran residents, afaik.

 

[A2xTrad]

Yes I'm already aware about that solutions and I think that's the best solution to be totally clean, but the 1.25M entry ticket is quite high for me currently