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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 115428
Experience:  Attorney experienced in commercial litigation.
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How do I legally invest other people's money in a forex

Customer Question

How do I legally invest other people's money in a forex fund?For example, I can take my friend Jimmy's $2000, double it and make $4000 total. I can then give Jimmy back his original $2000 plus a 15% interest of $300 giving back total of $1300 for Jimmy and I keep the remaining $1700 profit in my pocket.How do I do this legally?Can I just form an LLC, have Jimmy "gift" me the $2000, do the investing and "gift" him back "$2300."
Submitted: 7 months ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 7 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
In order to invest money for others, you would need to be a FOREX licensed broker through the Securities and Exchange Commission if you are located in and are selling services in the US. See: https://www.100forexbrokers.com/how-to-become-a-forex-broker
If you do this in the US without a license, you can be charged with securities fraud. Here are the SEC FOREX registration and licensing regulations: https://www.sec.gov/divisions/marketreg/bdguide.htm
You need to be a licensed securities broker and set up your separate accounts and have your errors and omissions broker insurance in place in order to legally operate in the US.