Investing is the best route to financial security, but there are a lot of risks involved, which is why people often turn to investment firms to manage their money for them. An investment firm will make trading decisions on behalf of the client, using their expert knowledge, so the risk is reduced. The investment firm will then take a percentage of the profits in exchange for this service. 

If you are an experienced investor and you understand the markets well, you could consider starting your own investment firm. As long as you get it right, it can be a very lucrative business opportunity. However, when you are asking people to trust you with their money, they are naturally going to be cautious, so you need to make sure that your business is set up in the right way. If you want to start your own investment firm, here are a few tips to help you make it a success. 

Improve Your Own Investments 

Before you can start a business and handle other people’s money, you need to improve your own investments and learn how to make sensible financial decisions. Unless you add more investments to your own portfolio and start to make a profit, potential clients will not trust in your ability to manage their money for them. The more investment experience you have, the easier it will be to get your new business off the ground, so it may be best to hold off for a few years before you start your investment firm. 


If you are going to start an investment firm, you need to be licensed before you can begin trading. Gaining a Certified Financial Planner designation will help to boost your credibility and show clients that you have the knowledge necessary to make sensible decisions with their money. Any business that engages in financial trading of any kind also needs to register and get an LEI number. You may be wondering, what is an LEI? An LEI, or Legal Entity Identifier, is a unique code that identifies you as a business that is eligible to make financial trades on behalf of a client. You do not need an LEI to trade as an individual, but you do need one to legally trade as an investment firm. 

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Once you have all of the necessary licenses in place, you need to start looking for your first clients. If you have a background working in the financial industry, you should leverage your contacts and do some networking to find your first clients. If you serve them well and make good investment decisions for them, word of mouth should help you to grow your business. Establishing a professional relationship with an attorney may also help because they can point new clients in your direction. There are also some great online platforms, like LinkedIn, where you can find working professionals that need the services of an investment firm. 

If you follow these basic steps, you should be able to set up an investment firm and get your first clients. Now you just need to make sure that you are making sensible investment decisions, and your business should start to grow.