FTP FINANCIAL TRADING LLC is a member of the National Futures Association (NFA 0509828) and is a registered introducing broker with the Commodity Futures Trading Commission (CFTC). We provide clients with high touch service helping you navigate through the often misleading waters of alternative investments.

We have relationships with Commodity Trading Advisors (CTAs), Commodity Pool Operators (CPOs), Hedge Funds, and other types of specialized funds. Before choosing an asset manager we perform rigorous due diligence to determine sufficiency.

However, every investor has different goals and needs so not necessarily there is a single ‘best fit’ for everyone.

We have been asset managers ourselves so we know what goes into the creation and development of a sustainable strategy. We attempt to carve out a niche of investments we feel are unique, disruptive, sustainable, and realistic. As Quants ourselves, we have a heavy focus on Quantitative, Systematic driven strategies,including mathematical modeling and Artificial Intelligence. But ultimately, it’s the investor who will make the final decision, and evaluate each opportunity based on its own merits. We believe that results speak for themselves.

Our job involves finding and vetting asset managers and the firms behind them. Top tier investment banks don’t necessarily make the best strategies, nor is a 2 man shop necessarily a red flag.

Our approach

The FTP team has a diverse background including management of a Futures Commissions Merchant (FCM) to running an Introducing Broker (IB) business as well as a Commodity Trading Advisor (CTA). Our ex-CTA was trained in Quantitative Analysis which we use when evaluating a fund. Our approach isn’t 100% based on numbers, however the results will send the strongest message. Also we would evaluate the background of the team, the merits of the strategy itself, assets traded, and length of time in business, and the overall presentation. We have extensive experience in multiple sides of this business which is the value we provide to our clients. Our success is hinged on your success, as your investments grow so do we.

Our Process

First we need to understand your circumstances, not only your balance sheet but we want to know what makes you tick. Do you prefer a sector? Have you had good experiences with certain types of investments, or would like to avoid some types?

About our introductions

We are an introducing broker so we are your first point of contact who can assist with due diligence and evaluation of investments themselves. We can help ask the right questions and get the answers you need to make a decision with the least brain damage.

Types of programs

  • CTA/CPO that trades options based on statistical anomalies
  • Fund that provides bridge loans based on delayed tax credits
  • FX arbitrage hedge fund
  • Model driven European based CTA with Quantitative strategies

What we don’t & won’t do

We are not financial advisors, we will not provide tax advice, or get involved in specific financial planning.
We are an Introducing Broker for Alternative Investments, regulated by the NFA.

Types of investments we don’t service
We are afraid of discretionary strategies – those are strategies where the trader makes the final decision. There are some large notable successful discretionary strategies we just don’t feel comfortable relying on a single individual or a team to perform day in and day out year after year.

Types of strategies we do like
We look for strategies that somehow exploit market anomalies such as arbitrage, or who take advantage of unexploited emerging markets. An example is arbitrage strategies. Another type of strategy we like are strategies that are model driven, based on Quantitative models that are developed in the lab and tested in the field.

Our simple opinion: Inflation is misleading

We have a simple core conclusion that forms our modus operandi; inflation is much higher than the Fed says. Certainly inflation is not 2% – 5% a year it is much more.

Quantitative Easing has inflated all asset classes including food and energy. It’s a simple supply and demand scenario – more money in the system means that the same amount of goods or slightly more each year equals hyperinflation. So earning a few percent on a Certificate of Deposit (COD) or investing in a mutual fund that earns 5% a year isn’t going to keep your assets ahead of the curve. Of course, as you increase the potential yield you also greatly increase risks – and here is the difficult part. We attempt to find strategies with a higher yield but that have well developed risk management protections in place. There is always the risk that the protections won’t work and the investments will suffer – that’s the risk any investor must take in order to achieve higher yield. But it’s out there.

The music group U2 made more money from investing in Facebook’s Pre IPO than they did selling music in their entire life. But at the same time, Bono personally has invested in hundreds or perhaps even more investments that have been a 100% loss. It’s all about finding diamonds in the rough, which is possible if you are trained and have experience.

NOTICE: We only work with Qualified Eligible Persons (QEPs) or the foreign equivalent. We are an institutional introducing broker.

Register here to get your free whitepaper on Alternative Investments.