Why Hedge Funds are the logical steps for brokers

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As a broker with experience and with a license, it basically means you can work in a company and you are licensed to use other people's money for speculating in the public traded markets.

A broker with a realistic plan could form his own Hedge Fund in order to gain a higher benefit of the markets. It has its positive side as well as its negative.

To start a Hedge Fund it requires at least 50.000€ (yes Euro as the dollar is not worth anything now at days), for staff, office, equipment, software and setting up the Hedge Fund itself as well doing some advertisement.
The license itself has to be acquired from someone knowing what they are doing, a good law office firm or with help from a bank.

The downside of setting up a Hedge Fund is that you will be held in charge for using the money. The investors would demand that they know how you invest the money and how you plan the risks. When starting a Hedge Fund you are also no longer dependent of a salary plus the small profit for trading stocks in advance, but you are now dependent fully of how you manage the money, and that is of course if you can get people to invest in your Hedge Fund.