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How to Legally Become a Broker without Getting Licensed

To the outsider looking in on the financial industry, you might be forgiven for developing a bit of anger and rage at the fact that it appears to be a very lucrative market that remains closed off to the masses. It’s like the guys who make the big bucks are partisan, with their partisanship granted on rather unfair grounds, like knowing the right people who make the economic laws that give them the very visibly unfair advantages they enjoy.

You might be a much better analyser of the markets for instance and could therefore run something like a CFD trading brokerage 100x better than the average broker out there, but then again you can’t just set up shop like that and legally collect money from people to trade on their behalf! However, there is a way around what can probably be said to be skewed and unfair laws around the regulation of this kind of activity and it involves “borrowing” the model of operating as a broker and applying it to a “market” you effectively create yourself.

Sports betting

In truth there are many other types of betting this can be applied to, but my focus in on sports betting just because this makes for a very simple example to walk through as a case study. The main idea is that something like sports betting doesn’t differ all that much when compared to something like trading CFDs (Contracts for Differences), but you can’t just up and run a CFD trading brokerage operation, whereas there are no legal parameters stopping you from doing that with something like sports betting.

How to do it

So what you’ll be fundamentally doing is getting into full-time online sports betting, which naturally means you won’t be relying on pure luck, but will rather be implementing a sports betting strategy based on statistical principles. It could very well be a dynamic strategy based on how things go, of course.

You’ll then be collecting a pool of funds from other people, like your blog followers, who want in on the action and who are clear on the statistical advantages of betting on sports events using the group funding approach. Now, to legally get around what the financial regulatory bodies in your country could argue remains a breach of securities regulations, the contributing members of your “sports betting team” can contribute whatever amount they’d like indirectly, through the use of Callmart, which is an app to earn money with by the minute when someone connects with you to get in touch.

Since you can set the amount which will be billed to the contributor, who would be calling in to give you their details and input, you can decide on a micro-profit structure to go with, such as perhaps keeping only 10% as your “brokerage fee,” less the small service fees charged by the app developers, of course. You can also decide on how the winnings are distributed (it would have to be a mathematically fair structure) should all the permutations covered actually lead to significant jackpot winnings, but what’s important to remember is that since you would have determined upfront how much you’re going to charge for your brokerage service, via the app, whether the group-betting club wins or not, you still make your profit.

Peter Berry
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