Quick question for everyone out there. Does anyone know a good source on the law and legal ramifications with regard to trading other people's money. I am in the United States and the people I would be trading for are also in the US.
Example: Friend has been watching me trade for the last 2 years and want's to give me $10K to trade for him. He fully understands the risk and that it could all be lost.
I would take possession of the money and trade it in my account. In essence it becomes mine, I'm liable for taxes on it etc. I keep track of it and report to him how it is doing from time to time. When he wants money back I make a withdrawl and give it to him. Issuing a 1099, as needed.
Example: Friend has been watching me trade for the last 2 years and want's to give me $10K to trade for him. He fully understands the risk and that it could all be lost.
I would take possession of the money and trade it in my account. In essence it becomes mine, I'm liable for taxes on it etc. I keep track of it and report to him how it is doing from time to time. When he wants money back I make a withdrawl and give it to him. Issuing a 1099, as needed.