Don't you have to have a license in USA to manage other peoples trading accounts... i.e. one of the series X tests?
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DislikedOn our website we feature a CD that once listened too will answer both of your questions. It is Tax Secrets for Traders, Forex edition. Many Forex traders trading the same amount you have do form LLC's to trade in, but there is no cookkie cutter approach to this, so without more information from you i would have no idea as to whether or not it made sense for you to form a business to trade in. You can fill out a confidential questionnaire on our web site which will provide us the information which we can use to create a free 40-page report that will be snail mailed to you. This is a very good report as part of it will be personalized to you. Forex trading is the wild west when it comes to taxes, so be sure you know what you are doing. 05/06/07 Jim Crimmins Traders Accounting www.tradersaccounting.comIgnored
DislikedDon't you have to have a license in USA to manage other peoples trading accounts... i.e. one of the series X tests?Ignored
DislikedIn order to trade, you will not need a limited power of attorney, the only time you'll need that is if you are NOT listed as an owner, i.e. the acct is registered soley in the other party's name. For instance, if you open an acct and want to have your broker execute trades at his or her will, they will need to you to sign a power of attorney form.
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Finally, about the licensing requirements. I carry a Series 7, 63, and 65 license and previously held a Series 3. The reason for having a securities license (or commodities license) is when you are soliciting the public to purchase securities (and a host of other reasons, but not to trade!). For instance, when a client calls me and asks to purchase shares of a mutual fund (or a specific stock at a certain time and price), I need to be licensed in order to transact that order. Otherwise I've just broken the law, as well as the firm I work for. But if you are calling a broker to purchase shares of a mutual fund or stock for an acct, let's say a joint acct you hold with your friend, you do not need a securities license. The person on the other end of the phone, however, does.Ignored
DislikedYeah, I tested for the Series 65, but got too lazy to actually register for the license.
As I said in my previous post, once you start charging a fee, or collecting money to manage accounts, this is when licensing becomes an issue. You can probably get away with managing a couple of accounts for money unlicensed, but when you start doing it with dozens of accounts, such that it becomes significant income, you begin to arouse suspicion with the SEC/NASD/CFTC, or whatever other acronyms.Ignored
DislikedIf anybody reading this post knows about how you pay tax on forex profits if you are based in the UK but use a US broker I would appreciate it if you could outline how it works. I am currently working full time and trade part time but aim to leave my job next year and trade full time. I have asked the inland revenue and a couple of accountants and they all say different things! Very confusing.
I have been using UK spread betting companies up until now which has been tax free but as I have become more and more profitable they have become more and more unreliable. I now need to use a 'proper' broker for my main account.
Any info would be appreciated.Ignored
DislikedIf anybody reading this post knows about how you pay tax on forex profits if you are based in the UK but use a US broker I would appreciate it if you could outline how it works. I am currently working full time and trade part time but aim to leave my job next year and trade full time. I have asked the inland revenue and a couple of accountants and they all say different things! Very confusing.
I have been using UK spread betting companies up until now which has been tax free but as I have become more and more profitable they have become more and more unreliable. I now need to use a 'proper' broker for my main account.
Any info would be appreciated.Ignored