Brokers for Under 21?

i tried opening an account to trade forex on interactive brokers. capitalization was not the problem. the problem however, was that i am not 21 years old (i'm in college though). Oanda never gave me problems with age. Is there a way i around this issue?

you dont have a brother, sister, mother, father, niece, nephew, BFF that can open the account for you?

Since money is no object, open a corp and trade thru that.

i thought about using a family member although i wasn't sure how income would be taxed. i guess opening a business entity does make sense. moreso, everyone here should be a sole proprietor, right? guess i'll look into that. thanks.

Incorporation has many advantages for traders who want to grow their
wealth by reinvesting profits and deducting trading expenses with a
firm conviction that there is tax law standing behind a corporation
that is not available to someone trying to trade as a “trader in
securities”. For some traders, this is the perfect tax-efficient way
to use a combination of a corporation and an LLC or Limited
Partnership to both receive money to live on while maximizing the
amount of deductions including “perks” that the closely held
corporation can maintain.

The C corporation in this combined entity structure operates as the
management company, its business purpose is to manage the trading
business; paying the bills, entering into agreements for itself and
the LLC, and making all of the trades through the LLC, which acts as
the trading company and owner of the securities traded by the
corporation. You and your family members hold the C Corporation’s
stock; the LLC is a partnership that includes you, your family members
and the C Corporation. Generally the corporation will act as the LLC
manager, or the Limited Partnership General Partner.

In this arrangement, most of the expenses are paid through the C
Corporation, while the LLC is used strictly for holding the brokerage
account. Because the C corporation manages the LLC’s trading activity,
the only expenses incurred by the LLC are commissions, margin and
management expenses.

You and your family, as LLC members, may take distributions from the
LLC instead of salary, and thus avoid payroll taxes. Because an LLC is
a flow-through entity, you’ll only pay income taxes on the profit
generated by the LLC.

Here’s another savings: because the C corporation manages your trading
and deducts all trading expenses, including the medical expenses for
the corporate officers from its management income, before taxes are
calculated for the corporation these deductions are netted out. At
that point, the corporation’s profit will be taxed at the lower
corporate rate, currently 15 % for the first $50,000 in income.

If you elect to leave retained earnings in the corporation there is a
dilemma. How to get the money out. You have two choices, payroll on
which income tax and payroll tax would be owed. The other would be
through issuing a dividend.

The dividend recipients would be taxed on the dividend amount that
they received. Dividends have a cap of 15% federal income tax with no
payroll tax on them at this time, and therefore can be an inexpensive
way for many traders to get their money our of the corporation.

Of course, you’ll still enjoy the full benefits of a C corporation,
including personal asset protection, fully deductible fringe benefits,
and clear corporate tax laws.

Is a combined C corporation/LLC entity right for you? It may be if you
want to use a legal entity for trading, take money out of your
business without paying payroll taxes, and make fewer than 200 trades
per year. Consult our experienced Traders Accounting tax professionals
to see which entity structures are best for your business.