I sold a piece of property a few months ago. The person at the title company said they see more trust properties trading hands than non trust. When the person dies, the account becomes "the estate of"... Was thinking of insurance companies...How they have gone into investments. They have a HUGE back office for the paperwork. Most of the time (insurance back offices) do not know what they are doing!! Also, a huge percentage is in IRAs...I don't know if people would what what you have. Where can I put my 401k after I leave my company?? Not with you...
I don't know about the specifics of 401k and IRA etc., I think it's US-specific for retired people or so. What about using a normal CashAcct (instead or additionally)? I just would like to keep the brokerage as simple as possible (KISS principle).
People can start IRAs and 401k's as teenagers...In cash accounts, people die!! I don't think you're from the states... The Feds keep track of ALL (except crypto) money. Where did you get it...Are you a foreign entity...A cartel? No cash and carry in the US anymore...
Yes, a foreign entity specializing in US stock & options markets only. Here's a comparison of the above said account types 401k, IRA etc.: https://en.wikipedia.org/wiki/Comparison_of_401(k)_and_IRA_accounts Like I said: it's too much work to manage all these different acct types. I rather would prefer to have just 1 account type only, the standard CashAcct, to keep things as simple as possible. I think there is no law against having multiple accounts, so you can have a CashAcct additionally to your 401k or IRA etc. And: the brokerage will accept clients from all around the globe, not just the US, so for the majority a CashAcct is very well suited.
Cool...Maybe have it in the Cayman Islands. Everyone will want to trade with you!! Or...In September 2021, Bankman-Fried and the entire senior staff of FTX moved from Hong Kong to the Bahamas.
Your post indicates that you do not understand the difference between the type of account and the account title. An IRA and a 401(k) are retirement accounts in which a financial institution acts as a trustee or custodian, holding the funds for the beneficiary, i.e., the person who wants to set money aside for retirement. This is a specific form of ownership, or a way of titling the account. An IRA or a 401(k) may be a cash account or a margin account. Most US brokers offer many different ways to title an account. Other examples of account title include partnerships, corporations, limited liability companies, and joint accounts held by two or more people, without forming a legal entity, such as an account held by a married couple, or by two brothers, etc. All of these forms of ownership can have a cash account or a margin account. So what's next? Your new broker-dealer firm will only offer one way to title the account? 'Cause you want to keep everything simple? So the only way to open an account at your firm is as an individual? So I can't have a joint account with my adult son? I can't open an account for the corporation in which I am the majority shareholder and CEO? If you don't offer accounts to business entities, then you are excluding a huge pool of potential customers. The extremely narrow restrictions you are talking about are arbitrary and silly. What is your minimum for funding an account? $25K? If you have that kind of minimum, then you'll get serious, experienced traders. But those kinds of traders will want sophisticated forms of ownership, and they will not be satisfied with just an individual account. If you don't offer retirement accounts and business accounts, those traders will not want to do business with you. If you have a really low account minimum, like, say $3000 or $5000, then you're going to get a lot of low revenue, high maintenance accounts from people who have no f**king idea what they are doing. You'll get calls from people who don't understand the PDT rules, and people who don't understand the difference between equity and index options. Is that the kind of client you want? (BTW: PDT, in this context, does not mean Pacific Daylight Saving Time. It means something else.)
Robinhood (HOOD) has tried for 10 years to do what you're thinking of. I don't know if they ever made a profit!! PS Full Time Employees: 2,300
$0.0 ! B/c it's a CashAcct then the account owner can trade only what is avail in the acct; ie. it's his/her own task to fund it sufficiently for the next trade. And: With CashAcct there is legally no such limitations like the PDT rule and also no such thing like margin calls etc. It will be highly rationalized and automated, ie. mostly only via Web, API, App; ie. everything just online (webmail / email / ticket system), no phone services (except for emergency cases). And: it's intended for international individual traders who are ok with the offered features, not for corporations etc. Then it makes not much difference whether one has just 10,000 clients or 1,000,000 clients as one can simply add more servers...
It would have to be located outside of the US... IRS wants to know when/how/ where you have repatriated your funds... Those who have tried...Dying on the vine. https://www.elitetrader.com/et/link-forums/brokers.89/