I assume you're talking about taxes. I was speaking to my accountant about this and basically the IRS would never know how much you made or lost because Alldaytraders is not a US firm so they do not report to the IRS. I'm not saying I won't pay taxes, but the IRS would never really have any way of knowing what I did with them.
Go to a legitimate offshore bank if you are at all serious. Jamaica is not renowned as a tax haven. Luxembourg or The Channel Islands are a good start.
Well, Considering the funds are held at Bank of America here in the States, it would be a no-brainer for the IRS to put a lock on the account until Alliance gave up their customer list, or to just simply look at the deposits and withdrawals themselves. Do you really want to take the chance, especially if Alliance gets successful and its worthwhile for the IRS to seize funds? Michael B.
First, I never said I personally wasn't going to claim anything. I will claim and gains or losses. All I said was, the IRS wouldn't know and it is true they would not. I have spoke to my friend who is an accountant for over 20 years about this very topic. I hope you were kidding about "the IRS to put a lock on the account until Alliance gave up their customer list" and "the IRS to seize funds". If you weren't, I think you're watching too many movies. It would not be a "no-brainer", because the IRS would have no right to seize the foreign brokers funds based off whether individual clients of that firm did or did not pay their taxes on trades made through that firm. The fact is a foreign brokerage has NO obligation to report anything about any of their clients to any country but their own, regardless of where their bank account is held. This is a fact, the foreign broker does not have to report anything to the US gov't. Just like when a foreigner, lets say for example a British person, opens an account in the US. The US brokerage doesn't send anything to England about the persons taxes. It is the individuals responsibility to report to their government and pay taxes. With that being said, if the individual lies on their taxes and their gov't finds out, obviously they would be in a heap of trouble including fines and in extreme cases even jail time. That is all on the individual and has no bearing what-so-ever on the foreign brokerage who would not report anything about any of their clients activities to any gov't but their own.
Tell that to the Visa corporation, who were forced to reveal their client list of offshore account card holders to the IRS, or else be a party to the action. I am not kidding. It's just that people think if its not reported to the IRS then there is nothing to keep them honest. This is a prevalent mentality, and to me it's just not worth it. Taxes are very low here in America, and you can still be profitable after paying them. I have always had the attitude, if you give them a little they will stay off your back (I file my taxes quarterly). Michael B.
...both www.alldaytraders.com and www.alliancetrader.com were both RECENTLY registered [only a few months] web domains and www.alliancetrader.com expires in one year. That's kind of scary...isn't it?
If I'm to open an account with Alliance I need to know who insures individual client accounts at Jamaican brokerage firms. Is it a government agency or a well established insurance company, and then I'll contact the insurers to verify and get the details. Alliance is connected with Credite Suisse First Boston, and they are major Wall Street market makers, and I beleive they own other retail brokerage firms. More about Alliance can probably be got online at the Securities Commission of Jamaica and The Jamaica Stock Exchange.
alliance and alldaytrader are the same people how do you know the domains expire in one year? Is that normal? don't people have to pay a yearly price for their domain??