How to trade on behalf of foreign investor?

Discussion in 'Trading' started by SuperVolatility, Nov 11, 2009.

  1. Someone from overseas wants me to invest on their behalf. They don't have an account in the US.

    What is teh best way to approach this? Since it's a family friend I though I'll just comingle the funds with my accounts ... but might be a compliance risk. No?

    Thanks for any suggestions.
  2. .
  3. ask him to open a broker account in US, and authorize you to trade his account. Do not put his money in your account, because you will have tax liability.
  4. Talk to your brokerage firm to be sure there are no issues with bringing in money from overseas. :cool:
  5. Always +1
    This could be a money laundering scheme (with or without the OP's knowledge) and/or there could be several issues assoicated with the transaction in this modern day anti-terrorist political environment.
  7. sosueme


  8. he can open account with IB. there is no problem for foreigners to open brokerage accounts in US. Opening a brokerage account is not as difficult as a banking account, because there is concern for funding terrorists from a banking account, while brokerage account is investing in US which is welcome by the government.