IB single account for two persons

Discussion in 'Retail Brokers' started by tradebanzai, Jan 25, 2007.

  1. Hi everybody!

    I've got the next question concerning the IB account type. Me and my friend would like to trade US stocks from single account (50/50). Is there any possible way to open such an account and second are there any protection mechanism built in such account so that no one of us could use not his money? (lets say, we have 30000 together and 15000 for trading for each. The one has lost his 15000 and taken mine to trade. is it possible or not?).
    We'd love to open two separate accounts, but both don't have enough money ($25000).
    Thanks
     
  2. ddunbar

    ddunbar Guest

  3. Thanks.
    But I need exactly the opposite: one account and two persons (not one person and several accounts).
    They have something in their account application, it's called Joint account (in Individual section) with %'s for two persons. But I'm not sure if it is what I need.
     
  4. ddunbar

    ddunbar Guest

    Possibly, but that means a gain/loss will be distributed 50/50 (or whatever % you agree on) no matter what. That might but what you are looking for. But say your bud screws up and the account loses x amount. For tax purposes, that allocation will be according to how you set the account up. And once you do that, you can't change it.

    With the friends and family advisor set up - you both can act as advisors - have a master account - and have two client accounts.

    You could be the advisor to your (client) account. And he to his. This way your gains/losses are yours and his gains/losses are his. But the funds will be held in a master account which will give you day trading privileges since it is >$25k. You can allocate trades to which ever account you wish - yours or his.

    At least that how it appears to the best of my knowledge.
     
  5. Why you want to open 1 account anyway?

    Why don't just open two?
     
  6. Cause I'm a daytrader so I need $25000 to open an account, I have only $15000, and my friend has only $15000.
     
  7. Maybe you're right, I didn't think about that. Thanks. Do I need to have any certificate or whatever or to comply to some rules in order to be an advisor?
     
  8. ddunbar

    ddunbar Guest

  9. But with 50/50 set up IB would know that you have only $15000 for trading and I believe it won't let you daytrade anyway.
     
  10. you can't have an account at IB under the FA because every account must meet the $25,000 requirement.
     
    #10     Jan 25, 2007