QUESTION: is it legal for an individual trader (average Joe trader) to take cash from a credit card cash advance or take cash from a personal loan and trade futures with it (that cash from the credit card advance or personal loan)?...serious question...thanks..I obviously know it is not the best wisdom and judgement to do this but I was just wondering if there is an NFA or IRS rule or law against this?
Personal bankruptcy laws might apply. Seriously though... when you get the cash make sure you ask for the unmarked bills.
I never researched the legalities of it but I'd think, what you spend your cash advance money on is your business. I've known a few traders start this way. Some ended up doing well but the majority ended up blowing up CajunSniper / Puretick.com Administrator-Trader
I used a coffee filter to trade today, and it worked. I just need to write the ELD to synchronize my Cuisinart with my TWS, and I can sleep another 15 minutes. el surdo
I did it a plenty and have a box full of statements to prove it, back in year 2000 tho. I don't recall any application asks where the cash came from?
Yes it is legal as long as you pay it back. Not only is it legal, but it is encouraged by the credit card company that you take out money and then repay them back. They could care less what you do with the money. You can spend it on Crack Cocaine or hire a hit man to murder your ex-wife if you want to spend it that way. They don't care what you do with the money as long as you pay it back.
If you are a poor trader .... just take out your 2 % creditcard cash advance, stick it in your IB at 4.8%, don't touch it, but let it propell you into the above $25k league and you can daytrade stocks with your maybe $10k account. Nothing illegal about it, and IB's interest will cover it all ....
There is no such thing as a 2% cash advance. They charge daily interest with no grace period to pay it off. They trick you and tell you that it is 2%, but it really isn't. They also charge cash advance fee's. $200.00 for every 5K you take out.
That's correct.....maybe 2% interest per day! Otherwise people would be maxing out their cash advance limits and putting it into 5-6% cd's for free money.