Not declaring yourself a professional when you really are

Discussion in 'Trading' started by ChrisMMM, Aug 21, 2008.

  1. I'm jewish, and yes the saying is true, I'm cheap.

    For market data fees.. What happens if I'm really a professional status, and declare myself as non professional?
  2. jtnet


    it means you are missing out of money$ deductions is my understanding, writing off your office, equipment, food, whatever
  3. i heard they gov brings out the whips and chains when it comes to people who don't declare non-professional status

    better watch your ass :D
  4. C99


    Why do jews have such big noses??? Because air is free!!

    Jew jokes aside, I've personally made the following substitution in my mind for data vendors:
    Professional= non-personal use, non-pro = personal use.

    So a broker using data to advise clients, yes, pay up. Prop trader required to have a S7, pro fees are a rip off.

    I fall into the second category. I also subscribe to the same exchanges from up to three different data vendors. I'd actually be happy and willing to pay pro fees once per exchange, but each data vendor requires you to pay. So I've taken the stance that the data is for my personal non-professional use. My firm makes me pay pro fees for exchanges through my trading platform, I do not pay pro for the ones I sign up for on my own.

    My opinion does not agree w/ the exchange agreements and standard definition of pro, so as usual this advice is worth what you paid for it.
  5. any more comments?
  6. den999


    It is probably something you can get away with. I know people who do. If you open your account under the name of a company there is no way out. That is probably who the exchanges are more concerned about, corporations rather than individuals.

    But what would happen if you filed your taxes as a pro trader and then used a non-pro subscription. Does the IRS communicate with the SEC about pro/non-pro status? Doubt it.

    It's the kind of thing you do and if you are caught say, whoops, I thought I was non-pro. I'm sorry I will do pro now.
  7. Worse case Uncle Sam decides you are commingling
    personal and business income and expense aka fraud.
    Can you say Dennis Kozlowski? :eek:

  8. its a major offense.

    a felony if your are convicted.
  9. Yes, Not sure if you seen the episode of simpsons where SEC swat teams comes in. But its based on a true story actually. Its what happens when you declare as non-pro and are actually trading from home.
  10. Professional implies that one makes money doing something. So that disqualifies 3/4 of the traders here.:D :D :D :D
    #10     Sep 1, 2008