Open account with a foreign resident and trade on their behalf

If true that would be one of the great tax shelters of all times. it is not true. you are subject to tax.

 

And from where is it managed, where are you physically when trading that account?

 

wrong. you are implying that if he trades while on vacation out of the country there is no tax due.

 

Depending on the double tax treaties that Canada has, it might be possible to be taxed in the other country. He should check that with a professional tax advisor. I have in writing a confirmation from the Ministry of Finance that for me it would be taxed in the second country, but I live in EU not in Canada.

Vacation is not valid and I never insinuated that. For EACH trade he should be in that other country, so vacation is excluded. Physical presence is mentioned in many double tax treaties.

 

I am physically in Canada

 

I will transfer the money from their account to mine as I live in Canada. So I need to transfer the money I made under their account name to my bank account

 

Then you will have probably a problem. You will be taxed normally.

 

Can you further explain that please? How would you then take out the money from the broker?