Possible to open a futures account with no net worth?

Discussion in 'Index Futures' started by NeoRio1, Dec 1, 2008.

  1. I've got a friend who has been trying to open a futures account.

    He currently is a college student and does not have a job but he tells me hes got around 10k that he wants to trade futures with.

    Hes been turned down by a couple discount brokers because they want him to sign a joint account because he really has no net worth.

    I thought about signing it for him but im still kind of undecided about his trading skill.

    Anyone here know of any discount futures brokers that let people open accounts even when they have zero net worth?
     
  2. What minimum net worth is required ?
     
  3. Basically his parents support him entirely so he has no expenses.

    He's got 10k he wants to trade with but besides that he has zero net worth.

    Would any broker let him open an account with zero net worth?
     
  4. Brokers need to know that if you blow out your account and get into a deficit situation, they can get reimbursed what they are owed.

    Brokers would be foolish to let customers trade on high leverage when they are thinly capitalized.
     

  5. If you open a account through a company, they look at the net worth of the company or the person controlling the company ?
     
  6. jtnet

    jtnet

    just lie? who cares he will probably lose it in a few weeks anyway.

    anyway... how could they verify that u just won the lottery and have liquid 1 mill in the bank? thats right they cant.
     
  7. bbqbbq

    bbqbbq

    The only ask because then the responsibility falls on your friends shoulders. So that when hes in debt, its his fault and not theirs. Theyre just complying with the law and common sense. Theres a reason they ask you to sign 20+ documents when opening an account. If youre friend lied, there wouldnt really be a way for them to see if hes telling the truth. Generally you need minimal 2x the amount youre gonna trade with in your bank account, im not sure if thats exactly right but it makes sense. He could just say he has 10k to trade with and 20k in his bank account/house/car and he'd probably be able to open an account. although that might not be the smartest thing to do, the way you make it sounds like hes a totally newbie so its better if he saves up additional 5k in one year and trade sim for 1 year or something like that
     
  8. Not sure.

    But it's possible to close one with no net worth.
     
  9. kxvid

    kxvid

    Sure its possible. Thinkorswim for one doesn't care about net worth for accounts. As long as you have enough cash youre good.
     
  10. henry76

    henry76

    jtnets right , brokers don't care if you lie about net worth , they just have to be seen to ask .
     
    #10     Dec 8, 2008