I've seen a lot of people talk about the IB Friend's & Family account and have tried to find some information out independantly, but was hoping I could get some quick answers on here for some gray areas. 1. It's my understanding that each sub-account will be responsible for their own taxes. If capital gains tax only applies to long-term trades, and the client's account is used to make short-term to mid-term trades, then each client will be taxed on the account's gains at their individual income level. Correct? If so, how would this type of SMA be more tax efficient than if the client invested in mutual funds? I have some more questions, but wanted to get a guage on if I would receive honest and serious answers first. Thanks in advance.