Hey guys, I'm just getting started with day trading. Since I don't have 25k (or 15k) to create a SpeedTrader account, I'm just going to create a SureTrader account. I am astonished at all the very sensitive information that needs to be provided when creating an account. It makes me very uncomfortable to say the least. Is this something all traders have to go through? Is it common for all trading websites? Is it secure? Thanks for the help! -Max
Yes, name, address, proof of address, financial situation. What do you find too sensitive to share with a reputable broker (not making any claims about your chosen broker) who is supposed to weed out questionable characters. In any case your data will be reported to IRS by the broker, an institution who already has your information "on file". What to worry?
I also have to provide my passport, driver license and social security number. Is SureTrader a reputable broker? Since I'm from Canada, I don't think my data will be reported to IRS. Maybe a similar Canadian institution? Thanks for the reply Conduit!
That is not accurate. Brokers who deal with US residents are required to pass on full client information to the IRS. And they are NOT required to report trading activity. They are only required to release trading activity when the IRS orders an audit of relevant client. That at least is the information I received from a tax accountant who helped me when I resided in the US.
Remember, SureTrader is offshore (Bahamas) and if you're a U.S. citizen they will ask for the standard information for identification purposes and compliance with AML rules. Look up the prior thread regarding SureTrader as it related to FBAR (Foreign Bank and Financial Accounts). They received notifications from the IRS commanding to know the identities of any U.S. citizen. If you're going to put up $10k or more or if your highest balance within the year exceeds $10k, then you might want to look into the rules regarding FBAR, because SureTrader WILL share your information to the IRS, even though its jurisdiction is the Bahamas. The fines for not filing the forms relating to FBAR are very hefty. Just something to keep in mind if you plan to have $10k or more. I helped my aunt research this recently as she had an asset sale overseas and the foreign bank sent her a notice regarding FBAR. Even AFTER she paid the tax overseas and wired the money to the U.S., the corporate office at Citibank called her demanding to know why she had wired in a large amount and for what purpose (it was well into the six figures). All this crap is completely ridiculous and shows the far reaching powers of the money grabbers (i.e. the banks and the IRS) harassing the common folk. They're trying to find out where everyone has money stashed, so they can find ways to take it when the time comes. Meanwhile the Fortune 500 companies stash BILLIONS in lower tax jurisdictions because they know how to work the loopholes in the tax code. Just my 2 cents.
You can read the rules regarding FBAR here: https://www.irs.gov/uac/newsroom/ta...ve-fbar-and-fatca-filing-requirements-in-june
Some people scream when the rich abuse loopholes but also scream when the IRS looks to close loopholes and abuse as well as money laundering. Can only have it one way