The only tax consequence is that of my friend based on the gains and this is an IRA account. I do not take any money for trading his money; there is no "advisor fee" or any other financial incentive for me. I do it at no cost because he's a long time friend and I'm merely mirroring my trades by buying (selling) the same stuff in his account.
Best way to trade friends money is with the expectation that you will lose those friends in the near future. As soon as you start losing money it will become personal and they will pull out their money and you will lose the friendship. Do so at your own risk...
Everyone's assuming this guy is going to lose money or blow up the account, is there something I've missed here? For all anyone knows he may well have a 'very good stock market options trading system' which will make his friends a ton of cash and they'll all end up being lifetime buddies!
Thank you everyone for the valuable input! Now, I understand the worst case scenarios very well! This is very useful! I have been trading with IB for a while but didn't know about Family & Friend's advisor account! If I trade my for my friend, this will help me to put the same trades in my friend's account as in my account! Cheers & have a wonderful week!
Thank you everyone for the valuable input! Now, I understand the worst case scenarios very well! This is very useful! I have been trading with IB for a while but didn't know about Family & Friend's advisor account! If I trade for my friend, this will help me to put the same trades in my friend's account as in my account! Cheers & have a wonderful week!
Hello, There are a number of Forex brokers that offer PAMM (Percent Allocation Management Module). Is Interactive Brokers' PAMM solution only for forex or one can also trade stocks and futures via PAMM (using Interactive Brokers)? Thank you