Which prop firms actually hire you to trade there?

Discussion in 'Prop Firms' started by Daal, May 12, 2007.

  1. Daal


    I live in brazil and because of the country tax code is almost impossible to daytrade profitably(you cant deduct losses believe it or not)
    If I put my money on a firm like bright and trade remote through them, for taxes purposes on my country that would be the same as putting money at IB.

    So I'm trying to find a firm that will actually hire you so I have a different tax treatment
    Is there one?It doesnt have to issue a H-1B visa or something as I plan to trade remote, but just to hire you and subject my trades to the US legislation and then pay me my profits as 'salary'
  2. Since you are given a K-1 based on your net trading profit or losses, vs. a retail "profit" and "loss" individually, you would likely be taxed on the net. Imagine a grocery business who was taxed on their gross revenues, without being able to deduct the cost of meat and potatoes? I doubt your Country would treat business people that way.

    That's what I can offer from my end, I hope it helps.

    You can feel free to contact my Compliance Officer at some point if you decide you might want to make the leap....let me know.

  3. Daal


    You might be right here. They let you deduct capital losses on national stocks but not on foreign, I believe thats because people could start claiming huge losses to not pay anything.
    If this K-1 can be issued to non-resident aliens(can it?) I believe they will have to accept it the net gain thing since it will be an 'official' statement from a company and the IRS is reported
    I have one question though, is this k-1 monthly, quarterly or annual?
    I'm interested on 'retaining' the profits as much as possible so I can coumpound them tax free, I dont plan to put milk money so I wont withdraw anytime soon
  4. well most prop firms dont actually "hire" you. you are pretty much their customer in the form of a limited partner since they dont pay you any salary and they profit off your commissions.

    the only exception i can think of is First New York where they pay a base salary to their traders.