Why I'm not going to get licenced post-Tuco:

Discussion in 'Professional Trading' started by aeliodon, Apr 23, 2008.

  1. 1 I have the cash to trade retail. I don't need 50-1 leverage. Besides 4-1 leverage is a lot safer than 50-1 over the long run.

    2 I like to do overnights - the big money and most favorable R/R ratios is in multi-day swings.

    3 I'm mostly a futures player anyway.

    4 I like earning interest on capital and I like SPIC insurance.

    5 I don't want to pay all those extra data fees which can cost thousands per year if you have multiple broker accounts.

    6 I don't want to send my prop firm all my statements from other brokers.

    7 My PDT account cannot ever fall below 25k - so I can't ever blow the entire account.

    I wonder if there are any tax benefits too. Is K-1 income treated more/less favorably than capital gains?
  2. western


    I believe you must pay social security and medicare taxes on k-1 income. If you are retail and qualify to be a trader in securities, your income is exempt from these taxes.