Fees for real time prices on personal account when forming a corporation

M

Maverick2608

You are a home trader. For tax reasons you form a corporation to trade part of your capital through the corporation. You only trade your own funds in the corporation. When you apply for a corporate account, you will put your own name down as CEO and trader.

I guess you need to change your employment status in the personal account to CEO?

The corporation of course must pay professional fees for real time stock prices.

But what about the fees for real time prices in the personal account?

I think I recall you are still allowed to pay retail fees for a personal account if the corporation only manages your own funds?
 
I will try and respond based on each question.

  1. You use your title that matches your Operating agreement.
  2. How you represent your employment is up to you. If trading is my only source of income, I would use the LLC as my employer.
  3. Correct, with securities account, any account not open by a natural person, incurs Pro-market data fees. The CME has some exceptions.
  4. If your individual account has it own login, in most cases that would be non-pro unless you have other reasons for the exchanges to charge Pro market data fees. There is a questionnaire. On most trading software, at the same broker, you can log in once and access both accounts only paying for pro data once.
Bob
 
Robert Morse said:
I will try and respond based on each question.

  1. You use your title that matches your Operating agreement.
  2. How you represent your employment is up to you. If trading is my only source of income, I would use the LLC as my employer.
  3. Correct, with securities account, any account not open by a natural person, incurs Pro-market data fees. The CME has some exceptions.
  4. If your individual account has it own login, in most cases that would be non-pro unless you have other reasons for the exchanges to charge Pro market data fees. There is a questionnaire. On most trading software, at the same broker, you can log in once and access both accounts only paying for pro data once.
Bob
More...
Thank you for a thorough answer. We are lucky to have you on this board.
 
I may be wrong.

If you form a a corporation (even a LLC or S-Corp) you need to have your taxes done by a CPA. You may want to choose a CPA that has knowledge about trading and corporate setup...
 
You must log in or register to reply here.
Back
Top