Been trying to find some answers. Does anyone know weather trading my friends money under the table is legal. Im not doing it yet but i thought it would be a easy way to bring home a few bucks every week. Im 16 and use my dads account. Can anyone help me with the legality of the situation. No i didnt just get pumped up and want to trade stocks after watching wolf of wall street. And if it is illegal how illegal. I would appreciate an answer. Try not to get to worked up after reading this. Im sure i sound like an idiot.
Future 16 year old billionaire question
- Thread starter juniorbroker45
- Start date
From a legal perspecctive, I doubt anything would occur unless you lost all your friend's money and he sued you.
It's your Dad's account
He needs to call the broker.
They may offer what's called a joint transfer to minor account where you are both listed on the account and at age 18 his name drops off. This would segregate funds so you don't lose his life savings (read that your inheritance).
As to a minor actually doing the trades, since you can't enter into a contract and sue or be sued, that may be an issue. That's a broker question. Maybe by having his name on the account until you reach the age of majority it will cover that issue, but let the broker answer that question.
Good luck!
He needs to call the broker.
They may offer what's called a joint transfer to minor account where you are both listed on the account and at age 18 his name drops off. This would segregate funds so you don't lose his life savings (read that your inheritance).
As to a minor actually doing the trades, since you can't enter into a contract and sue or be sued, that may be an issue. That's a broker question. Maybe by having his name on the account until you reach the age of majority it will cover that issue, but let the broker answer that question.
Good luck!
Get a power of attorney.
Get a written agreement between the parties of how funds will be distributed should anything happen to you.
Or
Pool the money
http://www.cftc.gov/industryoversight/intermediaries/cpocta
If your 16 maybe you should consider chasing after girls instead of growing gray hairs
Get his pswd and access his acct as him to place the trades... You were never there.
x2 You're 16. Get ready to go to college and have a blast. Come back to this when you're 30
Thanks for the info gents. You've solidified my initial idea on legality issues. Just make sure to look for me on Cnbc one day. Not guna run it but definitely not going to stop learning and personally trading.
Good to hear. I was trading discount "arbitrage" in verticals by dictating orders to my dad who would call the phone broker. I was ~17 at the time. It's never too early to start, but that really doesn't apply to managing outside money.