How to trade on behalf of foreign investor?

S

SuperVolatility

Someone from overseas wants me to invest on their behalf. They don't have an account in the US.

What is teh best way to approach this? Since it's a family friend I though I'll just comingle the funds with my accounts ... but might be a compliance risk. No?

Thanks for any suggestions.
 
ask him to open a broker account in US, and authorize you to trade his account. Do not put his money in your account, because you will have tax liability.
 
Quote from SuperVolatility:
.......a compliance risk. No?
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Talk to your brokerage firm to be sure there are no issues with bringing in money from overseas. :cool:
 
Quote from nazzdack:

Talk to your brokerage firm to be sure there are no issues with bringing in money from overseas. :cool:
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Always +1
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This could be a money laundering scheme (with or without the OP's knowledge) and/or there could be several issues assoicated with the transaction in this modern day anti-terrorist political environment.
 
Quote from trend2009:

ask him to open a broker account in US, and authorize you to trade his account. Do not put his money in your account, because you will have tax liability. [/QUOTe
Good point.

I have not talked to the any brokers yet but will they open an acocunt for non-US Citizen?
More...
 
Quote from SuperVolatility:

Quote from trend2009:

ask him to open a broker account in US, and authorize you to trade his account. Do not put his money in your account, because you will have tax liability. [/QUOTe
Good point.

I have not talked to the any brokers yet but will they open an acocunt for non-US Citizen?
More...

well why don't you ask them
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he can open account with IB. there is no problem for foreigners to open brokerage accounts in US. Opening a brokerage account is not as difficult as a banking account, because there is concern for funding terrorists from a banking account, while brokerage account is investing in US which is welcome by the government.

Quote from SuperVolatility:

Quote from trend2009:

ask him to open a broker account in US, and authorize you to trade his account. Do not put his money in your account, because you will have tax liability. [/QUOTe
Good point.

I have not talked to the any brokers yet but will they open an acocunt for non-US Citizen?
More...
More...
 
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