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IB FA sub-account for an LLC
- Thread starter SideShowBob
- Start date
I have had an LLC sub account for years without paying pro fees. I have not charged any fees to sub accounts though so I can't weigh in as to whether charging your sub accounts fees will change this.
What I was told (and I assume is true since I haven't been charged pro fees) is that since the master account (and data subscriber) is not an LLC, you do not pay pro fees for data.
What I was told (and I assume is true since I haven't been charged pro fees) is that since the master account (and data subscriber) is not an LLC, you do not pay pro fees for data.
Quote from SideShowBob:
I have had an LLC sub account for years without paying pro fees. I have not charged any fees to sub accounts though so I can't weigh in as to whether charging your sub accounts fees will change this.
What I was told (and I assume is true since I haven't been charged pro fees) is that since the master account (and data subscriber) is not an LLC, you do not pay pro fees for data.
Unfortunately, the definition of pro limits non-professional access to "Natural Persons". Here is a link with the NYSE declaration form. Look at the top of page 2, section2.
http://www.igmarkets.de/content/files/exchange_agreement_nyse.pdf
So an LLC account that has access to live data is a pro account, even if it is single owner LLC for someone not in any professional financial services capacity.
In an IB financial advisor account structure, the sub-account does not have access to the market data anyway (the user who logs into the sub-account cannot see live data). Accordingly, the sub-account is completely irrelevant for the pro/non-pro question. The FA sees the data. If the FA is a natural person (not an LLC or legal entity), and meets the criteria stated in the declaration (items 2b, 2c), then non-professional status is possible. Any commission generating relationship between the master and sub account pretty clearly makes the activity "professional".