Never tell a broker you trade for a living?

[helpme_please]

We ask for your employment. You just have to say self-employed trader if that is accurate.

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For full-time traders, there seems to be some worry in saying one is a self-employed trader. If that's the case, I guess they can simply say they are self-employed freelancers in some creative arts or write software instead even though they may spend more time on managing their money.

 

[SteveH]

I do not agree. The exchange feeds and their requirements for the exemption and the IRS do not have the same standard.

Robert. If you get a power of attorney to trade your spouse's account where one is just an individual non-professional investor, does that put you in the professional class as far a being charged professional data fee rates? Thanks.

 

[DallasCowboysFan]

Why do you have to distinguish between a professional and non-professional trader?

I can understand why someone has to disclose the accounts they have with other brokerage firms and if their wife has an account, to avoid a conflict of interest and insider trading.

But why do you have to pay inflated fees for data? If you are the only one using the data, why do you have to pay more than a casual investor? I can understand paying more if you work in an office, but why is there a difference between a casual investor and a pro trader if only one person uses the data?

What other differences are there?

 

[MarkBrown]

i have a feeling pro's don't go around ducking fees they are focused on making money. neither do they think about taxes they just pay them and move on.

 

[sprstpd]

i have a feeling pro's don't go around ducking fees they are focused on making money. neither do they think about taxes they just pay them and move on.

I try to minimize my taxes and fees, but different strokes for different folks.

 

[MarkBrown]

I try to minimize my taxes and fees, but different strokes for different folks.

i agree i do that same however - i asked my mentor once in a elevator ride if he was going to get in on a offshore tax haven thing that some of the brokers at the firm were doing and he no "i just trade more contracts and pay the taxes". this taught me to focus on my trading more than anything - make money the rest will take care of itself.

that doesn't mean i like paying taxes but i don't want to get wrapped up spending money on lawyers to get me out of something like the brokers wound up doing in our office. that burned into my memory what stan had told me.

 

[murray t turtle]

But why do you have to pay inflated fees for data? If you are the only one using the data, why do you have to pay more than a casual investor? I can understand paying more if you work in an office, but why is there a difference between a casual investor and a pro trader if only one person uses the data?

What other differences are there?

%% Most likely they figure you could afford pay the bigger fee. WSJ noted the profit margin on exchange fees was about 70%. Reminds me of AT&T charging much more for commercial rate for a home phone; if you have a home based business+ were willing to pay it They had discretion ; i prefered + paid the lower rate , especially since i told them i had a home based business .

But the exchanges have a better rep than T.

Insurance rates could be fairly higher for commercials , more risk.

 

[Robert Morse]

Robert. If you get a power of attorney to trade your spouse's account where one is just an individual non-professional investor, does that put you in the professional class as far a being charged professional data fee rates? Thanks.

No.

 

[Robert Morse]

Why do you have to distinguish between a professional and non-professional trader?

Because the exchanges that provide data offer professional market data rates as the default. In order to receive the lower non-pro rates, you have to apply for that. It is approved based on how you answer their questions.

 

[murray t turtle]

Are there any advantages in telling the broker that one trades for a living full-time?

%% Sure is;
for the people sell data/ fees. Actually HI data fees had a hidden advantage; brings more competition to that sector.............................................................................