Not declaring yourself a professional when you really are
- Thread starter ChrisMMM
- Start date
Why do jews have such big noses??? Because air is free!!
Jew jokes aside, I've personally made the following substitution in my mind for data vendors:
Professional= non-personal use, non-pro = personal use.
So a broker using data to advise clients, yes, pay up. Prop trader required to have a S7, pro fees are a rip off.
I fall into the second category. I also subscribe to the same exchanges from up to three different data vendors. I'd actually be happy and willing to pay pro fees once per exchange, but each data vendor requires you to pay. So I've taken the stance that the data is for my personal non-professional use. My firm makes me pay pro fees for exchanges through my trading platform, I do not pay pro for the ones I sign up for on my own.
My opinion does not agree w/ the exchange agreements and standard definition of pro, so as usual this advice is worth what you paid for it.
Jew jokes aside, I've personally made the following substitution in my mind for data vendors:
Professional= non-personal use, non-pro = personal use.
So a broker using data to advise clients, yes, pay up. Prop trader required to have a S7, pro fees are a rip off.
I fall into the second category. I also subscribe to the same exchanges from up to three different data vendors. I'd actually be happy and willing to pay pro fees once per exchange, but each data vendor requires you to pay. So I've taken the stance that the data is for my personal non-professional use. My firm makes me pay pro fees for exchanges through my trading platform, I do not pay pro for the ones I sign up for on my own.
My opinion does not agree w/ the exchange agreements and standard definition of pro, so as usual this advice is worth what you paid for it.
It is probably something you can get away with. I know people who do. If you open your account under the name of a company there is no way out. That is probably who the exchanges are more concerned about, corporations rather than individuals.
But what would happen if you filed your taxes as a pro trader and then used a non-pro subscription. Does the IRS communicate with the SEC about pro/non-pro status? Doubt it.
It's the kind of thing you do and if you are caught say, whoops, I thought I was non-pro. I'm sorry I will do pro now.
But what would happen if you filed your taxes as a pro trader and then used a non-pro subscription. Does the IRS communicate with the SEC about pro/non-pro status? Doubt it.
It's the kind of thing you do and if you are caught say, whoops, I thought I was non-pro. I'm sorry I will do pro now.
its a major offense.
a felony if your are convicted.
Yes, Not sure if you seen the episode of simpsons where SEC swat teams comes in. But its based on a true story actually. Its what happens when you declare as non-pro and are actually trading from home.