Trading a family member's personal account, question

[TimtheEnchanter]

I just signed one for my wife with Fidelity.

 

[JSOP]

Thanks for the replies.

I'm not doing this currently, and based on the replies, I think the answer for me is that I would discuss with my broker before doing so, just to be as absolutely above-board as possible. And probably have a written agreement as well.

I guess an alternative would be to go through a 3rd party such as collective2 so that the family member's account would auto-trade my signals. But that would be a relatively painful way to accomplish what would amount to exactly the same thing.

Yeah if they allow a total stranger, 3rd-party entity like collective2 to autotrade your family member's account, how can they not allow a relative of your family member such as you to trade the account given proper authorization? LOL

 

[JSOP]

Debating theory is great but in practice, that is not what happens. Account will be frozen immediately. Speaking from personal experience.

What I am talking about is not theory. There is no way that brokers will freeze somebody's account just because it's been traded by someone else, unless it's unauthorized.

Yeah if they allow a total stranger, 3rd-party entity like collective2 to autotrade your family member's account, how can they not allow a relative of your family member such as you to trade the account given proper authorization? LOL

 

[zdreg]

I just signed one for my wife with Fidelity.

Your comment would have be interesting if you had said I just signed one with my wife and simultaneously with my mistress.

 

[zdreg]

What I am talking about is not theory

Just nonsense.

 

[JSOP]

Bona Fide means in Good Faith right?

https://www.merriam-webster.com/dictionary/bona fide

 

[TimtheEnchanter]

Your comment would have be interesting if you had said I just signed one with my wife and simultaneously with my mistress.

I am not a rich enough trader for a mistress.

 

[ChipShotTrader]

Suppose a family member says:
"Here's my login info, make some trades in my personal brokerage account for me. Purely as a favor with absolutely no compensation at all and no liability."

Let's immediately stipulate at the outset that it is very likely not WISE to do so for any number of reasons, such as family member getting big mad when I blow up their account, claiming theft of password and suing, etc.

But is there any Federal/State legal or other regulatory consideration that you are aware of? Aware of any brokerage's rule that would be violated?

Also given that I am not a professional, am unlicensed, and not presenting myself as in the business of being an advisor.

Notarized Power of Attorney (POA).

That's it.

 

[TimtheEnchanter]

First off, if I trade an account that is under the same roof, even if a different IP address, there is no way the broker could ever prove who put on the trade! Maybe it would be a different story if the trade came in from a different locale...still better to be safe than sorry. It is only a broker form! Not a notarized anything! I have seen and signed the form electronically with Fidelity, why would they have that if they accept other crap! Ask yourself!

 

[RedSun]

I still think the legal way POA is the way to go. You could trade your spouse or adult child's account without POA, not caught. But it is not legal. To broker, that is unauthorized trading since you trade someone's account without authorization with the broker.