Trading a family member's personal account, question

JSOP said:
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.
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That is not true. Authorization can also be verbal. But if you mean having all the papers, that's not what the OP was talking about. He said:

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."

That did and will get the account frozen. I'm talking about practical cases, what happened to me. Not theory.
 
TimtheEnchanter said:
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!
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They can call the account holder for whatever reason and if the account holder lets slip that he is not exactly aware of every trade in the account...
Or you open a support ticket and they reply by phone, the holder will have no idea what they are talking about.
So, coordinate carefully.
 
I am doing this for my immediate family therefore trading IB with 7 accounts as "family accounts" and 3 accounts with Fidelity. It isn't a big issue as long as you have authorization from the individual via a Form and Power of Attorney for that account (all thru the brokerage). Every quarter I have to verify the accounts the usual blah blah non professional for IB , and Fidelity is in lala land and doesn't seem to care. I may even open up to cousins (without charges) but the way I trade I do need at least 6 figures per account.
Seriously its no big deal dont understand why there is 4 pages attached to this link.
 
TimtheEnchanter said:
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!
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I suggested the notarized POA, in order to protect the OP, from ANY type of future liability. People change, things happen, and I have been witness to "selective amnesia" from some true bastards. I made several mistakes in not getting everything in writing, and just taking someone's word/handshake. I was naive, and inexperienced in the real world, because I had never had to interact in it. I went from college directly into trading, and it was "eat what you kill". Easily these "mistakes" cost me around $1M; don't make unnecessary, stupid mistakes like me.

So, please, pretty please with sugar on top, get it on paper, and get it notarized...

And be especially careful with family members/relatives!
 
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Mark2m said:
I am doing this for my immediate family therefore trading IB with 7 accounts as "family accounts" and 3 accounts with Fidelity. It isn't a big issue as long as you have authorization from the individual via a Form and Power of Attorney for that account (all thru the brokerage). Every quarter I have to verify the accounts the usual blah blah non professional for IB , and Fidelity is in lala land and doesn't seem to care. I may even open up to cousins (without charges) but the way I trade I do need at least 6 figures per account.
Seriously its no big deal dont understand why there is 4 pages attached to this link.
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Blah, Blah.

It's actually a big deal. For real...

Get it on paper, notarized.

THEN, feel free to sign ANYTHING online!!!
 
Mark2m said:
Of course you have experienced this with both IB and Fidelity so evidently my experience is different from yours.
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No worries. I was more concerned about the "family member". I have had my fair share of bad experiences, that could have easily been avoided, had I followed through on my comment above.

Unfortunately, I cannot turn back time, and it really sucks. I wish I could tell the above comment to a younger me!
 
I learned my lesson years ago, you are always dammed if you do and dammed if you don't. You are only a hero until the next trade when they don't place a stop loss and you are at fault. Never mind how much money they made on your recommendations in the past. Now IB has a "family account" which we have various Roth's, IRA's, Brokerages, plus I am handling my two kids brokerages and IRA's. (one password and security entry) They only request a quarterly update that 1) you are not a professional 2) any change in the accounts with financials etc... This is mainly for ease of access and above all always trying to save on screen real estate. Even with 4 screens 32" I still have problems with the accounts and 3rd party platforms. IB and Fidelity both have worthless charting software therefore use Sierra and TC2K.
 
Mark2m said:
I learned my lesson years ago, you are always dammed if you do and dammed if you don't. You are only a hero until the next trade when they don't place a stop loss and you are at fault. Never mind how much money they made on your recommendations in the past. Now IB has a "family account" which we have various Roth's, IRA's, Brokerages, plus I am handling my two kids brokerages and IRA's. (one password and security entry) They only request a quarterly update that 1) you are not a professional 2) any change in the accounts with financials etc... This is mainly for ease of access and above all always trying to save on screen real estate. Even with 4 screens 32" I still have problems with the accounts and 3rd party platforms. IB and Fidelity both have worthless charting software therefore use Sierra and TC2K.
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when I see these posts I think two things:
Either you are a bad trader or you have derelict family members.
Either way you should know better than to advise them.
 
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