Actually, I Don't Do Any Trading

[SarahAK]

Is what I am doing legal?

MY POSITON IN THE TRADING ACTIVITY
A family member who trades asked me to pay for account she wanted for trading foreign currencies. The only paperwork I have seen for this arrangement is an invoice she sent to me for $1,000, payable to a broker who lives in Greece. The broker says his business registered in Saint Vincent and the Grenadines, a country in the Caribbean region. I looked up the registration for the broker’s company in Saint Vincent and the Grenadines. It’s registration expired Jan 1, 2023. My family member says she has received her previous earnings from the broker without any problem.

The $1,000 is the fee they charge for an account where $100,000 of the broker’s money is deposited into an account the account purchaser controls. The account and trades are controlled in a way that prevents losses over a certain amount.If the account owner loses more than a certain amount, the account is closed immediately.

The benefit of this account is a person with $1,000 can place trades of a lot more than the $1,000 they have

My family member expects to generate profits on this trading, says 25% of the profits will be paid to me in return for the loan I provided for buying the account.

If profits accrue to this trading account, and 25% of the profits are sent to me, that money does not seem like it trading profit, but I don’t know the rules, because I am not doing any trading. To me, it seems like a return on a business investment

TWO ADDITIONAL NON TRADERS INVOLVED

My trading family member has similar arrangements with two other people. Each of them sent $400 to my family member That money was used to buy accounts similar to the one I paid for. Those accounts were lost when my family member lost the amount that triggers automatic shutdown of the accounts. My family member promised to send a certain share of trading profits to them, similar to what she promised me. The current plan is to pay them out of the earnings in the account I paid for.

If it legal for my family member to accept money from other people promising to repay them a fixed percentage of the profits.? To me, that sounds like what brokers do.

[SarahAK]

When I wrote about taxes yesterday, the information I had about the broker is different than what I found out earlier today. I thought the broker lives in Monaco and his business is based there. Turns out, he lives in Greece and he says his business is based in St. Vincent in the Carribean.

[tommor]

This setup sounds so bad I can’t believe it is real.

[PrestonRiver]

@SarahAK

Is what I am doing legal?

MY POSITON IN THE TRADING ACTIVITY
A family member who trades asked me to pay for account she wanted for trading foreign currencies. The only paperwork I have seen for this arrangement is an invoice she sent to me for $1,000, payable to a broker who lives in Greece. The broker says his business registered in Saint Vincent and the Grenadines, a country in the Caribbean region. I looked up the registration for the broker’s company in Saint Vincent and the Grenadines. It’s registration expired Jan 1, 2023. My family member says she has received her previous earnings from the broker without any problem.

The $1,000 is the fee they charge for an account where $100,000 of the broker’s money is deposited into an account the account purchaser controls. The account and trades are controlled in a way that prevents losses over a certain amount.If the account owner loses more than a certain amount, the account is closed immediately.

The benefit of this account is a person with $1,000 can place trades of a lot more than the $1,000 they have

My family member expects to generate profits on this trading, says 25% of the profits will be paid to me in return for the loan I provided for buying the account.

If profits accrue to this trading account, and 25% of the profits are sent to me, that money does not seem like it trading profit, but I don’t know the rules, because I am not doing any trading. To me, it seems like a return on a business investment

TWO ADDITIONAL NON TRADERS INVOLVED

My trading family member has similar arrangements with two other people. Each of them sent $400 to my family member That money was used to buy accounts similar to the one I paid for. Those accounts were lost when my family member lost the amount that triggers automatic shutdown of the accounts. My family member promised to send a certain share of trading profits to them, similar to what she promised me. The current plan is to pay them out of the earnings in the account I paid for.

If it legal for my family member to accept money from other people promising to repay them a fixed percentage of the profits.? To me, that sounds like what brokers do.

Offshore brokers are fine as long as they pay out — a lot of good prop-style setups work that way. Honestly, lately even some regulated brokers have been caught doing shady stuff, and regulators barely step in, so I am keeping my faith with user reviews and their experiance rather than regulations!

[EmeraldEyes]

Your family member has a gambling problem with prop firms.

[Supercargo]

Sounds shady. A broker registered in St. Vincent with an expired license and no oversight is a huge red flag. If your relative’s taking money and promising returns, that’s investment solicitation, not trading and yes, that can cross legal lines fast.