It`s me dum dum again. A billionaire or a millionaire will trade 45 million $ just on Apple. If they do that, they need a broker, right? Since trading and retail traders can only have a 1 million $ account, how do the big guys buy millions of $ worth of stock?
Dont they have to deposit 50 million $ to a broker? How does that work? Say you arent doing much trading but portfolio management.
From different resources, Ive got 2 people asking me if I would actually leave over 1 million $ in my Broker Account. Thats where the info is coming from.
Can you please enlighten me? How much money can millionaires invest and put it money into a brokerage account to invest in stocks? Granted, there is a difference as you don`t touch the money for 1 year, and you either profit or lose.
So you are saying that you can, as a retail forex trader, have a 1 million $ account.
But a stock investing account can be as big as 1 billion $?
I also have a question about INDEX FUNDS: how can you put all the money in one that you don`t spend? Say you do well and make 20-30 million $ in your lifetime. Do you go to a broker, la Interactive Broker or XTB, and tell them to buy you index funds (for the US, German Dax, UK FTSE, and Japanese Nikkei?
Can you do that or is there a big risk that a Broker employee would transfer all of your funds into their bank account and you are left with a paid bullet and a rented gun?
I would imagine through investment firms or banks would be the safest route. I’m sure you would have your own account manager, and their involvement would depend on your risk tolerance.
I’m not aware of any legal limits on the size of a retail forex account, either.
I understand that different countries may have different laws, of course, but I’ve certainly never heard of such a thing at all.
For myself, there would be practical limits and risk-management limits, though, certainly: with that amount of money, forex CFDs wouldn’t be what I’d want to trade, really. Nor, probably, would I ever want more funds than would be covered by a government-backed guarantee on deposit with any CFD broker, however well regulated they were.
At this scale, no trader would do this as a private person as there are no tax advantages. Better to do it through a corporation, trust, family office or any one of a whole host of customized investment vehicles through multiple investment banks (not retail brokers).
Depends on several factors e.g. the trader’s relationship with the bank, how the trader trades, what sort of hedging requirements are needed, which asset classes are being traded, how much business is done with the investment bank and more. Yes cash can be deposited with the investment bank or it can also be done via credit facilities and collateralized assets or anything in between.
There’s no simple answer at this level as the set up is usually highly customized to the trader’s specific situation and needs.
Thanks for taking the time to answer. Can you trade and invest in index funds or ETFs from a normal comercial BANK or does IT have to be an investment BANK like JPMorgan?
Also i live in România can I create an account at JP Morgan without beeing a US Citizen ?
High-net-worth individuals or institutions use prime brokers or institutional accounts, not retail brokers. They don’t deposit $50M; instead, brokers facilitate trades through margin, credit lines, or custodial arrangements. For portfolio management, they focus on long-term investments, often leveraging financial advisors and asset managers for large-scale transactions.
It depends on the bank, some commercial banks provide access to different financial markets and may also have their own funds that give exposure to various indexes but they can be limited. You need to contact the specific bank to see what services they provide.
If you’re set on working with JPM, they have branches in the EU with European clients, no need to be a US citizen. There are also plenty of other banks in the EU that should be easily accessible for you. Should be quite simple to just browse the websites of these major banks (commercial & investment) that EU branches and contact them to see if they have the services you’re looking for.