I really don't know what to do?

Question

I have a strategy that makes wonderful returns, and my relatives are asking me to trade their money. I know it's not legal for me to give trading advice or solicit orders, however if my relatives are asking me to trade their money without me soliciting them or anything. Is it still legal or no? If not, what steps can I take to make it legal?

Answer 1

Generally speaking ~ there's nothing "wrong" with people (relatives) sending you funds and then you going with the funds what you wish to do ~ be it invest it or not.



I would highly recommend that you NOT do this . . . check in with yourself and thoughts about all the money being gone ~ how would your relationship be with these people should that happen ? . . . friends change; relatives are always there.

Answer 2

You said: "I know it's not legal for me to give trading advice or solicit or..." That is not correct. You have a right to have an opinion about anything, and the first amendment to the US constitution gives you the right to express that opinion {like on a blog} (as long as you do not disturb the peace). If your relatives want to listen to you or not, it is their right. What is not legal in most states if not all of them is you taking in other peoples money and investing it for them without the proper education, passing state tests and registering. Let them keep control of their own money.

Answer 3

It is legal to help people trade or trade for other people



HOWEVER, some of the worst people you can get invovled with are relatives



I suggest you speak to your accountant and make sure you are not doing this in your personal name. You may want to form a corporations, partnership or even a trust.



Unless you are structured as a proper entity you may have tax problems. Your could be exposing yourself to unnecessary liabilities so to trading errors, registration problems, and/or other fiduicary problems or exposures.



Get yourself structured before you do anything