Is it legal to buy stocks for someone else?
You cannot trade securities for others without becoming licensed as an investment professional. Investment professionals must be registered with the Securities and Exchange Commission or have a federal license. There are few exceptions to this rule.
You can start the process online in your own brokerage account by opting to gift shares or securities you own; if you can’t find that option, contact your brokerage firm directly. If you want to gift a stock you don’t already own, you’ll have to purchase it in your account, then transfer it to the recipient.
Can I open an investment account in someone else’s name?
You can open a joint brokerage account with anyone you trust, including a partner, parent, sibling, or even a close friend. Most brokerage firms, including robo-advisors, offer joint brokerage accounts. … To open an account, you’ll need basic personal and financial information about each account holder.
Shares owned by a person can be gifted to another person (relative or otherwise) by following a certain procedure. Since gifting constitutes a transfer, and the transfer is for no consideration, such a transfer can be carried out using the “off market transfer” mechanism.
Can I buy stock for my nephew?
Opening a custodial account
The thing to do would be to open a custodial account for the child or children in question. … The securities (stocks) held in the account are owned by the child, but the adult has legal responsibility over the account.
Stocks can be given to a recipient as a gift whereby the recipient benefits from any gains in the stock’s price. Gifting stock from an existing brokerage account involves an electronic transfer of the shares to the recipients’ brokerage account.
A gift of shares from you or your wife to your son is also a deemed disposal of shares for capital gains tax purposes. As the gift is being made to a connected party, it is a deemed disposal at market value. … It does this by effectively transferring the capital gain to the recipient of the gift.
Can I pay someone to trade stocks for me?
The easiest way to trade stocks will be to pay someone else to trade stocks. There are a number of well known stock brokers, and you should not have trouble finding someone who can place trades for you and give you advice.
Can two people own an investment account?
Joint investment accounts allow two or more people to invest together. You can invest in just about anything with a partner, including stocks, bonds and funds; property (such as vehicles); or real estate. Combined ownership in financial assets is referred to as joint tenancy.
Can I trade on behalf of someone else?
Registered investment adviser (RIA)
On the other hand, an RIA can only advise, and the customer is required to execute the trade. … But an RIA cannot trade on behalf of the customer. The fees have to be collected separately from the customer, either as a fixed fee or as % of AUM. No profit-sharing is allowed.
Is it illegal to use your parents stock account?
Custodial accounts legally cannot be used to pay for daily living expenses that the parents would normally pay for. … Once the child reaches the necessary age and gains control of the account, they’re free to withdraw money as they like or sell off any of the investments in the account.