You’re learning to day-trade, you are practicing a lot and testing strategies, and boom. You have a solid strategy. The next thing you know is your friend asking you to trade for him. So, this question pop into your mind: Can I trade stocks for someone else?
That question is more popular than you think, even pro traders have asked this at least one time. Obviously, you need legal requirements to manage other people’s money. That way you can avoid a lot of trouble.
So if you’re thinking to start trading stocks for others. Better, let’s get that question answered. I’m going to be covering other trading stocks for other related questions.
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The short answer is: no.
You can’t trade stock for someone else. That’s illegal unless you’re an investment professional. There are a lot of legal requirements to manage other people’s money. Stocks and investments fall under this rule.
You do need a license to trade other people’s money. Besides, being an investment professional. You need to be registered with the Securities and Exchange Commission. In some case, you will need a Federal License
I really hope that’s pretty clear as water, I don’t want you to get in trouble. If you still want to trade stock for others, there a few options waiting for you.
1. You can get a job in an investment firm, get your license and take your friends and families as a client.
2. Get a financial degree. Meet the legal requirements needed for trading stocks for others. Take your friends and family as a client.
The options for this are very limited, you need to be a financial advisor. This is how do you trade on someone’s behalf.
I know this post may get you less excited, but you can get in trouble if you go around trading stocks for others. I hope this solves your question, “Can I trade stocks for someone else?”.
Remember, you can’t trade under someone else name.
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