Is it legal to trade stocks for other people's accounts without obtaining a license?
Question:
Answer:
If you are doing this out of the kindness of your heart, you're probably okay. But you need to be licensed before you accept _money_ for trading their account (especially if you lose the client's money and they run screaming to the authorities) For example, see the Illinois Securities Department's Admonistrative Rules (link 1).
In Illinois, I am fairly certain you would need to register as an Investment Adviser (after passing the Investment Adviser Examination).
But if you can bring accounts into a brokerage, and you are as good as you say, than why not work for one? Perhaps you can work your way up the business (or eventually start your own). The additional required licensure exams are not rocket science:
the basic one is the Series 7 (General Securities Representative) exam (link 2).
Good luck!
----- excerpt from link 1 ----
Section 130.221 Exclusion of Certain Persons from the Definition of Investment Adviser in Section 2.11 of the Act
Any person whose investment advice is limited to providing such advice to his or her employer as part of the employee's regular assigned duties, who receives no special compensation on account of such advice (other than salary and other compensation alternatives generally available to persons at a similar level of responsibility within the employer) and who is not held out to the public as an investment adviser by the employer is hereby designated as a person not within the intent of Section 2.11 of the Act pursuant to Section 2.11(6) thereof.
You probably can if they give you a Power of Attorney. But you cant charge them for it unless you are registered as an investment advisor. Its not that hard to become a Registered Investment Advisor. Just take a couple of NASD exams, and get registered with the state.
Yes, you can trade their accounts with a power of attorney. As mentioned in other answers, if you are going to accept compensation, you may need to be registered as either an Investment Advisor, or stockbroker.
Under most states investment advisor acts, a limited amount of clients are allowed before you must register.
More Questions & Answers...