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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9872
Experience:  30 years of corporate, litigation and international law
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Does A Foreign Trader Can Manage A Forex Account U.S.

Customer Question

Does A Foreign Trader Can Manage A Forex Account For A U.S. Citizen? Hello, I am a foreign Forex trader (non-us citizen) and 2 friends of mine (American citizens) opened a Forex account in the US with a US broker. Now, they saw my trading abilities and
asked me if I can trade on their account and get commission off the profits. I agreed, but then the thoughts came up. I don t have any brokerage license, I am a freelance trader and I studied it by myself (my friends are aware of it). I live in Europe and
have a B-1/2 visa. My main question is: Is it legal to do the above arrangement? Trading on my friends account and get paid by them monthly according to the same month s profit without having nor brokerage license or work permit/visa? Thank you.
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

It is my understanding that you are trading foreign exchange in the futures market. Generally, anyone who acts as a broker in the futures in the U.S. market has to be licensed. There is also an investment adviser's act that governs giving advice. Based on the foregoing, without knowing more about how you will operate, you will need to be licensed. However, here is a link and you can call to see if what you want to do qualifies for an exemption.

http://www.nfa.futures.org/NFA-registration/index.HTML

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Customer: replied 1 year ago.
Thank you,I'm not sure if it relates to the futures exchange, as forex is kind of exemption from stocks and futures. To trade on behalf of a friend (on his account with his written permission), and act as the actual trader in the amount, without having a brokerage license nor US citizenship and work permit is illegal?
Expert:  Richard - Bizlaw replied 1 year ago.

Are you buying contracts to deliver foreign currency at some future date? Are you buying specified amounts of foreign currency for which you pay in full immediately?

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