Is stock trading on another persons behalf legal? ?
I was offered a job recently by someone I just started to get to know at the school I go to. He offered to pay me to stock trade for him (on his personal account) when he goes back to his country. I would be getting paid through western union, all I have to do is buy stock for him and that’s it. Is this legal? I don’t know much about stocks and stock trading
- 9 months agoFavorite Answer
This offer smells to high heaven. There is nothing to stop a person trading in his account from overseas. How would the broker know or care where the account holder was located at the time of the trade?
The only reason a person might want someone else to place trades on his behalf is that he is planning to do something illegal and wants you to be the one sent to prison. I am betting that the 'personal account' will be titled in your name not his and that he plans to siphon out the contents as and when he wishes to a bank account you cannot reach leaving you with the debt/insider trading violation/theft.
Whenever you hear the words 'paid via Western Union', you know there is criminal intent.
- RICKLv 79 months ago
He's scammikng you
People buy stocks fromnoverseas locations several times everyday
I have done it myself while on vacation
- tiescoreLv 69 months ago
1) Is his home country on the OFAC list of restricted countries? If so you'd be participating in a felony.
2) You are setting yourself up for being liable for any market losses he experiences as you are not a registered investment advisor.
While it can be technically legal for one person to transact for another's account, there are more things to consider than just the general legality of it. I've been in the financial industry for over 30 years, and been learning about the stock market since I was 12. I don't even like to recommend a stock for others to take a look at do to liability concerns. There is NO WAY I would ever get involved in what you describe.
- TavyLv 79 months ago
He can buy online from any country in the world.
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- Burberry McChavLv 69 months ago
Western Union is for sending money to family and friends, it's not for receiving wages. It is untraceable and no legitimate employer would pay you that way, he would have to lie to send you the money because WU would refuse to send it otherwise. Just for that reason stay away from this.
- YYYZZ 2Lv 79 months ago
As long as they stay bearer bonds and do not get registered in your name. Legal.
- NALv 79 months ago
A) Illegal for someone who is not a licensed broker to buy/sell stock for someone else.
B) Clearly a scam.
- Anonymous9 months ago
It sounds shady. He could buy his own stocks. He is setting u up for a scam.