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Trading Other People's Money

Discussion in 'General Discussion' started by Boomer34, Oct 21, 2016.

  1. Boomer34

    Boomer34 Well-Known Member

    I have a quick question:
    I have heard multiple people talk about how they are trading multiple accounts and often other people's money as well...
    If I wanted to trade my retired parent's 401k for them (or at least a portion of it)...what is needed to get that done?
    Is it as simple as having them open an account at TOS, roll everything over, and I log into their account and place the trades? Or is there a more formal setup that is needed with additional paperwork?
     
  2. ACS

    ACS Well-Known Member

  3. garyw

    garyw Well-Known Member

    I don't know about trading a 401K at TDA (could be, I just have not looked). However, I know you can trade IRA's and joint accounts, etc. You need to get the owner of the account to sign some forms with TDA and link it to your accounts, and should be good to go. I'm doing it for a few relatives and the setup was easy.
    I seem to recall two forms needed: I think one is a "Trading Authorization form"
    You can call your TDA broker to get the proper info, incase I missed something.

    "https://www.tdameritrade.com/retail-en_us/resources/pdf/TDA073.pdf"
     
  4. Boomer34

    Boomer34 Well-Known Member

    Thanks!
     
  5. Bryan Doyle

    Bryan Doyle Well-Known Member

    If you link accounts on TD Ameritrade could your linked relatives get access to each others accounts (which I would not want). For example, your account is linked to person A and also to person B's account. Will A have access to B's account?
     
  6. DGH

    DGH Administrator

    No, Bryan. I have traded other people's accounts in the past with TOS. Only the designated trader sees the linked accounts, not the other way around...unless TOS has changed in the 7 years since I last did that. However, the designated trader has full access to the linked accounts, so obviously there must be a generous helping of trust between the parties. For example, I am still linked to my daughter's account, but I don't trade it anymore. I still see all her entries, NLV, etc. and, if I made a mistake and accidentally placed a trade in her account, it would go through. She wants to remain linked, though, so I am just careful.
     
  7. Bryan Doyle

    Bryan Doyle Well-Known Member

    Thanks Dan!
     
  8. Boomer34

    Boomer34 Well-Known Member

    Great info...

    A follow up question: If you have an account and say you are linked to a family members account that you trade for them...would both account be treated together for requesting lower commissions?
     
    TomKNVB likes this.
  9. garyw

    garyw Well-Known Member

    Boomer34: I got TDA to agree to use my commission schedule across all accounts I'm trading. I got them to agree to that (the local broker) before bringing the accounts over to TDA. They would agree without any issues, but once the accounts were moved and began trading, I had to "remind" them to correct the commissions on the new accounts, which they did, and reimbursed for the excess commission charges. -- No issues, after finally getting the new accounts corrected.
     
  10. DGH

    DGH Administrator

    When I was trading OPM I also had the same commission schedule across 4 different accounts in TOS. No problems.
     

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