Bank account - futures io
futures io



Bank account


Discussion in Psychology and Money Management

Updated
      Top Posters
    1. looks_one SMCJB with 6 posts (20 thanks)
    2. looks_two vmodus with 6 posts (11 thanks)
    3. looks_3 Tyro with 3 posts (4 thanks)
    4. looks_4 bobwest with 2 posts (7 thanks)
      Best Posters
    1. looks_one bobwest with 3.5 thanks per post
    2. looks_two SMCJB with 3.3 thanks per post
    3. looks_3 vmodus with 1.8 thanks per post
    4. looks_4 Tyro with 1.3 thanks per post
    1. trending_up 1,273 views
    2. thumb_up 47 thanks given
    3. group 7 followers
    1. forum 18 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Bank account

(login for full post details)
  #11 (permalink)
 AllSeeker 
Legendary Pratik_4Clover
Mumbai, India
 
Experience: Beginner
Platform: TradingView & ZerodhaKite
Trading: Crude, NIFTY, BANKNIFTY
 
AllSeeker's Avatar
 
Posts: 1,090 since Jan 2019
Thanks: 3,619 given, 3,600 received

Excuse the silly question but what is DBA?

I'm not from US so these short-forms are little over my head.

Visit my futures io Trade Journal Reply With Quote
The following 4 users say Thank You to AllSeeker for this post:

Can you help answer these questions
from other members on futures io?
Does anyone have the code for Anchored Vwap to use in Qu …
Traders Hideout
Google Keyword Search Alerts
Traders Hideout
What are the main Eurobond futures and their respective …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Vinny E-Mini & Algobox Review TRADE ROOM
45 thanks
Design a DayTrader Scalping Order Flow Indicator
22 thanks
Daytrading.Coach Review
15 thanks
The Wheel Strategy on Options
9 thanks
AMA: FuturesTrader71 (FT71) / Morad Askar - Ask Me Anything
9 thanks
 
(login for full post details)
  #12 (permalink)
 bobwest 
Site Moderator
Sarasota FL
 
Experience: Advanced
Platform: Sierra Chart
Trading: ES, YM
 
bobwest's Avatar
 
Posts: 7,020 since Jan 2013
Thanks: 51,534 given, 23,347 received


AllSeeker View Post
Excuse the silly question but what is DBA?

I'm not from US so these short-forms are little over my head.

"Doing Business As."

People basically can have names for their business that are convenient fictional names that sound good, without incorporating or otherwise establishing a legal entity separate from themselves. Very common.

Bob.

--------------------

Edit: As @SMCJB pointed out, you can also have a corporation or an LLC (Limited Liability Corporation) that is doing business under another name using a DBA name. You just like the name better for business purposes.

When one door closes, another opens.
-- Cervantes, Don Quixote
Reply With Quote
The following 5 users say Thank You to bobwest for this post:
 
(login for full post details)
  #13 (permalink)
 vmodus 
Systematic Algo Trader
Somewhere, Delaware, USA
 
Experience: Intermediate
Platform: MultiCharts
Broker: IB
Trading: Energies, Grains, Fixed Income
 
vmodus's Avatar
 
Posts: 1,132 since Feb 2017
Thanks: 2,613 given, 2,407 received



awesomizer View Post
What's wrong with schedule cís?

People who file Schedule C's have a higher audit risk than those that do not. It is because the line between personal and business finances (such as for a sole proprietor) can get fuzzy. It is mainly because so many people try to cheat the system and it is easy to do on a Schedule C.

~vmodus

Enjoy everything!
Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to vmodus for this post:
 
(login for full post details)
  #14 (permalink)
 vmodus 
Systematic Algo Trader
Somewhere, Delaware, USA
 
Experience: Intermediate
Platform: MultiCharts
Broker: IB
Trading: Energies, Grains, Fixed Income
 
vmodus's Avatar
 
Posts: 1,132 since Feb 2017
Thanks: 2,613 given, 2,407 received


SMCJB View Post
Two problems with the LLC
1/ Most brokers require a personal guarantee which nullifies a lot of the protection that LLCs give up
2/ Trading in an entity makes you a professional in the eyes of the CME (and others?) and makes your data costs explode

1) It has been a while since we set up our LLC trading accounts, but there is more paperwork. As you state, the liability protection does not extend, but for us it was more about the accounting and taxes (and we had it anyhow). It all ends up flowing to our 1040 anyhow.

2) It has been so long we've been trading professionally that I forgot about the data costs.

CME flattened data rates across pro/non-pro, so there has been no difference in the two over the past few years, as I recall. There are some cost benefits for non-pros on other exchanges like CBOE, Eurex, and stock exchanges, but we have not participated in those markets for quite a while. One thing, like death and taxes, I know to be true: CME is gonna get paid.

I'm setting up our new accounts on IB since we had to migrate away from TradeStation Securities, but IB's market data rate pricing is structured differently.

~vmodus

Enjoy everything!
Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to vmodus for this post:
 
(login for full post details)
  #15 (permalink)
 SMCJB 
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
Posts: 4,352 since Dec 2013
Thanks: 3,691 given, 8,752 received


vmodus View Post
People who file Schedule C's have a higher audit risk than those that do not. It is because the line between personal and business finances (such as for a sole proprietor) can get fuzzy. It is mainly because so many people try to cheat the system and it is easy to do on a Schedule C.

Which is why the separate Bank Accounts is such a good idea. I also have my investments and my trading accounts at different places. That way there is no confusion as to what is considered my trading business versus my investments.

vmodus View Post
CME flattened data rates across pro/non-pro, so there has been no difference in the two over the past few years, as I recall.

A google search for CME Schedule 5 returns something that is effective Apr 2020, which I'm pretty sure is not the most recent fee schedule. It lists Pro data fees as $105/month/exchange (it's actually $110 now) vs several Non-Pro options as cheap as $3/month for all 4 exchanges.

https://www.cmegroup.com/market-data/distributor/files/mdla-cme-schedule-5-apr-2020.pdf

Reply With Quote
The following 3 users say Thank You to SMCJB for this post:
 
(login for full post details)
  #16 (permalink)
 SMCJB 
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
Posts: 4,352 since Dec 2013
Thanks: 3,691 given, 8,752 received


vmodus View Post
People who file Schedule C's have a higher audit risk than those that do not. It is because the line between personal and business finances (such as for a sole proprietor) can get fuzzy. It is mainly because so many people try to cheat the system and it is easy to do on a Schedule C.


SMCJB View Post
Which is why the separate Bank Accounts is such a good idea. I also have my investments and my trading accounts at different places. That way there is no confusion as to what is considered my trading business versus my investments.

Sorry to reply to my own post.

But to make this even clearer I also make transfers between my accounts for expenses so that there is a data trail. For example transfers from my business account to my personal account for office expenses (% of utility bills based upon square footage of my office vs entire house), second internet connection (first is not deductible as a business expense). Also transfers from my personal account to my business account for cell phone (wife and kids are on my plan, so their share of the account is not a business expense). When I buy office supplies I use the business account. etc etc. Every one documented in Quickbooks & a spreadsheet.

Just FYI I actually had my business expenses (not my revenues though!) audited several years ago. While it was annoying to have to spend the time replying, it was actually a reasonably simple process for me to respond. I already had all the data, spreadsheets and Quickbooks so it was just a case of pulling it all together. Good record keeping now can save you a lot of time in the future!

On a tangent, I'm also a believer that truly understanding all the numbers (in this case profits and expenses) gives you a better understanding of how everything really works, and from that better understanding comes a better run and more profitable business. I actually think the same applies to trading. The more you understand PnL down to the $1, the better the trader you will be.

Reply With Quote
The following 4 users say Thank You to SMCJB for this post:
 
(login for full post details)
  #17 (permalink)
 vmodus 
Systematic Algo Trader
Somewhere, Delaware, USA
 
Experience: Intermediate
Platform: MultiCharts
Broker: IB
Trading: Energies, Grains, Fixed Income
 
vmodus's Avatar
 
Posts: 1,132 since Feb 2017
Thanks: 2,613 given, 2,407 received


SMCJB View Post
Which is why the separate Bank Accounts is such a good idea. I also have my investments and my trading accounts at different places. That way there is no confusion as to what is considered my trading business versus my investments.
A google search for CME Schedule 5 returns something that is effective Apr 2020, which I'm pretty sure is not the most recent fee schedule. It lists Pro data fees as $105/month/exchange (it's actually $110 now) vs several Non-Pro options as cheap as $3/month for all 4 exchanges.

https://www.cmegroup.com/market-data/distributor/files/mdla-cme-schedule-5-apr-2020.pdf

Thanks for sharing. Are you using TS for data or another provider? I was paying $2/month each for Nymex, CBOT, and CME, delayed, on one of our accounts with TS.

~vmodus

Enjoy everything!
Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to vmodus for this post:
 
(login for full post details)
  #18 (permalink)
 vmodus 
Systematic Algo Trader
Somewhere, Delaware, USA
 
Experience: Intermediate
Platform: MultiCharts
Broker: IB
Trading: Energies, Grains, Fixed Income
 
vmodus's Avatar
 
Posts: 1,132 since Feb 2017
Thanks: 2,613 given, 2,407 received


SMCJB View Post
Sorry to reply to my own post.

But to make this even clearer I also make transfers between my accounts for expenses so that there is a data trail. For example transfers from my business account to my personal account for office expenses (% of utility bills based upon square footage of my office vs entire house), second internet connection (first is not deductible as a business expense). Also transfers from my personal account to my business account for cell phone (wife and kids are on my plan, so their share of the account is not a business expense). When I buy office supplies I use the business account. etc etc. Every one documented in Quickbooks & a spreadsheet.

Just FYI I actually had my business expenses (not my revenues though!) audited several years ago. While it was annoying to have to spend the time replying, it was actually a reasonably simple process for me to respond. I already had all the data, spreadsheets and Quickbooks so it was just a case of pulling it all together. Good record keeping now can save you a lot of time in the future!

On a tangent, I'm also a believer that truly understanding all the numbers (in this case profits and expenses) gives you a better understanding of how everything really works, and from that better understanding comes a better run and more profitable business. I actually think the same applies to trading. The more you understand PnL down to the $1, the better the trader you will be.

This is great explanation @SMCJB and the right approach regardless of structure. It mirrors how we do things, too, for the most part.

~vmodus

Enjoy everything!
Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to vmodus for this post:
 
(login for full post details)
  #19 (permalink)
 SMCJB 
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
Posts: 4,352 since Dec 2013
Thanks: 3,691 given, 8,752 received


vmodus View Post
Thanks for sharing. Are you using TS for data or another provider? I was paying $2/month each for Nymex, CBOT, and CME, delayed, on one of our accounts with TS.

I have a NYMEX seat, which makes me a member, which makes me a professional - which is a pain! One nice thing about being a member though is 'data netting'. CME Data fees are per user per device. But under 'data netting' I pay the CME directly for my data, and I then have no device restrictions. Hence I don't pay Tradestation or Trading Technologies for my CME data.

Reply With Quote
The following 3 users say Thank You to SMCJB for this post:


futures io Trading Community Psychology and Money Management > Bank account


Last Updated on August 10, 2021


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts