Borrowing money to trade

September 4th, 2018, 04:27 PM

If you want to take a loan out for trading then I think it all depends on the type of person you are if you should/shouldn't.
There are tons of big traders who sucked ass for years and were loaned money and eventually turned it all around and could repay people and could provided for him/her... now is this you? Do you honestly think you have what it takes to take someone else's money and turn it in whatever you are trying to do.... now if you really believe that it is you then go ahead BUT don't be surprised of the added stress and whoever loans you the money to be asking whats going on with there capital. Is it something I would do? Not at all.. it sounds great and all and I'm sure I'd be able to b/e non the less but I don't want to deal with other people so I stick to my own cash and If I wanted to traded OPM I would look into TST or something similar or try the SMB Capital tryout... ( might try the SMB route as Mike Bellafiore sounds like a great guy to work for)

-P

January 1st, 2023, 10:06 AM

Is Interest on the borrowed money for trading futures tax deductible?

January 1st, 2023, 10:21 AM

Not a tax professional but I believe the answer to that is yes if your qualify for trader tax status (as its then a business expense) and no/maybe if you don't (as its then an investment expense). I believe (again not a tax professional) the deduction as a investment expense is capped at the amount of other investment (non-capital gains) income you have. Which for futures would be zero, but if you have bonds, or stock dividends it may offset some of that income.

Borrowing money to trade

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Borrowing money to trade