Topstep's Nick Dolby (Social Media and Community Coordinator) - Ask me Anything (AMA) - futures io
futures io



Topstep's Nick Dolby (Social Media and Community Coordinator) - Ask me Anything (AMA)


Discussion in Trading Reviews and Vendors

Updated
      Top Posters
    1. looks_one Topstep with 251 posts (605 thanks)
    2. looks_two bobwest with 116 posts (293 thanks)
    3. looks_3 Big Mike with 48 posts (165 thanks)
    4. looks_4 emini2000 with 36 posts (16 thanks)
      Best Posters
    1. looks_one Big Mike with 3.4 thanks per post
    2. looks_two DarkPoolTrading with 2.8 thanks per post
    3. looks_3 bobwest with 2.5 thanks per post
    4. looks_4 Topstep with 2.4 thanks per post
    1. trending_up 374,712 views
    2. thumb_up 2,088 thanks given
    3. group 385 followers
    1. forum 1,268 posts
    2. attach_file 44 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 150,000 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
 

Topstep's Nick Dolby (Social Media and Community Coordinator) - Ask me Anything (AMA)

(login for full post details)
  #351 (permalink)
TraderJim618
Falls Church, VA
 
 
Posts: 25 since Oct 2013
Thanks: 6 given, 25 received

Hi Michael (@ TopStep) ... I am a multi-instrument quant trader, trading: the indicies, metals, energies, grains, and currency futures. Quite some time ago, I inquired about a combine, and discovered that a combine account would be required to be traded as a 'professional account'. Therefore I would be responsible for paying all of the related monthly exchange fees with both a combine, and funded account. Is that correct? Off the top of my head, those exchange fees would amount to somewhere around $500-600/month. If that is the case, isn't there some type of work-around you folks could arrange?

Thanks in advance,

Jim

Reply With Quote

Can you help answer these questions
from other members on futures io?
Order Flow Volume Profile POC parameters in Ninjatrder
NinjaTrader
Hey! Is there a way to change the date and symbol on a c …
EasyLanguage Programming
Moving Average Price Scan
ThinkOrSwim
NT8 - Footprint Chart adding on code
NinjaTrader
NT8 Batch load strategies from xml
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Spoo-nalysis ES e-mini futures S&P 500
12 thanks
Cycle Analysis... a way of looking at price action.
8 thanks
Want your NinjaTrader indicator created, free?
7 thanks
Basic Education for Beginner Trader
7 thanks
TST/OneUp/LeeLoo/Earn2Trade
4 thanks
 
(login for full post details)
  #352 (permalink)
 Scalpingtrader 
Legendary Amateur Trader
Hanover, Germany
 
Experience: Beginner
Platform: NinjaTrader
Trading: ES
 
Scalpingtrader's Avatar
 
Posts: 1,945 since Apr 2014
Thanks: 3,142 given, 5,140 received

Just because the thought crossed my mind:

a) Income from trading a funded account becomes usually tax relevant only once its deposited?
b) there is no taxation of the account balance without a deposit ie no annual capital gain tax to be paid on the balance?

I understand you can not give an official binding statement for a) cause it's probably country- and individual-dependent and you are no tax consultant. But a share of.. "experience" would be appreciated there, anyhow.

b) is pretty straightforward I guess & it shouldnt be a problem to give a statement on that.

Thanks in advance
ST

Reply With Quote
 
(login for full post details)
  #353 (permalink)
 Topstep  Topstep is an official Site Sponsor
Site Sponsor

Web: Topstep
AMA: Ask Me Anything
Webinars: Topstep Webinars
Elite offer: Click here
 
 
Topstep's Avatar
 
Posts: 279 since Feb 2013
Thanks: 73 given, 733 received



TraderJim618 View Post
Hi Michael (@ TopStep) ... I am a multi-instrument quant trader, trading: the indicies, metals, energies, grains, and currency futures. Quite some time ago, I inquired about a combine, and discovered that a combine account would be required to be traded as a 'professional account'. Therefore I would be responsible for paying all of the related monthly exchange fees with both a combine, and funded account. Is that correct? Off the top of my head, those exchange fees would amount to somewhere around $500-600/month. If that is the case, isn't there some type of work-around you folks could arrange?

Thanks in advance,

Jim

Jim- The Trading Combine has one cost which includes everything you need to showcase your trading.

Once you are at the funded level the exchange fees are passed through to the trader. Most funded traders pay no more than $85/month. Though, this does all depend on how many exchanges you want data from.

I hope that helps.

mp

If you have any questions about our products or services at Topstep (formerly TopstepTrader), please send me a Private Message or use the FIO "Ask Me Anything" thread.
Follow me on Twitter Reply With Quote
The following user says Thank You to Topstep for this post:
 
(login for full post details)
  #354 (permalink)
 Topstep  Topstep is an official Site Sponsor
Site Sponsor

Web: Topstep
AMA: Ask Me Anything
Webinars: Topstep Webinars
Elite offer: Click here
 
 
Topstep's Avatar
 
Posts: 279 since Feb 2013
Thanks: 73 given, 733 received


Scalpingtrader View Post
Just because the thought crossed my mind:

a) Income from trading a funded account becomes usually tax relevant only once its deposited?
b) there is no taxation of the account balance without a deposit ie no annual capital gain tax to be paid on the balance?

I understand you can not give an official binding statement for a) cause it's probably country- and individual-dependent and you are no tax consultant. But a share of.. "experience" would be appreciated there, anyhow.

b) is pretty straightforward I guess & it shouldnt be a problem to give a statement on that.

Thanks in advance
ST

Scalpingtrader- Since the trader is treated and considered an independent contractor, they are taxed on the money they receive from their equity partner. Money received would be withdraw requests.

That is the best I can answer tax related questions. I would seek a professional tax advisor if you have further questions.

mp

If you have any questions about our products or services at Topstep (formerly TopstepTrader), please send me a Private Message or use the FIO "Ask Me Anything" thread.
Follow me on Twitter Reply With Quote
The following 4 users say Thank You to Topstep for this post:
 
(login for full post details)
  #355 (permalink)
 Scalpingtrader 
Legendary Amateur Trader
Hanover, Germany
 
Experience: Beginner
Platform: NinjaTrader
Trading: ES
 
Scalpingtrader's Avatar
 
Posts: 1,945 since Apr 2014
Thanks: 3,142 given, 5,140 received


TopstepTrader View Post
Scalpingtrader- Since the trader is treated and considered an independent contractor, they are taxed on the money they receive from their equity partner. Money received would be withdraw requests.

That is the best I can answer tax related questions. I would seek a professional tax advisor if you have further questions.

mp

wouldn't expect more, thanks

Reply With Quote
 
(login for full post details)
  #356 (permalink)
 PK007 
South Africa
 
Experience: Intermediate
Platform: Tastyworks, Ninjatrader
Broker: Tastyworks, IB, Ninja
Trading: Stocks, Options and Futures
 
Posts: 64 since Mar 2013
Thanks: 34 given, 121 received


TopstepTrader View Post
Scalpingtrader- Since the trader is treated and considered an independent contractor, they are taxed on the money they receive from their equity partner. Money received would be withdraw requests.
mp

I was also wondering about this. So, in other words, if a trader doesn't take any withdrawals in the first few years and just build equity, he/she won't pay any tax during that period? Only the withdrawal is seen as income in the hands of the trader not the profits made in the trading account?

I asked my accountant, but he wasn't sure, so I guess I need to change accountants!

Reply With Quote
 
(login for full post details)
  #357 (permalink)
 tturner86 
Portland, Oregon
 
Experience: Intermediate
Platform: F-16CM-40
Trading: GBU-39
 
tturner86's Avatar
 
Posts: 6,184 since Sep 2013
Thanks: 10,459 given, 12,665 received


PK007 View Post
I was also wondering about this. So, in other words, if a trader doesn't take any withdrawals in the first few years and just build equity, he/she won't pay any tax during that period? Only the withdrawal is seen as income in the hands of the trader not the profits made in the trading account?

I asked my accountant, but he wasn't sure, so I guess I need to change accountants!

What matters is if your name is on the account. If it is then you should be liable for profits. If not then you are liable as a contractor when they 'pay' you.

Visit my futures io Trade Journal Reply With Quote
The following 2 users say Thank You to tturner86 for this post:
 
(login for full post details)
  #358 (permalink)
 bobwest 
Site Moderator
Sarasota FL
 
Experience: Advanced
Platform: Sierra Chart
Trading: ES, YM
 
bobwest's Avatar
 
Posts: 7,362 since Jan 2013
Thanks: 53,921 given, 24,496 received


TopstepTrader View Post
Scalpingtrader- Since the trader is treated and considered an independent contractor, they are taxed on the money they receive from their equity partner. Money received would be withdraw requests.

That is the best I can answer tax related questions. I would seek a professional tax advisor if you have further questions.

mp


PK007 View Post
I was also wondering about this. So, in other words, if a trader doesn't take any withdrawals in the first few years and just build equity, he/she won't pay any tax during that period? Only the withdrawal is seen as income in the hands of the trader not the profits made in the trading account?

I asked my accountant, but he wasn't sure, so I guess I need to change accountants!

I am definitely not an accountant, or even someone very knowledgeable in taxes or accounting, so anyone who would take my ideas on the subject as good advice would have to be crazy.

That said, I have worked as an independent contractor over several years. In the US, which is all I know, a contractor will receive a Form 1099 at the end of the year from whomever he/she did work for. This is also sent to the IRS as a report of your earnings. Now, I was not getting paid for trading; I was a contract computer programmer. But as a contractor, I got paid when (and if) they finally cut a check to pay the invoice I sent them.

No matter how much work I had done, or what I had billed them for, it wasn't my money until they paid it out. That's when I had a tax liability. Figure that you're in business for yourself, and you don't have any income in your business until you get paid for your goods or services.

Does this translate well to the TsT trader's situation? Well, ahem, "seek a professional tax advisor"....

Bob.

Reply With Quote
The following user says Thank You to bobwest for this post:
 
(login for full post details)
  #359 (permalink)
 bobwest 
Site Moderator
Sarasota FL
 
Experience: Advanced
Platform: Sierra Chart
Trading: ES, YM
 
bobwest's Avatar
 
Posts: 7,362 since Jan 2013
Thanks: 53,921 given, 24,496 received


tturner86 View Post
What matters is if your name is on the account. If it is then you should be liable for profits. If not then you are liable as a contractor when they 'pay' you.

Just saw that you answered the question in a much shorter way than I did.

Bob.

Reply With Quote
The following user says Thank You to bobwest for this post:
 
(login for full post details)
  #360 (permalink)
 PK007 
South Africa
 
Experience: Intermediate
Platform: Tastyworks, Ninjatrader
Broker: Tastyworks, IB, Ninja
Trading: Stocks, Options and Futures
 
Posts: 64 since Mar 2013
Thanks: 34 given, 121 received



tturner86 View Post
What matters is if your name is on the account. If it is then you should be liable for profits. If not then you are liable as a contractor when they 'pay' you.

For me, the issue is on the remaining equity in the account. I don't mind paying the taxman what he deserves to get. But, if you can (legally) delay paying taxes, it gives you more time to increase the equity in your account, and therefore higher possible income in the future.

The issue is explaned as follows: If you make $100,000 as an example for a period, your share is 80% (just to keep it simple, I'll use 80%, but in fact you start at 60% and work your way up to 80%). If you then have to pay 30% tax on $80,000, you will have to withdraw $24,000 from the account. According to the TST rules, if you withdraw $24,000, TST will also withdraw the same ammount (is this correct Michael?). In this case, their share is limited to $20,000.

Which means, your account balance will reduce to $56,000 ($100,000 - $24,000 - $20,000 = $56,000). Now, does that mean your lot size will also have to be reduced by 44%? Since the margin available in the account has reduced?
If this is the case, it will take considerably longer to build equity, if you have to withdraw that much every few months.

Reply With Quote


futures io Trading Community Trading Reviews and Vendors > Topstep's Nick Dolby (Social Media and Community Coordinator) - Ask me Anything (AMA)


Last Updated on April 12, 2022


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
     



Copyright © 2022 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