US STOCK DAY TRADING NEED LICENSE?

Hey guys,

i am learning day trading in US stocks. I want to open a small singapore pte ltd company and trade under that company to keep my expenses/income/tax managed,etc.

Do i need any business license either in Singapore or the US if i were to trade for my own company using my own funds.

To be clear i will not be borrowing any funds or having any clients. Just pure day trade like a personal trader.

OR should i rather trade like a personal trader and register as a sole proprietor

Any insight would be appreciated. thanks.

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Kok Weng

20 Apr 2022

If I am not mistaken, day trade US stocks require you to maintain at least US$25,000 in your trading a/c.

The Financial Industry Regulatory Authority (FINRA) in the U.S. set the "pattern day trader" rule, which states that you're a pattern day trader if you make four or more day trades in a five-day period in your margin account, and those trades are more than 6% of your total margin trading activity during that time. (Day trading is opening and closing a position within the same day.)

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Kok Weng

12 Apr 2022

From income tax point of view, if this company main activity is to trade stocks, this can become its sole business activity. Normally, gains from stock trading is capital gains that are not subject to income tax. However, business income is subject to tax. I think to avoid hassle, just trade in your personal capacity instead of a company.

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Jessica

09 Apr 2022

Nope you don't need to....

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