How to Register As a Sole Trader Online
Trading stock online can be very profitable. Day traders follow the markets minute by minute to stay abreast of developments and place trades to profit from them. All traders must place their trades through a licensed brokerage firm. Some people prefer to create a separate legal entity to trade their investments through, so they can shift the taxes assessed on their gains to a separate entity. For smaller traders, it's simpler to open an account in your own name.
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Instructions
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Pick an online broker from listings on investment websites such as Investorguide.com or Tradewiser.com. There are several online brokers that provide comprehensive research and trading tools at reasonable prices. Evaluate the commissions charged, the quality and timeliness of the research provided and the level of tech and customer support.
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Complete the online application. List yours as the only name on the account and check "sole owner" or "individual" as the account type.
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Submit the application to your broker and wait for your account to be activated. This should take no longer than 24 hours. Check that your name and Social Security number are listed correctly on your account.
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Add an interested party if you want someone else to be able to monitor your account and receive statements on it, or fill out another form to designate trading authority to someone else. This allows the designee to make trades through your account and on your behalf, without giving the person access to your funds.
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Tips & Warnings
Report all aggregate gains and losses from trading on your 1040. They will increase or decrease your income accordingly.
