Account opening information

[magten]

Hello everyone.
I need some feedback on the following issues.
When I start to fill in the account opening forms I am asked for loads of info. Can someone tell me what sort of answers are deemed acceptable in the US especially since I am not resident there.
I am asked Annual income. What is acceptable for a small account? I know mine but mine is complicated
Then - Net worth. What sort of amount are they looking for and why?
I am asked about Cash in banks. Will they then ask me to prove it and why should it matter?
I would really appreciate some sensible advice from US based traders who are familiar with opening accounts.
Thank you.

 

[timsk]

Hi magten,
I know where you're at - been there a few times myself. I assume (although I've never asked the question) that it's just the brokerage compliance dept' covering their rear ends in case the SEC (or whoever) comes knocking. So, if you lose all your money, house, wife etc. and decide to vent your anger in a shopping mall with an AK47, no one points a finger at the broker and asks why on earth they let you open an account. When I was with IB, I had to do a big FX trade (for reasons I won't bore you with) which meant filling out forms saying that I was an experienced FX trader (which I wasn't). So, I spoke to the friendly support staff in Switzerland saying that I was concerned as I'd have to tell a complete porky and they laughed their cotton socks off! They thought I was being very quaint and old fashioned worrying about such things. Anyway, if I were you, I'd put down the figure that you could reasonably be expected to make based on the size of your account and add that to any other income that you have. If you're married, I recommend opening a joint account with your partner, then you can include their income as well. Also, from a UK tax perspective, you can claim both your respective CGT allowances against any profits.
HTH,
Tim.

 

[Jack Hughes]

Whether you meet their requirements or not, some US brokers seem to want you to complete an 'Additional Risk Disclosure', which effectively means signing for something that isn't true.. Very odd.