When setting up a new account with a broker can you use an alias?

[sopodo]

Hey Guys,

I was having a discussion with someone the other day and they said some traders use like a fake identity when setting up their trading accounts, for tax reasons. So they can avoid it. If they are like offshore. They don't want the broker to know about their off shore bank.

So I got some questions that I hope you can please answer:

Can you use a fake name?

Or to add to the above, can you use a company that setups the brokerage account on your behalf and omits your name from the brokers records. I thought I read there is a completely legal service like this where a company does it for you for a fee, is this true?

If I was to have an offshore bank account, would the broker need to know the name of the bank? including your account details for sending say a cheque to you?

To add to the above, I hear this is risky as if the broker knew the offshore bank then it would be on their records when it comes to them filing their tax return each year and something may come off this and the tax man in the country you reside in may learn of your off shore bank account and then you would be liable to having to pay tax on your earnings. Is this true?

Sorry for all the questions but I really do hope you can please answer them

Many thanks in advance

 

[bangkoker]

It sounds dodgy. In the Uk (not sure where you are based) there are a raft on anti-moneylaudering laws and therefore true identity is going to be rather important:whistling.

I get the impression that is fairly global now, hence the US stopping online poker, largely due to the 'safe harbour' act (or something similar sounding) which was supposedly to clamp down on the transfer of money (and therefore anti-terror,organised crime,money laundering).

I don't know anymore than that but I imagine when you have to electronically sign an agreement, you are agreeing not to make up details and I am pretty sure there would be withholding of funds and all sorts of difficulties if it transpired. Plus if it is for tax avoidance purposes then obviously that is a fairly big issue also.

Good luck

 

[DionysusToast]

The person you were having a discussion with is an idiot.

Using a false name is fraud. Anyone that is offshore and therefore not liable for taxes will be able to use their own name.

I would suggest upping the quality of the people you have trading discussions with.

 

[tomorton]

I suspect that in many jurisdictions you can open a financial account of any kind which has another name, but that you cannot open that account without using your real name. e.g. If I am John Smith, I can open an account and ask the organisation bank / broker etc. to give it another name, such as Fred Bloggs. But what I cannot do is pretend to the firm that I am Fred Bloggs and want an account in my own name.

 

[sopodo]

Guys, many thanks for all your replies

Lot's of useful information which I will take on board.