Please Help - Stock Trading on EAD

[diva_tocore]

Hi All,

I am currently on H4 visa and my husband on H1 visa. I also have a EAD card and SSN though currently I am not using EAD. I used to work on trading desk for a major financial broker firm in India and would like to do some stock trading as I have good experience of it in India. I was told that on H4 I can not do it as I can not have active income. Can someone please tell me if I can do stock trading using my EAD? In my research I found that when someone uses the EAD card they file I-9 form with employer to declare they are on EAD. However, if I am not working anywhere else but want to utilize EAD for stock trading if it is considered active income, how can I do it? Question is - 1.) Can I do it ? and 2.) Do I have to fill any form with broker to indicate that I have EAD?

I will really appreciate any help on this.

[pontevecchio]

Stock Trading is Stock Trading and not day Trading and never the twain shall meet. Knowing the difference what do you intend to do? Day Trading or dealing in stocks?

[diva_tocore]

I mean to say active stock trading/day trading. While generally I would make one buy and sell in a day, it probably will still counted as a day trading.

My confusion is, I know if I utilize EAD I can do it. However, I do not work for any employer right now. How can I indicate to use my EAD for day trading? Please advise.

[rickie]

May be I am going off on a tangent. But you could trade from your husband's account. That should be fine. So essentially the account will be in your husband's name, but you could be calling the shots.

[diva_tocore]

rickie: Thank you for the suggestion. However, my husband is planning to maintain H1 currently. I would prefer to use my EAD for this purpose. I know that on EAD any day trading or any active income is OK. I also know many people where one spouse is maintaining visa and another spouse would utilize EAD. But I don't know how to use my EAD for day trading, indicating that I am not using H4 for any gain in this that may be considered as active income. Is there anything like I-9 when it comes to trading where you can declare to utilize EAD?

[rickie]

Unfortunately I do not have a direct answer for your question.

However, even if you husband is on H1, he can invest in stocks. I am on H1B and I do that. And I know a tonne of people who do that.

So, if you are thinking that H1B folks cannot invest, then you do not have to worry. H1B people can invest.

Now, in particular if you are looking to be a day trader, then I am not 100% if H1B holders can do that. Also, to be flagged as a day trader, you need to execute 3 day trades (buy and sell on the same day) in a 5 business day period. Once you are flagged as a day trader, then there is no going back.

Sorry for digressing, but I hope some of it is useful.

[pontevecchio]

Please be very careful waht you wish for. You can do day trading as per the legal definition. Your Spouse cannot on H1 status. Get AP and return on AP and then you can do what you want. Fair comment. Day Trading is a very sure way to lose your shirt. Just saying.

[diva_tocore]

@rickie - Thanks. But, my husband can not do day trading on H1 as it would be considered active income and he is not supposed to have active income other than for his employer on H1. Also, to be clear on law, I would like to do that on my name only since I would be the one actually doing it. I will research more with brokers too to see how many and what volume is considered daytrade.

@pontevecchio - Thank you for your suggestions. But I am not amateur trying to do day trade :) . I have extensive experience on working on trading desk for major financial brokers and I know what I would be doing. :)

Unfortunately I still can not find any info on this :( . Can any Murthy Attorney or JoeF or any of you guys who know let me know if a person on H4 has EAD card and wants to have what would be considered as active income through day trading, can I utilize my EAD for that?

[pontevecchio]

"I have extensive experience on working on trading desk for major financial brokers"

So did all the Bankers and their Employees who led us into a Great recession. An Immigration Lawyer is of no help. Talk to a Broker asto what documentation needs to be done if you are going to do day trading in the legal sense. They may very well ask you for a significant deposit. Best of Luck.

[diva_tocore]

Originally posted by pontevecchio:

So did all the Bankers and their Employees who led us into a Great recession.

That's besides the point of my question anyway. Though, thank you for your interest in my post.

[pontevecchio]

You are welcome.

[diva_tocore]

Can any Murthy Attorney advise please?

[mech-wiz]

just be aware that you will get a 1099(tax form) from the stock broker for the stock trading. If you day trade and invest considerable money, you can consider yourself as stock trading professional (full time job and has some benefits if you have to account loss/gain on our trade) for tax purpose. You can't do that on your husband's account as his EAD is more specific to his job described on the LCA.

FYI: INS and IRS don't share information related to your tax returns, (except for what you file as a part of GC paperwork) unless there are some discrepancies in your GC paper work...there could be RFE's..which is also rare.

[danielharris]

Thanks a lot...

[This message was edited by Admin on July 27, 2011 at 07:27 AM.]

[new_bee007]

@diva_tocore It's a good question. If I understand the question You are looking to Day trade and want to file the tax as Trader(Full time for you).

As of now what I came across is you can day trade in H4 using your husband account but you cannot get your own account, day trade, and file taxes as a Full-time trader for your status but if you have EAD you can file taxes as Full-Time Trader. 

H4-EAD is as good as GC and you don't need to bound to your professional, You can be a teacher, can work in Tech, can work any place in the US. 

Once you get your SSN you can open an account with any major trading platform and day trade, remember to get enable the MARK-TO-MARKET calculation for your trades.  Note: You need to trade over 500 trade per year to qualify for the trader(there is no fixed number for the trades but mostly should be over 500 which people say and at least 1-2M in full trades account transaction).

Hope this helps. 

[guddi]

I am doing day trading on my H4 Ead but the ead is going to expire soon..i have already filed for EAD extension.Wanted to know if i can continue to trade on my expired EAD.. when its gone for renewal..or should i stop trading..and once i get the renewed EAD i can continue my trading..Thanks in Advance.