Hello, I was looking for a definite answer on this topic. My wife’s brother (who is in the Philippines) was interested in investing in stocks by wiring money to my wife and I(in Connecticut), and having us investing that money into the stocks he’s interesting in, no trading whatsoever. First off, is this entirely legal to do? And if not, what proper steps would I need to take to be able to carry out this task. The amount he is interesting in investing is around $500-$1000.
I would reach out to one of the brokerages, Etrade, Ameritrade, Schwab etc. to ask them about your situation. Surely your brother in law can own US stocks but he might be subjected to more paperwork and red tapes than US citizens. Since the amount is so small, you could just accept it like a form of gift and invest it yourself on his behalf. Any capital gain tax amount you incur from this investment you can withhold from the gains. That's the simplest way IMO.
Good Day, Can I invest money on behalf of someone else? How can I invest money in other people? Answers are highly appreciated
You can by having them open an account in their name and you manage the account for them, like making the decision of what to invest in.
