For the many Australians who recently subscribed to Mad Hedge Fund Trader PRO, a temporary regulatory obstacle has emerged.
There are two types of trading accounts permitted by Australian financial regulators:
Cash Accounts ? opened by individuals
Regulation ?T? accounts -? opened by corporations and trusts
Reg ?T? accounts have no problems executing any of my Trade Alerts, including those for stocks, bonds, exchange trade funds, options, call spreads, and put spreads. However, regulators have recently barred Cash Accounts from trading in call spreads and put spreads.
Their logic is that individuals lack the financial sophistication to engage in these types of trades. The reality is the opposite, that they are limiting individuals to engaging in higher risk positions while banning them from the lower risk ones. Welcome to the world of financial regulation!
The easy way around this is for individuals to set up a paper corporation for the purpose of handling their trading activities. This is far easier than it first appears. My friends at Halifax Investment Services will do this for you for as little at AUS$575. One swipe of your credit card and you are in business.
The benefits of doing this are huge. You can then execute every type of trade under the sun, including all of the Mad Hedge Fund Trader?s Trade Alerts. You can also reduce your tax rate from as high as 47% that hits profits in Cash Accounts to only a mere 30%. I don?t know how people in the Land Down Under view taxation, but here in the US it is absolutely despised.
Every professional trader in Australia operates through a corporate entity, and you would be mad not to do so. If the past is any guide, long-term followers of my service all have one problem in common: they make too much money, creating unforeseen tax headaches.
There is one other way to deal with the Australian regulator?s discrimination against individual investors: wait a couple months. They have been sued by a number of individuals and organizations seeking to block this double standard. My in country tax attorneys tell me that a resolution is expected soon. Once the issue is settled, the only difference between Reg T and Cash Accounts will be the tax rate.
To learn more about the special services that Halifax Investment Services Ltd. is providing readers of the Mad Hedge Fund Trader for no extra cost, please click here at http://madhedgefundradio.com/a-special-offer-for-australian-subscribers/?
To avail yourselves of these services, please open an account with Halifax Investment Services Ltd. by clicking here at??http://madhedgefundradio.com/hisl-australia/ . There, you will be asked to complete a form with your basic information. Within a few days, you should receive a phone call from a Halifax financial advisor who has been assigned to provide you assistance.
Good Luck and good trading!
