I'm an international student in US on F1 Visa. I just want to know if how legal is trading stocks on my visa status.I am doing CPT and will be trading with bitcoins. I've found some posts on quora that say Trading is completely legal, but should not be on a daily basis, should be only a passive source of income. thank you!
There are no legal reasons preventing you from trading as a F-1 visa holder, as noted in this Money.SE answer.
Per this article, here are the things you need to set up an account:
What do I need to have for doing Stock trading as F1 student ?
Typically, most of the stock brokerage firms require Social Security Number (SSN) for stock trading. The reason is that, for your capital gains, it is required by IRS for tax purposes. If you work on campus, then you would already get SSN as part of the job application process…Typically, once you get the on-campus job or work authorization using CPT or OPT , you use that offer letter and take all your current documents like Passport, I-20, I-94 and apply for SSN at Social Security Administration(SSA) Office, check full details at SSA Website . SSN is typically used to report job wages by employer for tax purposes or check eligibility of benefits to IRS/Government.
I do NOT have SSN, Can I still do stock trading as F1 student ?
While many stock brokerage firms require SSN, you are not out of luck, if you do not have one…you will have to apply for an ITIN Number ( Individual Taxpayer Identification Number ) and can use the same when applying for stock brokerage account. While some of the firms accept ITIN number, it totally depends on the stock brokering firm and you need to check with the one that you are interested in.
The key thing is that you'll need either a SSN or ITIN to open a US-based brokerage account.
you dont need any permits or be inside the US to trade the exact same securities on US exchanges. you can literally move your bitcoin from a chinese exchange to us exchange in seconds.
i don't see how you can possibly run into legal issues if anyone from outside the country can trade bitcoins on an exchange inside the country without any permit. a lot of these exchanges dont ask for ID or social security number anyways. none of it is government regulated.
also trading anything is never a passive income. theres no such thing as an easy or obvious investment. there are always risks- and the actual risk is often deceivingly low