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Giving share trading as a form of 'gift'

Discussion in 'Other Asset Classes' started by KayTea, 28th Oct, 2015.

  1. KayTea

    KayTea Well-Known Member

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    Hi all.

    I've been involved in a discussion about the possibility of being able to set up a share trading account and putting money into it as a possible gift for someone. Basically giving them the money and tools to start trading with - but then they start doing the research and trading for themselves.

    I'm pretty sure it can't be done. I remember when I set up my trading account, I needed to have a linked transaction account, CHESS stuff etc, - that all required ID etc to get started. I can't imagine that we'd be able to set that up on someone else's behalf - especially another adult (and I understand why).

    Does anybody else know of any way we can 'surprise' someone, as a gift-type set up, or some form gift certificate etc that may go some way to giving them the ability to trade? We thought it would be a bit more interesting (and useful) than just 'cash', in order to help them start their investing journey.

    TIA,
    KayTea
     
    Perthguy likes this.
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Bare trust. The brokers would still probably require ID of the beneficiary though. you could avoid CGT on the changing of names.
     
  3. KayTea

    KayTea Well-Known Member

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    Hmmmm…… sounds like it could be worth looking into (although I have a sneaking suspicion that the cost of setting up the trust will cost more than the value of the share trading account that we were looking at establishing.:rolleyes:

    Thanks heaps, @Terry_w
     
  4. The Falcon

    The Falcon Well-Known Member

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    Hi Kaytea, why do you want them to trade shares? most will get burned, do their dough and become disillusioned with the market. I'd suggest send them to Sydney on a cheap flight for one of Peter Thornhill's 1 day seminars at the University of NSW to wet the appetite and learn a few home truths. Then they can find their own way from there, but at least they will get sensible start.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Great idea Falcon. I recommend Thornhill's book too.
     
  6. KayTea

    KayTea Well-Known Member

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    I've never heard of Peter Thornhill, @The Falcon - time to do some research and reading, by the sounds of it.