Giving share trading as a form of 'gift'

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

 

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

 

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.

Thanks heaps, @Terry_w

 

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.

 

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

 

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