• Page :
  • 1
  • Text Only
Voting History
rated:
This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.

Member Summary
Most Recent Posts
Not specific to your immigration related issues but four or more round trip trades in 5 days can mean trouble:

http://www... (more)

Stubtify (Apr. 18, 2013 @ 1:32p) |

I am glad these folks are 'trying their luck.' They create the liquidity which keeps markets moving. If everyone were li... (more)

psychtobe (Apr. 18, 2013 @ 1:33p) |

IRS is NOT USCIS (in case you didn't know)
(in most cases) IRS doesn't care "how" you generated the income as long as you... (more)

TheTigger (Apr. 18, 2013 @ 1:44p) |

Thanks for visiting FatWallet.com. Join for free to remove this ad.

It's almost impossible for you to make money on the stock market. It takes a lot of time and patience. If you're a beginner and thinking about investing, try small amounts 2-300 and see how you do on a 2-3 month period and if you do good, which you will not(I know it's the hard cold truth, it's very, very difficult, you'll see), increase the amount as you go along. Try also to stay away from penny stocks, but what can you get with 2-300 hundred right? On number 2 I'm guessing the gov doesn't care about you, as long as you make more money they'll tax it more so..... However I don't think the online brokers will allow you to open an account without at least a green card. I don't know if your H1B is the equivalent of a gc but I doubt it.
Good luck to you.

cout said:   It's almost impossible for you to make money on the stock market. It takes a lot of time and patience. If you're a beginner and thinking about investing, try small amounts 2-300 and see how you do on a 2-3 month period and if you do good, which you will not(I know it's the hard cold truth, it's very, very difficult, you'll see), increase the amount as you go along. Try also to stay away from penny stocks, but what can you get with 2-300 hundred right? On number 2 I'm guessing the gov doesn't care about you, as long as you make more money they'll tax it more so..... However I don't think the online brokers will allow you to open an account without at least a green card. I don't know if your H1B is the equivalent of a gc but I doubt it.
Good luck to you.


Why bother with so little capital? Trading costs would be huge relative to each trade (as a %) with $300 and push one towards $0.

Jahlapenoez said:   
Why bother with so little capital? Trading costs would be huge relative to each trade (as a %) with $300 and push one towards $0.


I pay 2.50 a trade with an online broker. It was also an example. I'm not sure of the op's financial capabilities.

badboy123 said:   This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.

#2 is really a question about immigration law. I dont know the answer but doubt if it will solely depend on your investment income from stock trading exceeding your salary. For example, there is a difference between investing in some beaten down stock that does well in a year or some speculative options paying off spectacularly vs. say day trading several hours a day and making money on it over several trades that adds up to your salary over the year.

badboy123 said:   This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.


Given where you're at you would need likely 4+ years of constant education(mostly informal) + be very, very smart + at least at the very minimum 5 times your current salary in capital to even make a shot at it(and it still might not work and end up losing a ton of money).

After reading that I would guess you're probably just going to say "I'll pass then".

badboy123 said:   This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.


1. There are absolutely no restrictions on legal residents opening an brokerage account, trading stocks, and earning investment income.

2. As long as you are legitimately employed as per the terms of your visa, there are absolutely no restrictions on investing in the stock market and earning investment income. Keep in mind also that the IRS - the tax agency - is concerned with taxes only and does not involve itself in immigration matters.

Disclaimer - I'm not a lawyer. Anyone who indeed makes more money from investment income than from his job could likely afford to hire one.

Beating the market and earning a meaningful amount is a full time job. Since OP has little capital and a full time job, I suggest he work on improving the former by spending his time on the latter.

I currently invest in high dividend stocks that pay monthly as well as investing in P2P lending. If you have enough invested you can live just off the interest.

Thanks for your feedback I tend to agree with you

uutxs said:   badboy123 said:   This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.

#2 is really a question about immigration law. I dont know the answer but doubt if it will solely depend on your investment income from stock trading exceeding your salary. For example, there is a difference between investing in some beaten down stock that does well in a year or some speculative options paying off spectacularly vs. say day trading several hours a day and making money on it over several trades that adds up to your salary over the year.


I could not find any official publication which says if you do day trading or multiple trades per year it is a problem compared to few trades only. May be you can direct me to some legit source

Kanosh said:   badboy123 said:   This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.


1. There are absolutely no restrictions on legal residents opening an brokerage account, trading stocks, and earning investment income.

2. As long as you are legitimately employed as per the terms of your visa, there are absolutely no restrictions on investing in the stock market and earning investment income. Keep in mind also that the IRS - the tax agency - is concerned with taxes only and does not involve itself in immigration matters.

Disclaimer - I'm not a lawyer. Anyone who indeed makes more money from investment income than from his job could likely afford to hire one.


Thanks for your feedback I tend to agree with you but I got conflicting opinions from my friends that is why checking with this forum

elmerr2k said:   I currently invest in high dividend stocks that pay monthly as well as investing in P2P lending. If you have enough invested you can live just off the interest.

Very true

cout said:   It's almost impossible for you to make money on the stock market. It takes a lot of time and patience. If you're a beginner and thinking about investing, try small amounts 2-300 and see how you do on a 2-3 month period and if you do good, which you will not(I know it's the hard cold truth, it's very, very difficult, you'll see), increase the amount as you go along. Try also to stay away from penny stocks, but what can you get with 2-300 hundred right? On number 2 I'm guessing the gov doesn't care about you, as long as you make more money they'll tax it more so..... However I don't think the online brokers will allow you to open an account without at least a green card. I don't know if your H1B is the equivalent of a gc but I doubt it.
Good luck to you.


I appreciate your feedback and totally understand the risk with stock market. This question is what if scenario after that. Can you direct me to the source for green card and trading account claim?

Kanosh said:   badboy123 said:   This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.


1. There are absolutely no restrictions on legal residents opening an brokerage account, trading stocks, and earning investment income.

2. As long as you are legitimately employed as per the terms of your visa, there are absolutely no restrictions on investing in the stock market and earning investment income. Keep in mind also that the IRS - the tax agency - is concerned with taxes only and does not involve itself in immigration matters.

Disclaimer - I'm not a lawyer. Anyone who indeed makes more money from investment income than from his job could likely afford to hire one.


+1.. I made $3000 with my 25 k capital so far this yr..you are good as long as you pay taxes on CAP GAINS..

I would learn the tricks of the trade before diving in to the ocean full of sharks

badboy123 said:   uutxs said:   badboy123 said:   This is not really a right forum to open up this discussion but I think people here are very experienced and I am just open to knowing what people think or if they have any experience.
Last weekend couple of my friends were chatting about investing in stocks and following questions came up:
1. We are on H1B visa, so can investing income(from stock trading) exceed (that is everybody's dream..right?) the employer salary
2. If yes, will this be considered an active investing and will affect the status in the states? (tried to google active vs passive but it is very vague and very few official information)

Let me know what you guys think.

#2 is really a question about immigration law. I dont know the answer but doubt if it will solely depend on your investment income from stock trading exceeding your salary. For example, there is a difference between investing in some beaten down stock that does well in a year or some speculative options paying off spectacularly vs. say day trading several hours a day and making money on it over several trades that adds up to your salary over the year.


I could not find any official publication which says if you do day trading or multiple trades per year it is a problem compared to few trades only. May be you can direct me to some legit source

That is exactly my point. There is unlikely going to be something clear cut. It is going to be an application of immigration law as to whether you complied with the specifics of the H1B status. This is a question for an immigration lawyer and it has nothing to do with the IRS (as long as you report the gains/losses and pay taxes). IANAL.

mgmn said: .. I made $3000 with my 25 k capital so far this yr.

AVG S&P fund up over 11% YTD.

It's a good way to turn $100k into $1k.

If you still want to play the market, play with paper money or virtual market first. Go to optionshouse.com and and there's an option for virtual trading.

If you don't know much about the market and you still want to be in it, I'd suggest an S&P fund. Low fees and low maintenance.

The worst thing that can happen to a trader is to get a few right then think they know enough to make a go at it. Beyond fundamental and technical understanding/discipline you have to have mastery of best entry time, position amount and duration of hold. It takes years to refine systems that might give you a 5-10% edge and that can be all wasted if you enter at the wrong time or a fundamental factor blindsides you if your are over leveraged. So even if your virtual test trades are winners it doesn't mean you are ready to take up a career of it.

Jahlapenoez said:   cout said:   It's almost impossible for you to make money on the stock market. It takes a lot of time and patience. If you're a beginner and thinking about investing, try small amounts 2-300 and see how you do on a 2-3 month period and if you do good, which you will not(I know it's the hard cold truth, it's very, very difficult, you'll see), increase the amount as you go along. Try also to stay away from penny stocks, but what can you get with 2-300 hundred right? On number 2 I'm guessing the gov doesn't care about you, as long as you make more money they'll tax it more so..... However I don't think the online brokers will allow you to open an account without at least a green card. I don't know if your H1B is the equivalent of a gc but I doubt it.
Good luck to you.


Why bother with so little capital? Trading costs would be huge relative to each trade (as a %) with $300 and push one towards $0.


You'll make more realistic decisions if you use your real money vs virtual money and $300 is plenty to see if you are any good at stock trading or not. That figure isn't meant to make money, it is used to help you understand how the market works and if you can actually make profitable stock trades. Whether you are up 20% on $300 or $3,000 or $30,000 to get started, if you actually are profitable, then you add more money, but knowing most people will lose all of their seed money, it's a good safe place to start. I started out just making $50-$100 trades for my first year before adding more capital and I learned a TON.

robby69 said:   mgmn said: .. I made $3000 with my 25 k capital so far this yr.

AVG S&P fund up over 11% YTD.


Configurations, you've done...average. 12% YTD isn't really all that great considering the quarter we've just had...

Not specific to your immigration related issues but four or more round trip trades in 5 days can mean trouble:

http://www.sec.gov/investor/alerts/daytrading.pdf

http://www.sec.gov/investor/alerts/cashaccounts.pdf

Bottom line: you're not going to day trade with under $25k

I am glad these folks are 'trying their luck.' They create the liquidity which keeps markets moving. If everyone were like me, volume on the NYSE would be zero shares daily and who knows what we'd have?

IRS is NOT USCIS (in case you didn't know)
(in most cases) IRS doesn't care "how" you generated the income as long as you pay your taxes. Example: prostitution is illegal in most states. Yet if someone were to declare their earnings from prostitution and pay taxes, IRS will take the money and likely not report to local/other authority. There are other examples of illegal activity where the person(s) got nabbed by IRS for tax evasion (and not by state/local authorities for illegal activity).

So if your trading earnings are greater than salary, go for it - just be sure to pay taxes.
USCIS is interested in knowing that (a)you paid all your taxes and (b) you did not engage in any illegal activity.


(All Standard disclaimers apply: I am not a lawyer or a tax advisor and I am not offering legal or tax advise, just my opinion)



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014

It's time for an upgrade!

After a decade on our current platform, we're upgrading our plumbing. The site will be down for a few hours starting at 10PM CST tonight.

At FatWallet we strive to bring you the best coupons, deals and Cash Back. So please come back and check us out.