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Entity Trading Account Definition and Functions

April 7, 2021

What Is an Entity Trading Account?

An entity trading account is a dedicated account type belonging to a legal entity such as a corporation or limited partnership. There are certain advantages to entity trading accounts over individual trading accounts, such as tax deductions and certainty in tax law.

Understanding Entity Trading Accounts

An entity trading account needs one or more persons with authority to trade in the account. Such persons should be competent and honest traders in order to avoid losses in the account arising from poor trading decisions or unscrupulous behavior.

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