Brokers need personal information to comply with tax laws, anti-money laundering regulations, anti-terrorist financing requirements, record-keeping procedures, and determining suitable investments. Broker-dealers in the U.S. need a tax identification number (TIN) from their clients, which is usually a Social Security number (SSN).
Can a tax preparer keep a copy of my Social Security card?
It is not so much that a tax preparer is "allowed" to keep a copy of your SS card, but they are allowed to keep a copy of any information that you willingful provide to them when they ask you for it.
Is it safe to use brokerage companies for Social Security number?
As a result of the above mentioned government regulations, every United States brokerage company will be asking you for your Social Security Number. There is no way around it. Is it safe? If history is any guidance brokers actually do a pretty good job in keeping your personal information and money safe.
Why do stock brokers ask for personal information?
According to the Securities and Exchange Commission ( SEC ), there are three other reasons why brokers are required to ask for personal information. They are suitability, record-keeping requirements, and anti-terrorist / anti-money laundering ( AML) laws. 2
Why do I need to submit original documents to Social Security?
Prevent your wages from being posted correctly to your Social Security record, which may lower the amount of your future Social Security benefits. Cause delays when you file your taxes. You must present original documents or copies certified by the agency that issued them. We cannot accept photocopies or notarized copies.
Why does Robinhood need my Social Security card?
Not only does Robinhood require you to provide your SSN, but it may also ask you to send in a picture of your SSN card. This is done to deter identity fraud. A hacker may be able to access your SSN digitally, but it is a lot more challenging to steal the actual paper card.
Do all stock trading apps require SSN?
In general, apps that offer general guidance about investment strategies do not require a social security number. If they allow you to place trades, you will likely be required to enter a social security number. The exception to this is apps like Firstrade which allows for non-US citizens to trade.
Do brokers need your SSN?
Broker-dealers in the U.S. need a tax identification number (TIN) from their clients, which is usually a Social Security number (SSN). Non-U.S. citizens can usually use a valid passport number, an alien registration card number, or other government-issued ID numbers instead of an SSN.
Do brokers require SSN?
To own stock in a brokerage account, you are required under federal law (the Patriot Act) to provide your Social Security number. This information is used to verify your identity and prevent the bad guys from gaining access to the stock market. Every brokerage must adhere to this requirement.
Learn what documents you will need to get a Social Security Card
Submitting Documents to Social Security: Please do not mail original primary documents that should be kept secure in your possession, such as driver’s licenses, passports, or immigration documents. If you prefer, you may choose to mail us secondary evidence of identity and less sensitive material.
Original Card for a U.S. Born Adult
You must present original documents or copies certified by the agency that issued them. We cannot accept photocopies or notarized copies. All documents must be current (not expired). We cannot accept a receipt showing you applied for the document.
What original documents do I need?
We can accept only certain documents as proof of U.S. citizenship. These include a U.S. birth certificate or a U.S. passport.
Why do brokers collect personal information?
Even besides the legal requirements, brokers are advised by industry organizations like FINRA to collect your personal information because in theory this puts the broker in a better position to help, or at least not to hinder you, in reaching your financial goals. These organizations recommend brokers collect personal details, like net worth, salary, and career history, so that they don’t inadvertently recommend an investment to you that doesn’t fit the risk profile suggested by your personal situation (or at least by what they derive your personal situation to be based on these details).
Why do brokers need Robinhood?
This is very personal, why do they need this? The short answer is that all brokers (not just Robinhood) are required by the U.S. government to collect this , among other personal information, for anyone looking to open an account.
Dumbest financial move you've seen a customer do
Sold a Scat Pack challenger base model to a guy. Guy went out and put rims on it, says he spent $4,000 on the rims. He also put a bunch of other parts on the car to the tune of around $3,000. This is on top of him rolling $9k of negative equity into the loan.
Terrible Sales Manager Experience
I am in the market for a 2022 Mazda3 hatchback AWD turbo. I am pre-approved with my own bank + putting around 10k down. So my wife, 11 year old son and I went out to look at cars.
Did I deserve the hostility?
I've been in the market for a RAV4 Hybrid. I reached out to several dealerships 2 weeks ago and put my name on the waitlist for several dealerships, putting down refundable deposits for those that wanted one. One dealer actually had a silver one that would be built end of Feb/beginning of Mar and would be delivered beginning of April.
My car was listed for Auction without my knowledge
I have an Audi and the lease was ending in December. I wasn't sure if I was going to buy it or return it, so I went ahead with the end of lease inspection. Leasing company uses a service called AIM who came to my house at a scheduled time. In the end I decided to buy it and completed the lease buyout at my dealer.
Can Your Employer Legally Demand a Copy of Your Social Security Card
My question involves labor and employment law for the state of: Illinois My daughter, who is 15, applied to work at a local grocery chain. Her employer requires her to provide to them a copy of her Social Security card as a precondition of employment per their "corporate policy".
Re: Can Employer Legally Demand a Copy of the Ssn Card
If she didn’t use it as a form of Id on the i9 I know of no reason they would need it but i don’t know of a law that prevents them from demanding it either. Is there some reason your daughter will not produce he ss card?
Re: Can Employer Legally Demand a Copy of the Ssn Card
Her employer requires her to provide to them a copy of her Social Security card as a precondition of employment per their "corporate policy".
Re: Can Employer Legally Demand a Copy of the Ssn Card
It is legal for them to request it. It is legal for them to make employment contingent on it. The law does not make it mandatory but the employer may. I think that sums it up.
Re: Can Employer Legally Demand a Copy of the Ssn Card
agree with cbg -- it's actually under payroll IRS tax law that allows it, not I-9 employment authorization laws.
Re: Can Employer Legally Demand a Copy of the Ssn Card
And why wouldn't you give it. The only information on it is your name and SSN which you have already provided them.
Re: Can Employer Legally Demand a Copy of the Ssn Card
agree with cbg -- it's actually under payroll IRS tax law that allows it, not I-9 employment authorization laws.
Personal Information
- Brokers don't ask investors for their personal information to make conversation. There's a perfectly good reason behind it—they have to ask. The type of information required of a broker is spelled out in Rule 17a-3(a)(17) of the Securities Exchange Act of 1934. The rule specifically req…
Suitability
- Suitability refers to how an investor's financial situation matches the advice and recommendations of a broker. A broker must attempt to understand an investor's circumstances and preferences.3 The broker should then provide recommendations that are suitable for that person and their investment objectives. A broker who does not do that violates rules laid out by t…
Record-Keeping
- Rules set out by the SEC require brokers to maintain a current record of personal information. Note that if a client refuses to provide this data, the broker is excused from following the rule. However, the broker must be able to prove that an effort was made to obtain and document the information.3 Keep in mind that some personal information may change over time. It is the inves…
Terrorism and Money Laundering
- Finally, the broker must provide client information to meet anti-money laundering and anti-terrorist financing requirements. The minimum requirements for this section include: 1. Name 2. Address (home or business address, not a P.O. Box) 3. TIN, such as an SSN 4. Date of birth (for a person)3 This information allows the broker to verify the client's identity. The client's personal data is cros…
Additional Information
- The Financial Industry Regulatory Authority (FINRA)has a list of other personal information a broker may ask when opening an account. Though not required, it suggests that investors pass these details on so the firm can better serve their trading and investment needs: 1. Contact person: They may ask for the name, address, and telephone number of a trusted contact person…
Online Brokerages and Trading Platforms
- Some brokerages have traditional offices, which means that investors are able to supply confidential information in person. Transferring data in person can reduce the risk of identity theft. When trading online, investors are often required to give up personal information through the trading platform or app. However, due diligenceremains crucial online. Just as with any tradi…