In answer to the question 'can' you do something, the answer is - of course - 'yes.' Your real question is 'what are the legal consequences of doing so?' First, as long as you are reporting all of the income earned from the trading, then you will not have a Federal or state income tax problem. However, is the 1099 the only income you are receiving? Are you executing the trades in their accounts? Or are you executing the trades in your own account? If the latter, then you are likely going to be viewed as taxable on all of the profits and losses.
Digital challenger bank Arival is now accepting reservations for preferred stock on SeedInvest. Arival will be a crypto-friendly bank – unlike most traditional banks in the United States which. The cryptocurrency lawyers on LawTrades can provide proactive online legal planning to keep your Bitcoin or other cryptocurrency running smoothly during potentially rocky times.
Second, of course, as indicated by the other lawyers, you have licensing issues. Since you are not licensed, you are violating state law requirements. Also, you may be guilty of a crime under state law.
Third, you may be violating Federal licensing laws. And, as one of the other lawyers indicated, if you are conducting business with people outside of California, you may be violating yet another Federal law. And there are potential Federal crimes as well.
You should immediately cease your activities and hire a competent securities lawyer.