Trading on US markets from the UK

[sultanoflondon]

Hi all,

I am based in the UK and hope to trade on US markets.

From what I understand, I am subject to the same fees and commissions as American citizens and I can open a trade account with most brokers (obviously only those who support international accounts), wire funds into it from my UK bank account and then trade in dollars.

Is this correct? Am I missing something here? Can someone who trades in the US from abroad confirm or deny this?

Thank you!

 

[malaguti]

Hi all,

I am based in the UK and hope to trade on US markets.

From what I understand, I am subject to the same fees and commissions as American citizens and I can open a trade account with most brokers (obviously only those who support international accounts), wire funds into it from my UK bank account and then trade in dollars.

Is this correct? Am I missing something here? Can someone who trades in the US from abroad confirm or deny this?

Thank you!

almost any broker in the UK will allow you to trade US stocks, and also yes US brokers. depending on the broker, you can wire GBP and they will handle all the currency conversion for you. some brokers will allow you to hold the denomination in US$
can't think why you are missing something

 

[sultanoflondon]

almost any broker in the UK will allow you to trade US stocks, and also yes US brokers. depending on the broker, you can wire GBP and they will handle all the currency conversion for you. some brokers will allow you to hold the denomination in US$
can't think why you are missing something

Thanks for your reply!

I was asking because I have heard that I would have to employ a bank to 'hold' my US securities because I am not an American? But I am not sure as to why that would be required to be honest.

 

[malaguti]

Thanks for your reply!

I was asking because I have heard that I would have to employ a bank to 'hold' my US securities because I am not an American? But I am not sure as to why that would be required to be honest.

first off, your securities are not actually yours they are the brokers. It would be wrong to say all brokers, as I don't trade with all of them, but the vast majority will treat you as a nominee, so the shares are never actually in your name. therefore nothing is actually held by you

what might be held back is something called withholding tax, which is the US rate of tax to offset any potential gains you may have. to get around this when you register with a broker and let them know you are a UK citizen and therefore not subject to the witholding tax regulation you will need to complete a W-8BEN

hope this helps

 

[sultanoflondon]

first off, your securities are not actually yours they are the brokers. It would be wrong to say all brokers, as I don't trade with all of them, but the vast majority will treat you as a nominee, so the shares are never actually in your name. therefore nothing is actually held by you

what might be held back is something called withholding tax, which is the US rate of tax to offset any potential gains you may have. to get around this when you register with a broker and let them know you are a UK citizen and therefore not subject to the witholding tax regulation you will need to complete a W-8BEN

hope this helps

Great thank you for this!