QUOTE(TOS @ Aug 18 2019, 10:14 PM)
Ok, please check the facts below:
1. TIN is NOT the same as US Income Tax No.
2. You need a TIN when filling up the W-8BENN form, which is used to avoid paying CGT to the US since we are NRAs. (This is the form required for all of us to fill up when we decide to trade directly on the US market.)
3. You need a US Income Tax no. when filling up the 1040NR form to claim back the 30% WHT which is NOT possible for Malaysians since there is no tax treaty with the US. (So, basically the first post of the thread is wrong, for Malaysian investors, that is. It is not possible to claim back ANY portion of the 30% WHT for us NRAs without tax treaty of any kind with the US, correct?)
Please check the above 3 facts.
And so there is NO issue trading directly on NYSE, the TIN is NOT an issue at all. I just keep paying the 30% WHT to the US government while trading with my broker on TD Ameritrade. There is no worries about FATCA even though I trade with TD, as long as I don't mess up with the US gov by claiming ANY portion of the 30% WHT back.
The only concern here is claiming back ANY portion of the 30% WHT. If I do so, I mess up with the US gov because I will have a US income tax no by then and have to deal with FATCA.
If however, I choose to keep paying the 30% WHT (which means I only fill up the W-8BEN form), I will have no issues messing up with FATC/US gov etc., even though I will be required to have a TIN.
In short, no worries about trading NYSE on TD Ameritrade TOS platform,
as long as I don't claim back ANY portion of the 30% WHT.
Correct?
As for brokers' choice (if I choose not to trade with US brokers):
I am a long-term trader who wants to save on commission and looking for platforms without ongoing charges of any kind, including custody fees, inactivity fees etc.
One single trade would be 7000-10000 USD for me (of course if the commission is low enough to account for less than 1% of the trade amt, then I will go for a lower trade amount, maybe 3-5k USD)
I know IB is a stupid choice for me, and I am aware of the whitelabels. But I don't know which is good?
I am looking for investing in
USD-denominated accumulating class (so no dividend handling charges) UK/Swiss ETF (Vanguard S&P 500 UCITS or iShares S&P 500 UCITS)I know about Captrader and TradeStation. But Captrader only trades in Euro (I prefer USD shares, so that currency is my own liability) and I can't tell if Tradestation trades in LSE/SIX (can't find the market info on their official page. I only know they trade in the "US and worldwide"
https://www.tradestation.com/about/)I also looked up eToro, but they don't have accumulating class UCITS, only a distributing one. Moreoever, it is traded in GBP, not USD
https://www.etoro.com/markets/iusa.lAny good suggestion? Or I have to relax my requirement?
Thanks for the help everyone.
QUOTE(TOS @ Aug 18 2019, 10:17 PM)
As for ETF requirement,
If an accumulating class is not possible, please suggest brokers with dividend reinvestment plans but NO dividend handling charges or any kind of charges. TQ
Just keep it simple OK? TIN is your income tax no with LHDN (for us Malaysisns). US call it TIN, you can call it what you want. Is a tax no for your country. Let's say you are AU CITIZEN with income tax no of 12345678. TIN will be 12345678. Country will be Australia. Understand? That's what you fill up into WBEN8 form or whatever form asking about income tax/tax residency. That's how I fill it up. Cause the broker will not accept if I leave it empty. I filled it up, give them a copy of my tax filling with LHDN.
You don't need to fill up other forms except for WBEN8 as a NRA. No issue with trading as you won't be charged CGT. Only dividend tax. Since Malaysians can't claim anything back from US govt no need to worry.
If in the future, somehow you found a way to claim money back from US govt, then is better to get a tax advisor on what to do so that FATCA will not come after you. FATCA is designed to catch Americans and for Americans. If you are filling up the wben8 form only, don't need to bother about FATCA. Bother about how you are going to explained to LHDN if your income is not tax in a Malaysia (before you use it to buy stocks/etf from your broker. If already taxied by LHDN, then you are fined unless you under declare)
If you buy accumulating ETF, you will still be slapped with 30% tax before the divided will auto be reinvested back in. Cannot run away unless you buy from LSE.
Wrong. Captrader does not trade in Eur. You can select your base currency as USD upon creating account and you still login using Interacrive broker. Sign up part only deal with Captrader. You can buy USD ETF from LSE. You can also buy USD ETF from US stock exchange. Just make sure the ETF fund is traded in USD and make sure you have USD in your account. You will be buying and selling from inside interactive broker page. Select ETF (stock code you want, punch in how much is your price and how many units, click preview, purchase, done. You cannot buy USD denominated fund using say GBP or EUR. Tradestation here is Tradestation global. Not the normal tradestation.
I dont know why you are making it complicated. Keep it simple. Hope you understand. Avoid etoro. Is CFD broker.
If you are a trader and can generate min commision of USD10/ month use pure interactive broker. Way way cheaper as each transaction only cost a few cents. If you cannot generate that amount of commision stick with Whitelabels.
This post has been edited by Ramjade: Aug 18 2019, 11:30 PM