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All about ETFs / Foreign Brokers, Exchange traded funds
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ChAOoz
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Nov 2 2014, 12:59 PM
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Im using cimb as they are able to trade on nysearca. The problem is im not sure what to do on the taxation side.
Im assuming that dividend gain is 30% while capital gain is not taxable right ? What pitfall in taxation should i look into ? Is the tax avoidable ?
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ChAOoz
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Nov 2 2014, 08:44 PM
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QUOTE(rjb123 @ Nov 2 2014, 05:19 PM) As long as you supplied W8-BEN you won't get taxed on capital gains, but the withholding tax of 30% on dividends will still apply. On ETFs the only way around this is to buy ETFs from other countries (Ie SG, HK, UK (not UK domiciled though - they charge stamp duty!)) If im not wrong, i trade under CIMB they serve as intermediary as well as act as broker for us to trade in US exchange. In this case should i still need the W8-BEN ? So far my withdrawal of ETF with them, they did not required me to provide any tax filling, however im not sure on the charges incur during the withdrawal process, might need to re-look into that.
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ChAOoz
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Nov 3 2014, 09:40 AM
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QUOTE(MNet @ Nov 2 2014, 10:14 PM) How is the trade commission fee trade via CIMB? Its 0.42% per trade or min of 25usd
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ChAOoz
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Nov 4 2014, 03:01 AM
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One thing i like about etfs is that it allow you to bet on certain macro trend without too high of an exposure to certain stock and also of its low fees of course.
One thing to be careful about etfs is that always choose those that has high activity / volume else they might just close the fund halfway through
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