FatBoySlim
Expert Member
Of those who are trading on US exchanges directly (not using a broker) what platforms are you using. Been looking at some of the more popular ones but just wanted to get a consensus on the pros and cons.
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Offshore trading (US exchange)
- Thread starter FatBoySlim
- Start date
Which platforms have you been looking at that allows you to deal directly? Most I looked at goes through brokers.
Noseworthy
Expert Member
Dbxus and dbxwd
tnarg.retrac
Active Member
Wonder if there is some platform where you can invest by purchasing shares, instead of trading in them.
FatBoySlim
Expert Member
Anyone using : Ameritrade, ETrade, Tradeking, Scottrade?
FatBoySlim
Expert Member
Ok maybe bad choice of words, but you know what I mean!
You will always need to work through a broker.
Try eToro.com if you are looking at forex, indices, etf trading, etc.
As a South African citizen, I do not think it is possible to purchase and invest in shares in the US though.
Ameritrade was the best option when I investigated a few years ago. Low cost for the US (and very low cost compared with SA options), good service, willing to assist as a foreigner. Just remember that once you start buying "directly" in the US market, you will need to file tax forms in the US.
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If I am not mistaken, but perhaps you can shed some light, if you want to go through Ameritrade, you either need to be a US Citizen, if not you require some green card or even US Visa before you can make use of their services.
You definitely used to be able to - I have one. Looking at their current registration page though, it looks like it may have changed. I would try calling them directly - when I opened my account, I did end up having to do some steps offline rather than online.
FatBoySlim
Expert Member
And what about Standard Bank Webtrader?
You can try them. They are damn expensive. They also recommend that you do not trade amounts less than R100k in a single trade.
FatBoySlim
Expert Member
Holy crap!
You are not required to file tax returns in the US if you are a non-resident alien. See page 17 of:
https://www.irs.gov/pub/irs-pdf/p519.pdf
For OP, have a look at:
Interactive Brokers. Their TWS is fairly complicated but very good once you figure it out.
ThinkorSwim. Very user friendly platform.
Etrade.
Scottrade.
Lightspeed Trading.
You can not get direct access to the NASDAQ or NYSE etc unless you are a market maker like Interactive Brokers, JPM, Goldman or you pony up $1m for a NYSE seat.
You don't have to file a tax return, but you do have to file a W8 - https://www.irs.gov/pub/irs-pdf/fw8ben.pdf
Edit: I'm obviously not a lawyer / tax accountant, so seek advice from a professional and follow the law etc etc.
Edit: I'm obviously not a lawyer / tax accountant, so seek advice from a professional and follow the law etc etc.
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Correct. Your broker will take care of the 30% dividend withholding tax for you if you are invested in a dividend paying security.
FatBoySlim
Expert Member
Thanks all, some great info to work through
No-one at webtrader ever said that to me, so I will respectfully disagree with you.
Its the exchange rate that costs you a !@#$load of money, not the trades. It costs R800 to transfer 250k out of the country, excluding whatever the spread is the bank is making. YES, it is expensive but as soon as you've converted to $, EUR, GBP, your money is no longer dependent on the Rand. In Rand terms you would have gained 35% just on exchange rate, or you have lost 35% of your buying power last year (watch the prices go up in the next few months).
I am using the Standard Bank Webtrader account and am currently invested in shares (very few I might add
) in Europe and the US (Siemens, Amazon and a dividend ETF). A trade will cost you $20 (depending on which currency). So to reduce the fee impact you have to buy $2000 worth of shares to reduce it to 1%. The monthly fee is about 1$ for every $10000 invested (you don't pay a management fee on a cash balance, only on the amount of shares you own).I've been using the Webtrader account for the last 1.5 years, so ask me if you have other questions.