NASDAQ trading in the UK

[kbharj]

I'm thinking about trading on the NASDAQ. Therefore I'm looking for any advice anyone has with regards to trading the NASDAQ from the UK?

What are your views, opinions and experiences?

Can you recommend any providers of direct access?

What are the legal and tax implications of me trading the NASDAQ while a UK resident?

Any other advice you can offer would be appreciated.

Regards
Kam Bharj

 

[FTSE Beater]

Hi Kam

Welcome to T2W

The Nasdaq in my view is the best share trading market there is I use www.interactivebrokers.co.uk as my broker. Most direct access traders here use them as well. They are a cheap broker with a good trading platform

With regards tax, as far as I'm aware there is no difference in Tax law, the UK law still applies. If you make more than the capital gains tax level (about £7000) then you have to declare it to the inland revenue.

Hope that helps

 

[Trader333]

Also check these threads as there are quite a few traders of Nasdaq stocks from the UK.


Paul


http://www.trade2win.co.uk/boards/forumdisplay.php?s=&forumid=68

 

[kbharj]

Cheers - I will look into both

Regards
Kam Bharj

 

[weddie]

I'm considering opening a interactive brokers account in UK, but am
resident in Switzerland (the commissions are enormous here compared to IB). Anyone know whether the UK tax law applies
or the Swiss tax law (trading on US markets), with respect to
capital gains, etc.

 

[Trader333]

You will be taxed based on your country of domicile. If you live in Switzerland then you come under their tax laws but you will need to inform IB about this.


Paul

 

[darrren]

In all the threads I read where tax is mentioned, no one refers to trading within an ISA wrapper - is this because no one is making more than 7K pa trading?

Why is no one interested in saving 40% on each trade while at the same time worrying about making a few more points here and there?

Anyone making more than £7K care to answer this?

 

[wysinawyg]

In all the threads I read where tax is mentioned, no one refers to trading within an ISA wrapper - is this because no one is making more than 7K pa trading?

Why is no one interested in saving 40% on each trade while at the same time worrying about making a few more points here and there?

Anyone making more than £7K care to answer this?

I'm definitely not making over £7k but FWIW I reckon traders here can be broken down to a few categories:

1) Those trading actual UK shares - here you're barking IMO if you're doing it outside a SIPP/PEP/ISA as the only reason to trade the shares rather than the CFDs is tiny bit lower trade costs which are likely to be outweighed by Stamp Duty unless you get a tax exemption.

2) Those trading futures/currency - which can't go in an ISA.

3) Those trading with spreadbets/CFDs - which is often where they have small capital so would get gouged at £10 per trade, in any case spreadbets are tax free.

4) Those trading actual US shares - who I think are mostly day traders. They are likely to have $25k and so would need multiple ISA allowances saved in advance or else to be splitting trading. You're also stopping yourself from going short and paying a lot more in the way of costs through spreads and basic fees.

wysi

 

[Trader333]

I looked into this and found that it wasnt really feasible as a day trader of US stocks. It can be done but it gets complicated and I would have to use different brokers etc


Paul

 

[weddie]

You will be taxed based on your country of domicile. If you live in Switzerland then you come under their tax laws but you will need to inform IB about this.

Thanks, just what I wanted to know.

 

[jitasb]

To those guys who trade US stocks....

Is it best to use Direct Access (e.g. IB)...or do some of you use for example CFDs with etrade where comission is $14.95.

Previously I've thought that I would use IB for direct futures access and trading (i.e. indices, comodities etc) but if I were trading individual shares then I would use CFDs (say from etrade) which would enable me to trade both US and UK stocks at reasonable commission.
(Or could use Spreadbets for the latter as well...but the spreads can be a bit large )...

Thanks in advance...

P.S If there is another thread on this topic....by all means redirect me.

 

[FTSE Beater]

Hi Jitasb

It's best to use Direct Access when ever possible, but remember you can only day trade 3 times a week unless you have over $25,000 in a trading account.

CFD's are ok, not the best, but E-Trades $14.95 commission seems a bit pricey to me. I would look at Deal4Free and compare them. I think the downside to D4F was that there is a limited number of stocks.

HTH

 

[JonnyT]

The spreads on CFDs are nothing like Direct Access, so much so that day trading them is virtually impossible...

JonnyT

 

[Newtron Bomb]

I would have to disagree

As long as you understand the mechanics of the instrument it can be done.

Day trading with SB'ing is (nearly) impossible

Direct access though every time has to be the top of the list there is no comparison

Just my tuppence worth

Regards
NB

 

[stevet]

Newtron Bomb

are you saying that there is an edge to trading cfds which is specific to cfds - so it can be worth to trade them, even with a spread which is greater than direct

or that the extra spread on cfds, over direct, can still provide a profit if you know how to trade anyway?

 

[Newtron Bomb]

I would say that my statement would be correct for anything trading.

As long as you understand the nature of the beast then it can be tamed.

Assuming you have a reliable consistant day trading system then yes in this example you can profit from day trading with a cfd.

HTH
NB

 

[boy]

Hello.

 

[Mr. Charts]

Hello boy ;-)

 

[Mr. Charts]

I agree with Newtron Bomb.
Although you can certainly trade cfds profitably, the difference with trading the same instrument with DAT and cfds is that you will make significantly more profits with the former.
I refer specifically to the US.
The UK is a different ball game with stamp duty, higher commissions etc.

 

[stevet]

Newtron Bomb

so there is no specific edge from using cfds for the US market due to some aberation in pricing between cfds and the direct market?