Operating USA Broker Accounts from the UK

donnee

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Hi,

Newbie here. I have been paper trading Option strategies with SPY on TradeMonster for a while and wanted to know how UK based investors operate a USA based broker account such as that with real funds, i.e. how would I best transfer a small starting sum to fund the account both initially and ongoing. What are the problems of tax treatment/exchange encountered and how best to keep to a minimum?

Thanks for any help.
 
why not trade through Interactive Brokers, that way you can open an account in any base currency, in your case, pounds sterling , then trade US options, your exchange will then be minimal. As for tax, u sign what I think is a w35 form which ecxludes u from US tax, UK tax will still as apply as per usual.

I used to trade thru TOS until they cancelled UK accounts, it was a bit cumbersome as I had to transfer money to their US bank which I think was citi and I noticed that my bank always screwed me on the forex transaction. So then I ended up opening an IB account and only kept the minimum in TOS, that way I could use their superior analytics and trade thru IB, but can no longer do that obviously.

Hope this helps.
 
why not trade through Interactive Brokers, that way you can open an account in any base currency, in your case, pounds sterling , then trade US options, your exchange will then be minimal.

Thank you very much...that's great advice. I already contacted Trademonster and I think I would need to fill in about 8 forms and it would take 3 weeks to set up, never mind the exchange rate business.

I will now take a good look at IB. If I can paper trade with them too that will be great. Your information on TOS prevents me wasting my time looking at them at any rate.
 
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