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Old 27.01.2016, 10:12
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Which broker

Hi all

As my other thread (Very long term investment for dummies) had too many topics in one, a few topics got picked up quickly and discussed at length while others were not discussed, so here is another one of these:


Which broker would use use as a non-US person

I checked IB, but the general consensus seems to be that it is for pros.
Scottrade has good reviews but needs US residency.
Schwab seems attractive (needs a min of 10k, but hey).

Does anyone have good experience/ recommendation for an online trader?
- I am NOT considering Swissquote or Postfinance as they are ridiculously expensive.
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  #2  
Old 29.01.2016, 22:49
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Re: Which broker

Why would IB be for Pros only? Just about to signup myself with them.
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Old 29.01.2016, 23:04
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Re: Which broker

IG CFDs - not so hard to use for single stock trading.

IB as a broker, also not hard to use.
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Old 30.01.2016, 21:14
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Re: Which broker

Another vote for IB. You'll need to deposit 10K if I remember correclty.
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Old 01.02.2016, 10:13
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Re: Which broker

A related question: Can someone explain what is the deal with the US estate tax?

Is this relevant for non"US-persons" as well?

Thanks
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Old 01.02.2016, 10:30
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Re: Which broker

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A related question: Can someone explain what is the deal with the US estate tax?

Is this relevant for non"US-persons" as well?

Thanks
None, in any case the starting point for filing is $5,450,000

Being British UK IHT will likely be an issue as the starting rate is so much lower.
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Old 01.02.2016, 11:06
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Re: Which broker

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None, in any case the starting point for filing is $5,450,000

Being British UK IHT will likely be an issue as the starting rate is so much lower.
I read somewhere that it is applicable already above 60k. Is that for US persons only?
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Old 01.02.2016, 11:07
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Re: Which broker

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I read somewhere that it is applicable already above 60k. Is that for US persons only?
$5,450,000 for US persons.

UK / US has an estate tax treaty http://uniset.ca/misc/us-uk1980.html
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Old 01.02.2016, 11:21
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Re: Which broker

I use ETrade and have been very happy with them. Don't know why but IB asked for an opening deposit of EUR 250,000 and would not budge so didn't bother with them.

ETrade use to offer a Visa debit card which waqs very handy, but will no longer grant this to non -US citizens. Does anyone know of any other US brokerage that will offer this service?

If you trade options and/or commodities then OptionsXpress is excellent but closer to home you have FXCM in the UK with a great platform, multi currency accounts and you can trade US stocks off their platform with ease. Also, you don't have to fill in the W-8 form, which if it lapses you'll find they take a 30% withholding tax on your sales - even if you lose money!

http://www.fxcmstocktrading.com/supp...lient-support/
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Old 01.02.2016, 11:29
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Re: Which broker

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I use ETrade and have been very happy with them. Don't know why but IB asked for an opening deposit of EUR 250,000 and would not budge so didn't bother with them.

ETrade use to offer a Visa debit card which waqs very handy, but will no longer grant this to non -US citizens. Does anyone know of any other US brokerage that will offer this service?

If you trade options and/or commodities then OptionsXpress is excellent but closer to home you have FXCM in the UK with a great platform, multi currency accounts and you can trade US stocks off their platform with ease. Also, you don't have to fill in the W-8 form, which if it lapses you'll find they take a 30% withholding tax on your sales - even if you lose money!

http://www.fxcmstocktrading.com/supp...lient-support/
Charles Schwab offers a visa card & cheque book to non residents, my credit card was renewed late 2015.

I would be amazed if you don't have to fill in a W-8BEN form, if you trade US securities.
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Old 01.02.2016, 11:32
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Re: Which broker

https://www.postfinance.ch/en/priv/p...lus/offer.html


If you have the Postfinance private account plus its much cheaper.
Was OK for me as I purchased some funds to hold for maybe 10 years.
No custody account fees and you can add units or sell units in the funds
you hold online.
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Old 01.02.2016, 11:34
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Re: Which broker

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https://www.postfinance.ch/en/priv/p...lus/offer.html


If you have the Postfinance private account plus its much cheaper.
Was OK for me as I purchased some funds to hold for maybe 10 years.
No custody account fees and you can add units or sell units in the funds
you hold online.
Very high trading fees as your fund grows, cost me several thousand to leave.
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Old 01.02.2016, 11:44
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Re: Which broker

https://www.postfinance.ch/en/priv/p...ew/detail.html

They say commission free on redemption.Obviously you will pay tax on
any income or dividends as my selections are all distribution.Then they remove
35% withholding tax if the fund is based in Switzerland.You claim the tax back via your tax return.
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Old 01.02.2016, 11:47
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Re: Which broker

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https://www.postfinance.ch/en/priv/p...ew/detail.html

They say commission free on redemption.Obviously you will pay tax on
any income or dividends as my selections are all distribution.Then they remove
35% withholding tax if the fund is based in Switzerland.You claim the tax back via your tax return.
Redemption of a fund they charged up to a 5% commission on when they sold it to you. The OP is not talking about post finance 'funds'

Stock sales are chargeable, so are transfers at 100 plus VAT for Swiss Securities & 150 plus VAT for foreign securities.
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Old 01.02.2016, 11:52
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Re: Which broker

I paid 0.5% commission on purchase of the funds up to a max of 500 chf.
On redemption(selling) there is no commission.

I am only trading in fund units at present due to their wide diversification.
Individual stocks are pretty risky at present.
Also there are currency risks with trading in other currencies as can be seen in
the pound weakening considerably against the Swiss frank whereas the Euro is strengthening.
Returns in pounds may look good until you take the currency losses into account.

Each to his own.

Last edited by MarkH; 01.02.2016 at 12:07.
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Old 01.02.2016, 12:00
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Re: Which broker

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I paid 0.5% commission on purchase of the funds up to a max of 500 chf.
On redemption(selling) there is no commission.
The OP is not wishing to purchase poorly performing Post Finance 'funds', so it's not relevant.
The OP specifically states Post Finance is ridiculously expensive, which it is.
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Old 04.03.2016, 11:36
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Re: Which broker

So what is the preferred option. If using the following scenario, which broker is best?

Buy CHF100K of large pharma company, listed on the Swiss Stock Exchange.

The choices I am aware of are:
- UBS
- SwissQuote
- PostFinance
- Schwab
- Interactive Brokers
- Etrade

What charges would I be hit with? Trying to decipher the UBS fees doc is a nightmare, so that immediately puts me off.
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Old 04.03.2016, 15:43
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Re: Which broker

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So what is the preferred option. If using the following scenario, which broker is best?

Buy CHF100K of large pharma company, listed on the Swiss Stock Exchange.

The choices I am aware of are:
- UBS
- SwissQuote
- PostFinance
- Schwab
- Interactive Brokers
- Etrade

What charges would I be hit with? Trying to decipher the UBS fees doc is a nightmare, so that immediately puts me off.
One that has a fixed fee , Is it traded as ADR's if so Schwab will charge $9.95 & nothing else, not bad on 100k investment.
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Old 04.03.2016, 16:01
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Re: Which broker

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One that has a fixed fee , Is it traded as ADR's if so Schwab will charge $9.95 & nothing else, not bad on 100k investment.
Not familiar with ADR's, but the shares in question are non-voting shares in a local big pharma company.

Googling ADR I come up with American depositary receipt, but again I'm not familiar with these and it is not my intention to trade in these.
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Old 04.03.2016, 16:17
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Re: Which broker

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Not familiar with ADR's, but the shares in question are non-voting shares in a local big pharma company.

Googling ADR I come up with American depositary receipt, but again I'm not familiar with these and it is not my intention to trade in these.
Then you will have to trade on the CH market & pay stamp duty then, plus any extra as time goes on.

Most big companies are traded in New York as ADR's, being the US market is the biggest & most liquid in the world.
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