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Trading from outside the U.S.

Discussion in 'General Discussion' started by Don S, Jun 20, 2016.

  1. Don S

    Don S Member

    I would like to move some IRA money from the US to overseas (not today, but in the next 2 yrs), but still want to do option trading, i.e. RTT, etc. Is anyone on here familiar with how to do this? I have TOS, but would think that a similar on-line broker (perhaps IB) would allow a non-US acct to trade US options.

    Thanks for any feedback on this.
     
  2. PaulJ

    PaulJ New Member

    Don,

    I trade RTT (and others) from Thailand via IB. I have full access to US options, equities, futures, forex etc. I'm not a US citizen though, so I cannot comment on any IRA restrictions that may exist.

    Paul
     
  3. tom

    tom Administrator Staff Member

    I'm a US citizen living in Europe. I trade my IB account which was opened in the US with an IRA. IB doesn't care where you login from. When you say you want to move the money overseas, did you know with IB you can keep your cash in non-USD? Just purchase the non-US currency on the FX market.

    Or do you want to move it to a non-US broker?
     
  4. TedLem

    TedLem New Member

    I opened my IB and Tos account in Hong Kong. I'm not a US citizen, but I did notice that they did ask a number of questions about your citizenship. They do ask for your passport copy.

    Each year there is an electronic to fill about citizenship and where you have been located for IB. Tos seems to send the paper copy to be filled. I guess Tos tries to verify a physical address that way.

    I've logged into IB and Tos when travelling to the US, Canada, Dubai and India and it worked there.

    I did try using a VPN to point it to another country other than Canada and the US. It did not work. The VPN was StrongVPN. :)
     
  5. TedLem

    TedLem New Member

    Here is an idea....you can register a limited company which needs audit statements each year.

    Then open a limited company account on IB or Tos. In many countries, there is no capital gains.
    There are cost associated in doing this:
    -paying someone for the offshore account and address
    -some pay for 1 person that operates which there are firms that do that.
    -audit fees
    -occasion trips to the country your account is located
    I think you can do that in many of these no capital gain countries.
     
  6. Gabor Maly

    Gabor Maly Well-Known Member

    I tried this with IB the other way around some time ago (being a European I wanted to have a US IB account instead of EU IB account), they didn't let me, their comment was that I do not have the option to chose, my citizenship, residence will determine the account I end up with.
     
  7. Teddy

    Teddy Well-Known Member

    IB changed its organization a few years ago. My account used to be with the IB US. It later split its organization to IB Hong Kong and my account was change IB Hong Kong. This has to do with IB's risk management and segregation of the organization into local regulations.

    I'm not sure if they do this by citizenship. As I remember from when I open the account, I just walked into the office and they asked me a few questions and asked me to fill some forms. I would be inclined to think it is local but then there are US tax reporting. I do have to fill the W-BEN every year which is electronic. I don't see the difference between the application for IB US and IB HK. It felt the same.
     
  8. tom

    tom Administrator Staff Member

    I'm trading an IB account opened by my friend in Slovakia. It was opened in the UK I believe but I have no problems trading it like my U.S. IB account. I even has his base currency set to USD.
     
  9. Heuut

    Heuut Member

    Yes, I (german citizen) live in Switzerland, accounts with IB US since 1997, got migrated to IBUK like everybody else when that division was setup. Unfortunately some of the guarantees (SIPC etc) won`t apply anymore. So I tried to get an account with IB US. But was told "impossible". The solution: Use a white label or introducing broker of IBUS!! Some of them will allow. In my case LVX (Livevol) was the best solution. Although they have been taken over by Lightspeed my account is still an IBUS account (even with TWS).

    Kind regards
     
  10. Don S

    Don S Member

    Want to thank everybody for their replies. :)
     
  11. Philip

    Philip Member

    Do you guys know if LightSpeed allows non-US citizens living in EU to open an account?


    Sent from my iPhone using Tapatalk
     
  12. Don S

    Don S Member

    I am not familiar with Lightspeed Phillip.
     
  13. Robert M

    Robert M New Member

    TOS claims not to restrict trading from outside the US...I am planning to trade TOS offshore later this year. Can anyone confirm TOS is fine offshore?
     
  14. Teddy

    Teddy Well-Known Member

    I trade both Tos and IB outside of the US. Seems to work fine in Hong Kong, China, Japan, Canada, Dubai, Singapore, and even Pakistan.....from my experience.
     
  15. Sofern

    Sofern New Member

    Is this really true that SIPC guarantee won`t apply anymore tu IBUK customers?
    I read these FAQ differently.

    http://ibkb.interactivebrokers.com/article/2012
    http://ibkb.interactivebrokers.com/article/2016

    I read it that it depends on the vehicles that are traded.

    "Q: Will clients assigned an IBUKL account also have an IB LLC account?
    A:
    Possibly, and in most cases, likely. In the case of a client only trading the product set currently eligible for clearing and carrying in the IBUKL account, there will theoretically be no need for them to maintain a IB LLC account. Clients who have other positions will retain or need to open an IBLLC account."

    So as long as you are trading US Index Options and the like these are still traded on the account of IB LLC even if you have been transferred to IB UK.
    Accordingly the british Interactive Brokers page refers to the SIPC Gurantee as well.

    https://www.interactivebrokers.co.uk/en/index.php?f=ibgStrength&p=acc

    So I think only when you trade NON- US Index options and the like then the SIPC gurantee does not apply but it has not applied ever before so there is no difference.

    Another point is cash as cash is only covered by SIPC when it is deposited "for the purpose of purchasing securities." Meaning US securities.
    http://ibkb.interactivebrokers.com/article/1968

    Cash is not automatically swept between IB UK and IB LLC.

    "Q: Can I sweep funds between the accounts?
    A:
    As IBLLC and IBUK are separate legal entities, excess funds will not be eligible to be automatically moved between the two accounts with the exception of the need to meet a margin requirement. Under such circumstances, IB will automatically move the funds necessary to meet the margin requirement between the IBLLC and IBUK accounts. The Excess Funds Sweep selection available to customers through Account Management will continue to be available; however this will impact only IBLLC accounts"

    So I think as long as cash is used as margin collateral for a US based Security it will be moved to IB LLC and protected under SIPC. Just when the cash is on the IB UK account and no position is on it will be protected only under Brish regime meaning only up to TGBP 50.

    I am customer with IB UK too so please let me know your thoughts.
     
  16. tonymcneddy

    tonymcneddy Guest

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