Hi all,
Long time lurker here but wanted to ask a couple of questions on the approach to buying/selling shares of US listed companies as a UK resident.
Bit of background: 33 years old but have only started recently dabbling in investing (inflation and a falling GBP have given me a prod), have an S&S ISA with Vanguard LS-60% which is the bedrock of my investment, but want to open an account to trade in individual companies as a side activity.
Mainly interested in US companies, plus the fact that dealing in shares in the UK seems quite expensive compared to the US. Brexit is also a factor, and I'm unclear where the GBP will be in 2 years' time...With this in mind:
1) US provider: Does anyone have any ideas on good providers for UK residents which are cheap? -A lot of people I know are with Schwab but they have a $25k minimum investment which puts me off. Interactive Brokers has a $10k min but an ongoing $10 monthly fee which isn't ideal but is more reasonable than a $25k outlay, and what I'm leaning towards now. -I would've loved to try Robinhood given their zero trading costs but they've limited their product to US residents only. Anyone recommend anything else?
2) Tax implications: Does anyone have any experience with the implications for HMRC of investing in US shares? -I understand a W8 form is required for the US and needs renewing every 3 years. What tax rate effectively gets used for us in the UK? And how does this need to be reported to HMRC?
3) UK provider (ISA lens): I understand there are UK brokers which offer purchases of US shares (IN GBP) which can be held in an ISA. -Is this a good option? I understand brokers completely kill clients on exchange rate fees but not sure if this outweighs tax benefits vs. US taxes (if any)? -Holding USD in an ISA is not allowed as far as I know. -Best broker for this?
4) UK provider (USD lens): Does it make sense to hold US shares in USD? As per the above I'd assume the brokers make a killing on the FX fees, but does this hedge against the falling GBP?
Appreciate it's quite a long post but cracking my head at the moment finding the best way to invest in US shares without too much of an upfront investment, and in the most cost-effective way.
Any insight would be greatly appreciated! Thanks!
Submitted October 25, 2017 at 09:28AM by UKlurker2017 http://ift.tt/2zPaFof
