RE: Trading Options in the US Market

PierremontQuaker03

Hi, are there any traders out there? I was just wondering if its possible to trade options in the US market as a UK citizen. I cannot find the 100% confirmed answer. Hopefully someone on this board does? 

ImranQ

PierremontQuaker03 said:

Hi, are there any traders out there? I was just wondering if its possible to trade options in the US market as a UK citizen. I cannot find the 100% confirmed answer. Hopefully someone on this board does? 

Yes you are allowed to trade and invest in foreign markets. More specifically for the US market you will have to complete W-8BEN form once you are registered with a relevant broker. The form allows the US IRS to see your foreign tax status i.e. you will be paying your capital gains in the UK.
A good direct access (means you will get L1 and L2 market information) broker for dealing in foreign markets (incl US options market) is Interactive brokers (commonly referred to as IB). With most direct access brokers, you have to wire your money to the US into the broker bank account. With IB you transfer the money into their account into the UK and then convert as needed.