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  • FIRST POST
    • stylus360
    • By stylus360 15th Apr 19, 4:22 PM
    • 390Posts
    • 24Thanks
    stylus360
    SHAREs - Buying in on the NASDAQ ?
    • #1
    • 15th Apr 19, 4:22 PM
    SHAREs - Buying in on the NASDAQ ? 15th Apr 19 at 4:22 PM
    Hi All

    I am looking to invest in the USA/NASDAQ.

    I traded on the LSE with X-O for over 15 years and done well.

    I am aware of tax implications and /$ fluctuations.

    I have downloaded the relevant W8-BEN form for Foreign Tax status.

    Where do i go from here?

    I am even unsure on what to put on parts 5,6,7 and 10 ( i have an idea but not 100%).

    Are there any sites similar to Jarvis Invetments/X-O

    It will be a long term investment.

    Anyone advise.

    Thanks
Page 1
    • AnotherJoe
    • By AnotherJoe 15th Apr 19, 4:34 PM
    • 13,500 Posts
    • 15,961 Thanks
    AnotherJoe
    • #2
    • 15th Apr 19, 4:34 PM
    • #2
    • 15th Apr 19, 4:34 PM
    ii ? (expensive IMO unless you are trading frequently) lets you have dollar accounts which is nice.
    From memory,
    5 i leave blank,

    6 I put UK NI number

    7 it says "see instructions" but I think I"ve used the account number in the stockbroker
    10 leave blank
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • LobsterMemory
    • By LobsterMemory 15th Apr 19, 5:01 PM
    • 121 Posts
    • 72 Thanks
    LobsterMemory
    • #3
    • 15th Apr 19, 5:01 PM
    • #3
    • 15th Apr 19, 5:01 PM
    The full US instructions are available on the Jarvis site

    http://www.x-o.co.uk/wp-content/W8BEN_Instructions.pdf

    However, here is how AJ Bell interpret what should be entered in the form for their clients which you can presumably adapt

    https://www.youinvest.co.uk/sites/default/files/useful-forms/AJBYI_Guidelines_for_completion_of_Form_W-8BEN.PDF

    Once you've filled in the form, you'll need to send it to Jarvis
    Last edited by LobsterMemory; 15-04-2019 at 5:04 PM.
    • stylus360
    • By stylus360 15th Apr 19, 5:32 PM
    • 390 Posts
    • 24 Thanks
    stylus360
    • #4
    • 15th Apr 19, 5:32 PM
    • #4
    • 15th Apr 19, 5:32 PM
    ii ? (expensive IMO unless you are trading frequently) lets you have dollar accounts which is nice.
    From memory,
    5 i leave blank,

    6 I put UK NI number

    7 it says "see instructions" but I think I"ve used the account number in the stockbroker
    10 leave blank
    Originally posted by AnotherJoe
    I forgot about ii, used to use them years ago...

    How would i have a stockbroker No. with ii though??

    It will be a long tem investment..No trading usual.


    Thanks
    • stylus360
    • By stylus360 15th Apr 19, 5:33 PM
    • 390 Posts
    • 24 Thanks
    stylus360
    • #5
    • 15th Apr 19, 5:33 PM
    • #5
    • 15th Apr 19, 5:33 PM
    The full US instructions are available on the Jarvis site

    http://www.x-o.co.uk/wp-content/W8BEN_Instructions.pdf

    However, here is how AJ Bell interpret what should be entered in the form for their clients which you can presumably adapt

    https://www.youinvest.co.uk/sites/default/files/useful-forms/AJBYI_Guidelines_for_completion_of_Form_W-8BEN.PDF

    Once you've filled in the form, you'll need to send it to Jarvis
    Originally posted by LobsterMemory
    Thanks, i did check the Jarvis help part but missed the PDF, will have a read tomorrow and give them a ring.
    • Alexland
    • By Alexland 15th Apr 19, 5:38 PM
    • 4,898 Posts
    • 4,234 Thanks
    Alexland
    • #6
    • 15th Apr 19, 5:38 PM
    • #6
    • 15th Apr 19, 5:38 PM
    I traded on the LSE with X-O for over 15 years and done well.
    Originally posted by stylus360
    Appreciate you didn't ask for investment advice but have you considered if your trading activity has yielded a return greater than a simple low cost index tracker? I was once part of a share club and we thought we were doing well (as our money was going up) but in reality we were taking greater risk and cost to underperform in a rising market.

    Alex
    • bowlhead99
    • By bowlhead99 15th Apr 19, 6:26 PM
    • 8,611 Posts
    • 15,750 Thanks
    bowlhead99
    • #7
    • 15th Apr 19, 6:26 PM
    • #7
    • 15th Apr 19, 6:26 PM
    On the W-8BEN:

    5 you can leave blank if you don't have one;
    6 you can use national insurance number or UTR;
    7 leave blank because if you deliberately give them a specific reference in the form they should only associate it with that specific purpose (and you might for example want to have an ISA account and a separate general investment account). If you are sending it to them by pose or email you will presumably tell them who you are and why you're sending it to them.

    10 is only to be used if you personally meet a specific criteria in your country's tax treaty which entitles you to a special lower rate of tax withholding than a normal person in your country of residence would get. So for example if you were a UK parent company which owned more than a tenth of the voting power of the US company from which you were getting dividends, you could get access to a special low 5% rate of withholding on those dividends instead of the normal 15% that the rest of us need to suffer. You're not, so you don't

    You'll find all the UK brokers that are dealing in international markets generally charge more than X-O.co.uk would charge for UK trades, because X-O are deliberately offering a no frills UK stock exchange only service, which is cheaper to provide than an international dealing platform.

    As mentioned up the thread, ii have access to lots of overseas markets and a convenient multi currency account functionality which a lot of other UK brokers don't bother to offer, although FX commissions are still reasonably high. The ISA rules prohibit them from allowing multi currency cash in an ISA though, so it's only an advantage for non ISA holdings . Their fixed ongoing fees for having the account (see thread on their recently-announced fee increases) is higher than it used to be which may put you off if you're a long term buy and hold sort of person, but effectively it's an inactivity fee because the monthly/quarterly fixed payments you make are available as trading fee credit for a limited period.

    If you're not too hung up on needing multi currency facilities there are a number of other brokers or DIY investment platforms that can handle NASDAQ / NYSE stocks. I have international shares in both my ISA and SIPP with AJ Bell Youinvest and they are fine, though sometimes a live online quote isn't available which can be annoying as there's no facility to leave an online 'at best' or 'limit' order on non-sterling stocks; and telephone orders cost 30 a time.

    Another service is IG.com, they have decent systems though I've only used them for spread betting and CFDs rather than actual shares.

    If you don't want ISA or pension facilities and are just dealing in a general account with no protection from the UK tax man, you won't need to restrict yourself to UK brokers and you could try other European service providers such as Saxobank or Fineco. Some like Degiro are super cheap, though if investing large amounts I would generally look at trusted UK names so you are dealing with UK institutions if something goes wrong
    • AnotherJoe
    • By AnotherJoe 15th Apr 19, 6:47 PM
    • 13,500 Posts
    • 15,961 Thanks
    AnotherJoe
    • #8
    • 15th Apr 19, 6:47 PM
    • #8
    • 15th Apr 19, 6:47 PM
    I forgot about ii, used to use them years ago...

    How would i have a stockbroker No. with ii though??
    It woudl be your account number


    It will be a long term investment..No trading usual.
    Then ii is an expensive place try HL, no charge to hold shares



    Thanks
    Originally posted by stylus360

    HTH. extra text
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • stylus360
    • By stylus360 17th Apr 19, 10:03 AM
    • 390 Posts
    • 24 Thanks
    stylus360
    • #9
    • 17th Apr 19, 10:03 AM
    • #9
    • 17th Apr 19, 10:03 AM
    HTH. extra text
    Originally posted by AnotherJoe
    Just sent ii a message -

    Hi I want to add funds and purchase shares on the NASDAQ. I have only ever purchased shares on the LSE before now. I filled in the your online form as required to be able to enter the 'international trade' section. I am just purchasing as a single person for my own personal investment. I am confused as what to do with or if i even need to fill in a W-8BEN form or am i ok as i have filled in your online form (as above). I have a copy of W-8BEN form, do i need fill it in? If so what do i put on sections 5, 6, 7 and 10? and who would i send it to?? I presume it needs filling in and returning to you?? Can you advise please. Here is link to the form - https://www.irs.gov/pub/irs-pdf/fw8ben.pdf I am thinking - 5. Leave blank (does not apply) 6. I put UK NI number 7. Tt says "see instructions" put in my account number from here xxxxx or do i put in your details?? 10. leave blank (does not apply) Regards

    I'm pretty sure i know what i'm doing the above is more for confirmation.

    Thanks
    • stphnstevey
    • By stphnstevey 18th Apr 19, 8:12 PM
    • 2,973 Posts
    • 487 Thanks
    stphnstevey
    If you have more than $100k (74k), Interactive Brokers is as little as $1 a trade and they waive the inactivity fee. They have great exchange rates and full FSCS and UK based company.

    You may also want to consider a NASDAQ 100 ETF which can be purchased in on most low cost platforms and has around a 50% exposure to the FAANGs
    Last edited by stphnstevey; 18-04-2019 at 8:20 PM.
    • IDontHaveAUserName
    • By IDontHaveAUserName 24th Apr 19, 2:36 AM
    • 3 Posts
    • 1 Thanks
    IDontHaveAUserName
    Degiro ... far better than IG, and since you won't day trade, yes ... far better
    • stylus360
    • By stylus360 24th Apr 19, 2:03 PM
    • 390 Posts
    • 24 Thanks
    stylus360
    Degiro ... far better than IG, and since you won't day trade, yes ... far better
    Originally posted by IDontHaveAUserName
    Wish i had seen that earlier.

    I'm with ii now and have purchased, looks like it's 9.99 month (from June)!!!!

    X-O is totally free as i am aware!!!

    Not sure what to do know tbh...

    Will see if i can figure out Degiro tonight when i am home, hopefully i can transfer shares to them for free and there is a lower/free fee just to hold/secure them.

    Thanks
    • ColdIron
    • By ColdIron 24th Apr 19, 2:33 PM
    • 5,133 Posts
    • 6,980 Thanks
    ColdIron
    X-O is totally free as i am aware!!!
    Originally posted by stylus360
    Totally free?
    http://www.x-o.co.uk/our_charges.htm
    • stylus360
    • By stylus360 24th Apr 19, 3:18 PM
    • 390 Posts
    • 24 Thanks
    stylus360
    Originally posted by ColdIron
    Obviously not to make a trade but for them ho hold/secure your shares as i did mention.
    • stphnstevey
    • By stphnstevey 24th Apr 19, 3:43 PM
    • 2,973 Posts
    • 487 Thanks
    stphnstevey
    Obviously not to make a trade but for them ho hold/secure your shares as i did mention.
    Originally posted by stylus360
    Look at Interactive Brokers also, only $1 trade NASDAQ shares and great FX, 6 UK shares of less than 50k, beware inactivity fee if less than $100k or equivalent

    Degiro loan your shares causing counter party risk unless you use custody account, which you pay for through dividend charges and can be costly for large distribution portfolios, although few NASDAQ shares pay dividends
    Last edited by stphnstevey; Yesterday at 3:47 PM.
    • A_T
    • By A_T 24th Apr 19, 3:45 PM
    • 647 Posts
    • 472 Thanks
    A_T
    Degiro ... far better than IG, and since you won't day trade, yes ... far better
    Originally posted by IDontHaveAUserName
    no FSCS protection
    • LobsterMemory
    • By LobsterMemory 24th Apr 19, 4:13 PM
    • 121 Posts
    • 72 Thanks
    LobsterMemory
    Errr.... about half the NASDAQ pay dividends
    • bowlhead99
    • By bowlhead99 24th Apr 19, 5:30 PM
    • 8,611 Posts
    • 15,750 Thanks
    bowlhead99
    Errr.... about half the NASDAQ pay dividends
    Originally posted by LobsterMemory
    Sure, but whether it's just marketing or a terrible cliche, Nasdaq has the reputation of being a home of fast growing high tech companies, compared to NYSE. It's home to companies that have 'only' been around since the 70s rather than the 1800s; firms like being associated with other new high tech 'high flyers' which makes it attractive as a listing venue for growth-oriented companies as well as being a cheaper venue to list a valuable business.

    So, if someone like our OP mentions they want to start investing in Nasdaq shares specifically (rather than just generally non-UK shares, or North American shares in particular), they must have some companies in mind, and just based on popular large cap stocks in that exchange that we've all heard of, it might be assumed that they one or more of them might be something like Amazon or Google or Facebook, Tesla, Netflix etc; none of whom pay dividends. And so the comment about dividend reinvestment costs being less relevant for the stocks which the OP could have in mind, is pertinent.

    You are right of course that not all NASDAQ companies are stingy with dividends. Microsoft and Intel have been around the block a few times by now and pay perfectly reasonable amounts. And likewise there are companies on the NYSE which deliberately don't pay dividends, like Berkshire Hathaway or Alibaba. However, when you take a quick glance at popular shares on both exchanges, you see that many of the big ones of the NYSE that you've heard about will pay regular divs (Exxon, Johnson & Johnson, Pfizer, Walmart, IBM, etc), while many on the Nasdaq pay zero (examples above)
    • stylus360
    • By stylus360 24th Apr 19, 9:08 PM
    • 390 Posts
    • 24 Thanks
    stylus360
    Thanks guys, looks like i'm stuck with ii then..

    I only hold about $20k in Pharma Companies with potential with Cannabis industry.

    I just wanted to diversify from my main Portfolio of UK shares, property, Crypto (by FAR my best investment!!)

    So it looks like i'm stuck with the monthly charge as they have done away with the quarterly payment which worked out cheaper.

    I will not be trading them, it's a long hold........

    I do day trade Crypto and have done since 2013, so i know the markets.

    How can X-O have zero fee's to hold/secure your shares but all others that deal in the USA charge?

    Was good to learn about purchasing, tax implications with regards the IRS/HMRC, that 8BEN form was essential!

    I used to do my tax returns online myself but pay an accountant know as it's more cost effective with work income/rent/shares etc as a sole trader..

    Cheers
    • Thrugelmir
    • By Thrugelmir 24th Apr 19, 9:22 PM
    • 62,869 Posts
    • 55,841 Thanks
    Thrugelmir
    How can X-O have zero fee's to hold/secure your shares but all others that deal in the USA charge?
    Originally posted by stylus360
    Low cost business model. Such as no marketing/advertising spend. Have grown organically by word of mouth and reputation.
    "The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge." - Howard Marks
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