U.S. broker for foreigners? any recommendation?

[Kristofferson]

Sorry, don't know which subforum to put my question to ... I'm a German citizen and looking for a broker that isn't participating in CRS. A friend recommended me Charles Schwab, which looks really good. However I don't have the minimum deposit Charles Schwab requires, so my question is, are there other U.S. brokers open to foreigners, that don't require that amount of minimum balance?

 

[JohnnyDoe]

IBKR

 

[Kristofferson]

I'm a customer of IBKR, but the IBKR Europe division located in Ireland, and Ireland is part of the CRS treaty.. Are you referring to IBKR USA? Not sure whether I can open an account there. IBKR automatically pointed me to IBKR Europe for being an EU citizen..

 

[JohnnyDoe]

Just use a U.S. LLC

 

[10101]

Just use a U.S. LLC

Don't you have to pay US taxes on capital gains if trading securities under an american company vs trading as foreign citizen?

 

[aniglo22]

Don't you have to pay US taxes on capital gains if trading securities under an american company vs trading as foreign citizen?

No, if it's transparent. There is a withholding tax on Dividends that varies depending on the double tax treaty (DTA) in place.

 

[Kristofferson]

My friend (as a german citizen with his Charles Schwab account) told that several years ago, Charles Schwab withheld 15% taxes on dividends, but 0% on revenues trading shares or options. So I guess it depends. But not sure.

 

[aniglo22]

My friend told that several years ago he (as a german citizen with his Charles Schwab account) was drawn with 15% taxes on dividends, but 0% on revenues trading shares or options. So I guess it depends. But not sure.

Dividends are subject to withholding tax, whereas capital gains from trading shares or options typically are not taxed for non-resident aliens. You would be obligated to tax the capital gains in your tax-residence country.

 

[Kristofferson]

Right, but my question is which non-CRS Broker doesn't require that 25k minimum balance for opening a foreigner account.