HalifaxNZ broker

Has anyone had any experience with Halifaxonline.co.nz?

They have a white label partnership with Interactive Brokers so have access to lots of international markets - I am looking to invest mainly in US focused ETFs.

Halifax's commissions are low and they confirm they have no other fees (no inactivity, no account minimum, no exit etc) - their conversion exchange rate is the spot + 1%

I've thought about going directly to a US broker such as TD Ameritrade and completing the W8-BEN form etc, but it feels easier to have a broker located in NZ. Also they tell me that the NZ FMA expressly disallow overseas brokers from opening accounts to NZers and they've seen a lot of new business because of this.

If you are purchasing ETFs there are many on the ASX to choose from

I used Halifax briefly before opening an account with interactive brokers.
I've been really happy with their service and the low fees are great - especially when converting currency.

I'm not sure where the "NZ FMA expressly disallow overseas brokers from opening accounts to NZers" statement is coming from. Halifax told me the same thing (which is why i went with them first since I didn't think I could open an account with IB because of it). I'm aware a lot of overseas brokers won't open accounts in NZ, but IB and others still do.

Hi Wolf. Thx for the recommendation.
I also wondered about their statement re the NZ FMA not allowing NZers to open overseas brokerage accounts..

Why did you move from Halifax to directly deal with IB if you don't mind elaborating?

Also, could you also help clarify these points (if you know), as I am unclear:

- the US death/estate tax threshold of US$60k; if you have more than 60k invested in US domiciled stocks, do they tax on the whole balance, or is it taxed from 60K and above?

- dividend taxation; I fill out a W8-BEN form and because of the tax treaty between NZ+US, the US withholding tax on the dividends paid out to me reduces from 30% to 15%. I then fill out an annual tax return in NZ to pay tax on these dividends locally. Do i get a tax credit in NZ for the 15% charged by the US?

Cheers!

While I appreciate this is an old thread, I feel it would be worthwhile to revive it somewhat. Would be very interested to learn more about the workings of US trading, as well as the Halifax platform.

I too am curious Wolf.