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  1. #51
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    Quote Originally Posted by Monarch View Post
    Do you think it is likely IB will close down nz accounts as well? It would be a real pain if they did.
    No one knows if IB will close NZ accounts. Prior to leaving Canada, Daytek was my US broker, then Ameritrade bought them out, then TD merged with them, then finally Charles Schwab bought them out. I don't think TDA had any intentions of closing foreign clients out until Schwab came along.

    Have a look at IB's list of countries they accept clients from:

    https://www.interactivebrokers.com/en/index.php?f=7021

    Then compare that list to what other major brokers in the US are willing to accept? It's very clear IB is sitting on the other side of the fence as they disregard the CRS or foreign gov't regulations. Then there's the anti-$ laundering aspect. I wonder how many of those countries in that list have a thorough policy against laundering $ ? I recall Mexico claimed that status while El Chapo drug $ went into HSBC's bank accounts; "saying and doing are 2 different things".

    Keep in mind, since the eruption of the Panama Papers (and similar tax free haven breaches that the media has exposed in the past several years), the OECD and UN has stepped up their tax evasion policy. This brought out the CRS, and recently, Janet Allen's meeting at the UN earlier in the year, to have a global minimum tax on corporations. We've seen the EU try to tax companies like Apple in Europe (despite being incorporated in Ireland where they negotiated a tax free status ; no different than the US auto-pac negotiates a free trade, duty free, tax free zone in Mexico. So the more appropriate question is how far will the sovereignty of a country remain credible if foreign gov't entities can muscle arm their policies?

    Then there's the NZ side of things where I see brokers like Jarden and Macquarie milking in fees off clients in much the same way I saw brokers back in Canada do the same in the early 90s. What brought on change in Canada was competition from the US. Canada was forced to remove archaic regulations such as a managed fund had a minimum 33% domestic Cdn asset requirement. The Cdn gov't knew they could not stop people from wanting to invest in US equities nor structure tax laws to discourage investment from leaving Canada (as the US stakeholders had investment heavily tied into Canada). However when I look at NZ, we have a horse of a different colour. We're geographically remote from all the major equity markets. We have gov't FMA regulations that are telling foreign brokers not to deal with NZ residents. We have a tax structure that is vastly different to the taxation in most OECD nations (ie. we don't have a formal CGT policy). We have FIF that taxes paper gains. We have managed funds that tax under RWT vs N. America residents that do 'deferred taxation' in their investment RRSP/401K etc plans.

    On different news. My partial ACAT transfer came through from TDA which took about 3 days. This means in the future months, a full account transfer can be done without any hitches if TDA has to be closed out.

  2. #52
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    Quote Originally Posted by SBQ View Post
    On different news. My partial ACAT transfer came through from TDA which took about 3 days. This means in the future months, a full account transfer can be done without any hitches if TDA has to be closed out.
    Good news SBQ!!
    I've been trying to figure out if my father's trust can open an IB account (3 owners). it turns out that an IB joint account can only have 2 owners.
    I'm waiting for a reply from IB as to what is possible

  3. #53
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    On different news. My partial ACAT transfer came through from TDA which took about 3 days. This means in the future months, a full account transfer can be done without any hitches if TDA has to be closed out.
    Thanks for that, SBQ, good to know.

  4. #54
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    I have now completed my full ACAT transfer from TD Ameritrade to Firstrade.
    I have to say it went swimmingly. I had to pay USD 75.00 for the transfer. It took just 4 business days. A hiccup with some of my positions (non marketable) meant my initial transfer request was rejected and I had to call TD Ameritrade but they were very helpful. Resolved very quickly.
    I am now trading on Firstrade and so far so good but it's early days. The platform seem OK to use, research tools are equivalent to those on TDA (I only use basic ones though).

    Bear in mind that during an ACAT transfer, your TDA website access will be blocked, and so you spend a few days not knowing what your positions are.

  5. #55
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    Quote Originally Posted by Toukshare View Post
    I have now completed my full ACAT transfer from TD Ameritrade to Firstrade.
    I have to say it went swimmingly. I had to pay USD 75.00 for the transfer. It took just 4 business days. A hiccup with some of my positions (non marketable) meant my initial transfer request was rejected and I had to call TD Ameritrade but they were very helpful. Resolved very quickly.
    I am now trading on Firstrade and so far so good but it's early days. The platform seem OK to use, research tools are equivalent to those on TDA (I only use basic ones though).

    Bear in mind that during an ACAT transfer, your TDA website access will be blocked, and so you spend a few days not knowing what your positions are.
    Good to know - during my 'partial' ACAT transfer I was still able to login TDA and view all positions.

    As a reminder (and you may know), TD sent a reminder message, to confirm it quotes:

    If you do nothing, a restriction will be placed on your account limiting the account to closing transactions only. You may continue to hold any current positions and the account may remain at TD Ameritrade.
    So this means to pick ultra long term positions. Say Vanguard's VOO, BRKB, or long term ETFs where you can slowly sell over the years and transfer to your bank account in a retirement situation.

  6. #56
    ShareTrader Legend bull....'s Avatar
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    been long time td trader shame alright to get the message about closing accounts. its been mentioned IB is good as well but you need to be a regular trader to make it worth while.

    anyway got one of my my last otc trades on gvsi go you beauty lol


    if you really wanted to keep your account you could set up a LLC in any state you choose and transfer the account to that entity.
    Last edited by bull....; 24-09-2021 at 06:30 AM.
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  7. #57
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    Quote Originally Posted by bull.... View Post
    been long time td trader shame alright to get the message about closing accounts. its been mentioned IB is good as well but you need to be a regular trader to make it worth while.

    anyway got one of my my last otc trades on gvsi go you beauty lol


    if you really wanted to keep your account you could set up a LLC in any state you choose and transfer the account to that entity.
    That would be beyond most people's interest and from a tax perspective, a huge disadvantage. The US incorporated company will have annual accounting and lawyer to contend with, and above all - annual filing to the IRS. If the directors of the LLC is a NZ resident, then there are other rules which i'm sure IRD would be interested in knowing.

    Compared to the individual owning directly - they only have to deal with W8BEN filling every 2 1/2 years for IRS compliance. At the IRD end it's only FIF if total invested capital exceeds the $50K threshold. The only advantage I can see by setting up a company is if the owner dies, the company can carry on and avoid the US estate / death taxes.

  8. #58
    ShareTrader Legend bull....'s Avatar
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    Quote Originally Posted by SBQ View Post
    That would be beyond most people's interest and from a tax perspective, a huge disadvantage. The US incorporated company will have annual accounting and lawyer to contend with, and above all - annual filing to the IRS. If the directors of the LLC is a NZ resident, then there are other rules which i'm sure IRD would be interested in knowing.

    Compared to the individual owning directly - they only have to deal with W8BEN filling every 2 1/2 years for IRS compliance. At the IRD end it's only FIF if total invested capital exceeds the $50K threshold. The only advantage I can see by setting up a company is if the owner dies, the company can carry on and avoid the US estate / death taxes.
    like you say it probably not realistic for most individual's on the other hand for some people it is a good solution for people wanting a presence in the us without to much paperwork needed and its not a big tax disadvantage.
    LLC can be look thru companies and all have different tax requirements depending on the state you register in and some can effectively be no tax pay in us as there are a lot deductions available.
    NZ ird disclosure is probably as a foreign controlled company and hence the income is taxed as foreign income in NZ tax return. simple stuff really but as always a tax expert in int tax matters is important to ensure you doing right.
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  9. #59
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    Quote Originally Posted by bull.... View Post
    like you say it probably not realistic for most individual's on the other hand for some people it is a good solution for people wanting a presence in the us without to much paperwork needed and its not a big tax disadvantage.
    LLC can be look thru companies and all have different tax requirements depending on the state you register in and some can effectively be no tax pay in us as there are a lot deductions available.
    NZ ird disclosure is probably as a foreign controlled company and hence the income is taxed as foreign income in NZ tax return. simple stuff really but as always a tax expert in int tax matters is important to ensure you doing right.
    My mind may be a bit off but as i'm aware, a US non-resident alien (foreign resident) can not directly form an LLC as a 'look through' tax status with the IRS. Regardless of being LLC or a look-through status, individuals have no problem accessing US investments directly. Generally speaking, things get difficult when a shareholder of the company dies. This is not something I would advise for individuals to consider doing as it can open up a can of worms. Unlike IRD, the IRS has extraordinary powers that favour to their advantage. For eg. if an individual owns a company in the US and derives income from it, then they lose the right for declaring W-8BEN status and would require a different form that attracts more IRS scrutiny.

  10. #60
    ShareTrader Legend bull....'s Avatar
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    Quote Originally Posted by SBQ View Post
    My mind may be a bit off but as i'm aware, a US non-resident alien (foreign resident) can not directly form an LLC as a 'look through' tax status with the IRS. Regardless of being LLC or a look-through status, individuals have no problem accessing US investments directly. Generally speaking, things get difficult when a shareholder of the company dies. This is not something I would advise for individuals to consider doing as it can open up a can of worms. Unlike IRD, the IRS has extraordinary powers that favour to their advantage. For eg. if an individual owns a company in the US and derives income from it, then they lose the right for declaring W-8BEN status and would require a different form that attracts more IRS scrutiny.
    im no tax expert on these matters but it is an avenue worth pursuing if you want to do business in the usa or have access to there services.
    Last edited by bull....; 25-09-2021 at 06:08 AM.
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