Author Topic: Investing in US Stocks?  (Read 4463 times)

Patrick

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Re: Investing in US Stocks?
« Reply #15 on: August 03, 2018, 11:05:19 am »
They're more expensive than the offshore guys but otherwise there's nothing wrong with EE for the first $60 000.

gto52

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Re: Investing in US Stocks?
« Reply #16 on: August 03, 2018, 11:47:29 am »

Patrick

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Re: Investing in US Stocks?
« Reply #17 on: August 03, 2018, 12:20:16 pm »
Very interesting, I wasn't aware of that! Thanks for the heads up, I was nearly going to start recommending them to others. I think I'll wait until they sort out the repatriation of funds.

gto52

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Re: Investing in US Stocks?
« Reply #18 on: August 07, 2018, 03:25:09 pm »
I asked Easy Equities about the withdrawal process they said:

"Thank you for the query.

The withdrawal process is the same as your ZAR account. You can make a withdrawal into a cheque account, just keep in mind that we only pay Dollars for USD account withdrawals so your bank would contact you to convert the funds into Rand."

So it seems like it isn't a problem after all.

willemm

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Re: Investing in US Stocks?
« Reply #19 on: August 08, 2018, 01:25:27 pm »
So I see Saxo Capital Markets SA is no more after the acquisition by Sasfin. Looks like it is rebranded to Direct Market Access now: http://www.dma.co.za

t_Rex

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Re: Investing in US Stocks?
« Reply #20 on: January 24, 2019, 11:46:52 pm »
So, for those who have neither $10,000 for an IB account, or an EU address/passport for a De Giro account, what is the best way to go?

Patrick

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Re: Investing in US Stocks?
« Reply #21 on: January 25, 2019, 10:43:36 am »
Interactive brokers has dropped the $10 000 minimum. They only issue I have with them is that they have a $10/month minimum fee, so if you only spend $5 in transaction fees for the month, you have to pay another $5 at the end of the month.

Co

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Re: Investing in US Stocks?
« Reply #22 on: April 08, 2019, 07:11:21 pm »
Orca have very solid advices here. So many scums out there, you need to be carefull even with local stocks and local brokers. How can you be sure they will do what they promise to you even after you will get the needed bank account for that.

Orca

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Re: Investing in US Stocks?
« Reply #23 on: April 09, 2019, 07:24:07 pm »
@Stefan. I have never traded on a foreign stock exchange but can give you some pointers.
In SA you pay tax on your worldwide income so any trades made and concluded will be regarded as income. Many people think that if the money is still overseas after the trade is over and done then it is still gaining or losing value as Forex and no SA tax is due until the cash is available in SA. This is not true.

You don’t pay tax on currency movement while you are invested so you must do all the calculations in USD such as the purchase and sale plus the profit/loss. Only then do you convert the USD to ZAR at the spot price on the day the trade is concluded.
This amount must be recorded by you for efiling later. Note that all amounts in your broker account must remain in USD for all future trades. Only once the trade is concluded do you record the profit/loss in ZAR.

This is trading much like selling and buying cars so you will be a provisional tax payer and must adhere to the dates required for provisional tax returns.

The same applies to investors except they are not provisional tax payers.
« Last Edit: April 09, 2019, 07:41:28 pm by Orca »
I started here with nothing and still have most of it left.

XXXXX

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Re: Investing in US Stocks?
« Reply #24 on: April 13, 2019, 04:16:01 am »
I used Internaxx for 10 plus years (Closed last year) with no problems.    Very happy with the product and service levels, perhaps more expensive than other alternatives.   But I would use them again.

XXXXX

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Re: Investing in US Stocks?
« Reply #25 on: April 13, 2019, 11:57:55 pm »


You don’t pay tax on currency movement while you are invested so you must do all the calculations in USD such as the purchase and sale plus the profit/loss. Only then do you convert the USD to ZAR at the spot price on the day the trade is concluded.
This amount must be recorded by you for efiling later. Note that all amounts in your broker account must remain in USD for all future trades. Only once the trade is concluded do you record the profit/loss in ZAR.



Correction to above.  An individual taxpayer (for CGT purposes) has the ability to choose to translate the foreign gain at either the Spot price on the date that the share was sold or at the average exchange rate in the year that the security was disposed.  Two important take away's from above are as follows.   1.  In times of rapid currency fluctuations the taxpayer should compare the rate and apply the rate that will be most beneficial for him selves.   
2.  If you long term view is of a gradual devaluation of the Rand, the above method of calculating the capital gain on foreign securities is extremely beneficial to the taxpayer (no matter which method you use), as effectively the forex gains (from date of purchase to date of sale) is received free of capital gains.  You do not get the same benefit if you acquire South African denominated securities with offshore exposure.