To help you understand and make the most of your international trading, we’ll answer your most popular questions.
I want to know:
- How do I trade US shares?
- What is withholding tax?
- How do we treat US income on UK listed shares?
- Which international stock markets can I trade on?
- What international charges do I pay?
- What’s the difference between trading international shares and UK shares?
- Why are there no live prices for international trades?
- Why do I have to buy a quantity of shares for international trades?
- How do we treat US income in a SIPP?
- Completing and returning a NYSE subscriber agreement:
You can use our Web Chat service once you’re signed in, or you can call us on 0345 722 5525 to agree over the phone. Or you can return it by post using the below address.
- Completing and returning a W8-BEN form:
You can email a form to us, or you can return it by post to the below address.
Posting your W8-BEN or NYSE Subscriber Agreement?
Please send your completed forms to:
Dealing Administration Department
Halifax Share Dealing
Lovell Park Road
Why do you need to complete a US tax form and NYSE subscriber agreement?
We have a duty to the US tax authority for customers holding US shares and receiving income from the US. We must request and receive documents to comply.
To access live prices from the New York Stock Exchange (NYSE) online, you are required to declare your status as either a non-professional or a professional subscriber.
Opening hours of international stock markets
Cost of shares - 10 x $100.00
Cost of shares in GBP - $1,000.00/1.52
FX rate with FX charge added (1.25%)
1.25% of 1.52 = 0.019
Cost of shares in GBP including FX charge
FX cost: £666.22 - £657.89
Trading international shares
When you invest in an international share you’re required to have an additional 10% of the total value of the trade (the total value is based on the estimated price) as a buffer to possible fluctuations in share price.
It’s worth noting that whilst you don’t need a 10% buffer in your account to sell international shares, you do need to understand that because of how the order book works you may not be able to sell your full order.
All international orders are placed on the order book and removed at the end of that working day –so if your order doesn’t go through or is only partially completed then you’d need to place a new order for the next trading day.
Trading UK shares
When you get a quote for a UK share we use automated systems to request quotes at the same time from all available market counterparties. Once we've received these quotes, we will automatically take the best price available and display this to you. Your order will be executed at the best price available.
When you trade UK shares there is also no 10% buffer, you’ll only need to cover the cost of your trade with the money in your share dealing account.
Because we get a quote instantly for you we will have the ability to use an ‘invest’ option which lets you trade up to the full amount of money held in your share dealing account rather than specifying a number of shares to buy.
International orders are dealt directly through the ‘order book’ at face value. Trading in this way allows us access to a much wider range of markets at a much lower cost, however this also means that a live quoting service is not available.
As international orders are placed directly on the relevant market's order book you will need to specify a quantity to trade and will not have ability to use an ‘invest’ option.
The Halifax Share Dealing Self Invested Personal Pension service is unable to arrange for US sourced income to be paid entirely exempt from tax in the US. Within our SIPP 30% Withholding Tax rate is applied to all US sourced dividends except where the shares are US listed and you’ve completed a W-8BEN form when 15% Withholding Tax will apply.
Please note, we don't currently offer a zero rate of Withholding Tax on US sourced dividends.
How this affects your holdings?
US listed shares
If you wish to buy US listed shares that pay US sourced dividends we require you to complete a W-8BEN form. Once we have this form we can apply a reduced 15% Withholding Tax rate.
For example, you would receive $85 on a $100 dividend. Other SIPP providers, depending on their arrangements, may pass on the full $100.
UK listed shares paying US sourced dividends
Ordinarily if you complete a W-8BEN form you will only pay the 15% Withholding Tax rate instead of 30% on US listed shares paying US sourced dividends. For UK listed shares paying US sourced dividends a 30% Withholding Tax rate is applied even if you have a W-8BEN form in place.
For example, you would receive $70 on a $100 dividend. Other SIPP providers, depending on their arrangements, may pass on the full $100.
Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.