International Clients

I am a resident of Australia. What are the rules for my account?

Australian individuals may not have a margin account. Australian entities may apply for margin accounts. For the past several years, IB has been offering foreign currency trading to Australian clients under a “no-action” letter issued by the Australian Securities & Investment Commission (“ASIC”). The “no-action” letter allowed IB to offer forex trading to our Australian clients just as we offer it to other clients around the world. Unfortunately, ASIC has informed us that it has decided to withdraw the “no-action” letter covering IB forex offering in Australia. We have therefore decided not to allow our Australian clients to initiate new forex positions (i.e., a currency position that is leveraged or financed). We intend to seek clarification from ASIC regarding our Australian clients’ existing forex positions and also whether Australian clients may continue to convert one currency to another on a non-leveraged basis.

What is the tax code for non-US citizens and/or residents?

Generally, tax is withheld at a rate of 30% on payments of US source stock dividends and substitute payments in lieu. The rate of withholding may be reduced if there is a tax treaty between your country of tax residence and the US. We do not withhold sales proceeds. As far as individual tax implications unfortunately we can’t comment on individual tax situations and it would be best to double check with your tax adviser.

Why do I need to complete a Form W-8?

All non-U.S. persons and entities are required to complete an IRS Form W-8 to certify their country of tax residence. If you complete Form W-8 you will not receive Form 1099. However, you may receive Form 1042-S which reports interest payments, dividends, and substitute payments in lieu and applicable U.S. tax withholding, thereon, from U.S. securities paid to foreign investors. Refer to IRSPublication 519, US Tax Guide for Aliens, for more information.

What is the difference between Zacks Trade and Zacks.com?

Zacks Trade (www.zackstrade.com) is an online discount brokerage trading firm. Zacks Investment Research (www.zacks.com) is a leading provider of independent investment research and proprietary tools, including the Zacks Rank stock-rating system, for individual investors. Zacks Investment Research provides research information through several types of free and paid research subscriptions. Zacks Trade and Zacks Investment Research are separate companies.