US prop trading solutions for remote European traders

O

ovisan

Hello everybody,

I'm looking for info regarding ways for an European trader to trade US stocks remotely through an US prop firm. For example ... I live in Romania, I'm daytrading for a living US stocks ... a few years experience and I would like to move away from my Lightspeed retail account but I can't seem to find a good prop solution. I've been contacted by a representative of an Nevis Island offshore arm of an US prop firm but I'm not so sure about this since I've read not so good things both about this firm and the new "independent contractor for an offshore" trend.
I saw someone else from Sweden posted a similar question ... but it was not very clear what the solutions were. http://www.elitetrader.com/vb/showthread.php?s=&postid=3415798
I know the classic way for an US citizen would be to take the series 56 exam and work as an employee for an US prop firm ... but I don't know how would that apply to an European remote trader.
In the same time I see these offshore arms of some US firms that offer you an "independent contractor" agreement but I have concerns about the safety of my capital
http://www.elitetrader.com/vb/showt...&perpage=6&highlight=broadstreet&pagenumber=2
I thought it would be a good thing to make a separate post under the title above. Can anyone offer some good and preferably verified insights about this topic or even have some recommendations ...

Thank you,
Ovidiu
www.ovidiususan.ro
 
You would need to find a firm that is located outside of the US. the registered US firms which are heavily regulated are exempt from accepting overseas residents. If you are looking for additional leverage & better rates and want to go prop internationally, you will be an independent contractor since there is little oversight over foreign securities in most nations. If you do a google search for international prop firms you'll probably find a few. Aside from Nevis, there are a few additional ones you may want to check out (I know of about 3 to 4). PM me for the names. I don't want to post them here and be accused for being a shill.
 
Quote from EvOTraderV2:

You would need to find a firm that is located outside of the US. the registered US firms which are heavily regulated are exempt from accepting overseas residents. If you are looking for additional leverage & better rates and want to go prop internationally, you will be an independent contractor since there is little oversight over foreign securities in most nations. If you do a google search for international prop firms you'll probably find a few. Aside from Nevis, there are a few additional ones you may want to check out (I know of about 3 to 4). PM me for the names. I don't want to post them here and be accused for being a shill.
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Just to clarify, US firms can and do have overseas members. They are all subject to the same rules and regulations. Series 7 etc.

Don
 
Quote from Don Bright:

Just to clarify, US firms can and do have overseas members. They are all subject to the same rules and regulations. Series 7 etc.

Don
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Mr. Bright are you saying that I can take the required exams being remote ... and trade without going to US for any legal procedures at all?
If that is true ... will I still be able to benefit from the "non alien resident" status that allows me to ONLY pay taxes in my own country and forbids my current retail broker from withholding taxes for US IRS ?


Ovidiu
www.ovidiususan.ro
 
Quote from ovisan:


If that is true ... will I still be able to benefit from the "non alien resident" status that allows me to ONLY pay taxes in my own country and forbids my current retail broker from withholding taxes for US IRS ?
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sorry ... I meant "non resident alien"

Ovidiu
www.ovidiususan.ro
 
Quote from ovisan:

Mr. Bright are you saying that I can take the required exams being remote ... and trade without going to US for any legal procedures at all?
If that is true ... will I still be able to benefit from the "non alien resident" status that allows me to ONLY pay taxes in my own country and forbids my current retail broker from withholding taxes for US IRS ?


Ovidiu
www.ovidiususan.ro
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Never said anything about IRS taxes etc. I'm actually not sure, each Country has a different reciprocity agreement. You can PM for my Compliance Officer's phone number, she can probably answer your questions.

Don
 
not good, if you have a series 7 and are paid on a K-1, it is deemed effectively connected income by the IRS and you WILL pay taxes in the USA regardless of any foreign tax treaty.
 
Hi Ovidiu! What is your reason for wanting to be a prop trader? Another trend is a lot of traders opening accounts at offshore broker dealers to avoid the PDT rule. SureTrader's rapid growth is a prime example of this, although their reputation in terms of support isn't so good, but I haven't seen any reviews saying their money goes missing.
 
Quote from FixedGrin:

Hi Ovidiu! What is your reason for wanting to be a prop trader? Another trend is a lot of traders opening accounts at offshore broker dealers to avoid the PDT rule. SureTrader's rapid growth is a prime example of this, although their reputation in terms of support isn't so good, but I haven't seen any reviews saying their money goes missing.
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Well ... I'm not really making a goal from becoming a prop trader. If you are a good trader you make money either way. And if you're not ... the prop firm can't make you profitable all of a sudden just because you join them. I guess I'm only worried about Penson's financial situation (Lightspeed's clearing firm) and I'm looking for a better deal in terms of commissions and fees ... and these retail brokers have poor commission rates.
In the mean time ... I'm not necessarily trying to avoid that PDT 25k since I already trade for some years using a retail account but, if you're good, a prop firm can give you superior buying power.

Ovidiu
www.ovidiususan.ro
 
Quote from Grandluxe:

not good, if you have a series 7 and are paid on a K-1, it is deemed effectively connected income by the IRS and you WILL pay taxes in the USA regardless of any foreign tax treaty.
More...


That would be a big problem ... since In my country I only pay 16% ... and as a retail trader I benefit the foreign tax treaty and the broker is not withholding anything for the US IRS. So this means the "independent contractor" for an offshore branch would be better ... from this point of view at least. Hmmm ....

Ovidiu
www.ovidiususan.ro
 
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