Trading US shares
Before you can buy US shares (or if you’re receiving income from the US), you must complete an IRS tax form. For trades on the New York Stock Exchange (NYSE), we are required to declare your status as either a non-professional or professional investor.
The W-8BEN form is valid for three calendar years following the year in which you sign it, unless your personal circumstances change. Please let us know within 30 days if this happens. We will contact you when your form is due to expire.
Below is an example of how the foreign exchange charge is calculated:
You buy 10 shares in a company valued at $100.00 per share. At the time the trade is placed, the £/$ exchange rate is 1.5200.
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
1.52 – 0.019 = 1.501
Cost of shares in GBP including FX charge
FX cost: £666.22 - £657.89
The final figure shown within the above table as the FX cost will be the fee taken by us for the $1,000 international trade at an exchange rate of 1.5200.
Bank of Scotland Share Dealing Service is operated by 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 under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.