When Will OptionAutomator Come To My Country?
Hopefully soon. We have aggressive growth plans for the expansion of OptionAutomator into other countries. However, in the meantime, we truly believe that traders across the world should participate in U.S. options markets. These are the largest, most liquid options trading markets in the world.
Do you have to be in the U.S. to trade U.S. Options? No. You do not have to be a U.S. citizen to open a brokerage account to trade options. You must first contact a brokerage firm that permits non-U.S. citizens to open a trading account.
The requirements for establishing an account will vary from firm to firm, especially when it comes to online trading. We have outlined the requirements to trade U.S. options markets as a non-U.S. citizen in a blog post for you. Make sure to check that out!
You will need to provide either a Social Security Number, tax identification number, or complete Form W-8BEN from the IRS.
A W-8BEN form is a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting.
Any failure to provide the required information (for tax withholding purposes) will result in a backup. A backup withholds 30% on any income that you earn. If you are not subject to backup withholding, you will need to file Form 1001. (Ownership, Exemption, or Reduced Rate Certificate).
Additionally, you will need to provide some type of proof of identity, such as a passport. Proof of identity is required of all U.S. account holders. Only once the broker approve everything, you will be able to start trading options.
We hope that OptionAutomator will be ranking options soon on your local options exchange but in the meantime, we encourage all foreign investors to participate in the U.S. options trading market as it is the most liquid and therefore the easiest to trade.
This article is not meant to be legal or tax advice. Please consult with you own attorney and CPA before opening a U.S. brokerage account to ensure you understand the requirements and tax consequences.