[Germany] Trading from US

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geri
Posts: 5
Joined: Thu Jan 18, 2018 4:04 pm

[Germany] Trading from US

Post by geri » Tue Sep 11, 2018 4:26 pm

Hi,

I am trying to start investing in Germany while temporarily living and working in the US. I decided to to go with flatex.de because they allow people with US address to register as well. Now I am trying to actually buy ETFs and it does not work. After submitting the order I get the following cryptic message:
Ein Kauf ist für die Gattung nicht erlaubt. (9900037)

First the support wrote that they don't have the Basisinformationsdatenblatt to that specific ETF. Now I tried with others as well and I always got the same message. For my second, more pissed email, they wrote that I actually cannot trade ETFs because I am from the US. At this point I don't even know what could I be doing if I cannot trade. So my three questions are:

- Is anybody using flatex.de from the US (also registered as a US resident)?
- Do you know any other german online broker that allow US residents to trade?
- If I start trading in the US through a US broker, and I moved back to Germany, can my stocks be moved to my a german broker to avoid future tax filings in the US? If so, is it worth it?

Best,
Geri

typical.investor
Posts: 141
Joined: Mon Jun 11, 2018 3:17 am

Re: [Germany] Trading from US

Post by typical.investor » Tue Sep 11, 2018 6:40 pm

geri wrote:
Tue Sep 11, 2018 4:26 pm

I am trying to start investing in Germany while temporarily living and working in the US
- Is anybody using flatex.de from the US (also registered as a US resident)?
- Do you know any other german online broker that allow US residents to trade?
From a US tax perspective, holding foreign funds (traded on non-US exchanges) is inadvisable due to PFIC rules. https://thunfinancial.com/home/american ... tual-fund/ . I am not sure how temporary you mean by temporarily, but if you will have to file US taxes, you do not want something listed on a foreign exchange (unless it's an individual stock which I am not advising).
geri wrote:
Tue Sep 11, 2018 4:26 pm
- If I start trading in the US through a US broker, and I moved back to Germany, can my stocks be moved to my a german broker to avoid future tax filings in the US? If so, is it worth it?
I am not sure about German brokers, but Schwab has an international account that you can use as a German resident to hold US domiciled funds that you purchased while in the US. Interactive Broker's can do the same I believe (but is a little more complicated and has monthly fees for accounts below $100k.).

You could contact Schwab about opening a regular US account ask about converting it to an International one when you move back.

You have to consider Estate taxes too if holding US domiciled funds as a German Resident. There may be a treaty that makes it possible to do so without worry of high US taxes on your estate.

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