Korean Job Discussion Forums

[freshking]

Hi this is a question for any U.S. citizens in Korea who do online trading. I'm looking into making an online trading account, and I wanted to know if you've run into any issues with your expat tax status. I'm concerned mainly with putting my parents' address down on the application as my home address and then somehow putting my tax exempt status for my Korean wages in jeopardy. I'm aware that I have to pay taxes on any profits from stocks, but I don't want to make a mistake and be forced to start paying U.S. taxes on my Korean job as well. If you have any good info I'd appreciate it. Thanks!

[kingplaya4]

If you use firstrade.com they will let you use your Korean address. You may have to contact customer service as one guy told me by email I couldn't do this. The customer service is very easy to get through to and the reps are native speakers. There is a bit of process setting things up, but if you are willing to be patient for a few days and have access to a scanner, things should be up and running soon.

The main issue is how much money you will lose in this market lol.

[420trader]

I'm a currency trader and I had the same questions when I first got here. I just updated my address and didn't have any issues. I did change my broker location to Australia instead of the US branch just because the time zones are closer....Actually, the real reason is because the new US FIFO regulations are total bullshit.

[matthews_world]

I'm looking at getting into commodities, currency, IPO's and penny stocks.

Any good tip resource sites, subscription or non, that you all can recommend?

[Highwayman]

[winterfall]

Yes you can trade online. But it will only be a individual brokerage account. You don't qualify for IRAs or Roth IRAs because only taxable funds can be put into them. If your still interested with an individual trader's account. Use your US permanent address to make things easier. Your Korean income tax status is something entirely different. Nothing changes with your overseas exemption. Your just in 2 tax brackets now.

Your overseas income is tax free (If you fill out all the forms). Your brokerage account isn't and your profits will be taxed at a US rate (Any income earned in the US, whether your physically there or not is ruled by US taxes). Your tax bracket will be whatever your US based income is for that year. You'll most likely be in the lowest bracket.

US expats get a grace period, an extra 2 months to fill out their tax forms. But since your in 2 tax brackets. You've got to fill everything out and arrange all your tax payments without that grace period.

For more info. Dig around the IRS site, one of their filled out example forms had info about a couple with overseas income and domestic US income.

@ another poster. Penny stocks is pure gambling. You have 99% chance of losing whatever you put in. But you don't have to take my word for it

[joesp]

You should be asking yourself instead how to not lose your pants, instead of thinking you're going to actually make money. Obviously you've never done this before!

The hardest thing about trading the US exchanges is that they open at 10:30 PM KOrean time (in the summer) IIRC .... that means you will have to stay awake to watch your trades or close out winning trades early to get some sleep, which only makes it even harder to make money because you can't even watch your winners and like sell 50% and let the rest ride ...

[winterfall]

[walter235]

Given how manipulated and crooked the market is now a days, why not just invest in physical gold and silver?!? Technical and fundamental analysis are out the window with all the garbage going on in American markets today!

[420trader]

Investing is just that - investing. I have my investments but still would like cash flow; plus, I love trading.

While I don't follow fundamentals for my trading, technical analysis is never really "out the window". If you're new to this, I definitely recommend trading play money and building a real trading plan.

[Wildbore]

[thegadfly]

OK, perhaps a stupid question, though somewhat related to the thread....

I recently tried to open a OANDA account, but it requires a scan of a utility bill in my name, as proof of address...I do not have any utilities in the US at my permanent address (my brother's place), so I applied with my Korean address and scan...and was rejected, as OANDA does not serve Korean customers....

...so, which brokers do you folks use? Kingsplayer mentioned firsttrade, which I will be looking into...but as for the others that posted here -- which broker do you go through for Forex, and were you able to sign up for an account from Korea?

Thank you in advance for any replies, and if you prefer to send a PM rather than post, that is also very much appreciated....