Wanting to Create Thinkorswim Account from Australia - Any Advice?

Ljordanman on 04/05/2018 - 13:03
Last edited 04/05/2018 - 15:34 by 1 other user

Hi guys,

I am looking for some assistance/advice with the following:

I wish to create an account with TD Ameritrade in order to use their Thinkorswim (TOS) platform for performing trades on the New York Stock Exchange. I will be primarily be trading options.

Although… I am unable to create a TD Ameritrade/Thinkorswim as I am a resident of Australia. As of the last few years, they are unable to offer accounts to Australians (I think due to some financial regulations that Australia has that other countries don't have).

I have tried other platforms such as Interactive Brokers and Trade Station, but they are nothing like Thinkorswim. TOS is far superior to the alternatives. I know that because I have used a free trial account when I was learning how to do options trading. (I had to create a "fake" person in the US to be allowed to sign up to a free trial account).

I have done some digging and asked some people about how I can overcome this, and I was told that Australians can create a company TD Ameritrade account. In order to do that I would need to:

  • Get a TIN (Tax Identification Number)
    I should be able to get one of those at the US Consulate.
    I need to complete a W-7 form and post that along with my passport and a clear copy of my passport plus a $65 fee. I need to say that I want to open a bank account in the US.
  • Form an LLC
    I heard i can set up an LLC online myself?
    I have been informed that I can set one up in Florida, New Jersey and Wisconsin as it is easy to do there. Wisconsin might be better because they keep all of the information confidential.
    I was also told that I need to get a local registered agent to help me with this.
  • Get a US mailing address
    I heard I can get a US mailing address at UPS online? Who can then forward all mail received to me here in Australia.
    The registered agent mentioned above may also be able to help me.

Couple of other things:

  • Once I have a US TIN, I will need to then create a US bank account (should create a TD ameritrade bank account?).
  • Depositing into the TOS account
    I assume I will need to transfer/wire money from my Australian accounts to my now US bank account to then deposit into TOS?
  • Withdrawing out of the TOS account
    I can get TOS to withdraw/wire money from my account to any account anywhere in the world. I could also wire it into my US bank account and use the Debit card for that account here in Australia to withdraw from ATMs.
  • How does the whole tax stuff work?
    I have no idea how all the tax stuff would work. I would be claiming the profits I make from TOS as income, but how does it work seeing as I would be trading as a LLC in the US but I am in Australia? I will need to speak to an accountant but does anyone have any ideas how it would work? Or could they point me in the right direction?

I think those are all the steps I will need to do… have I missed anything? If anyone has any expertise in this area, or any tips please let me know.

Please no negative comments, I really want to be able to use the TOS platform and I have tried alternatives but they are nowhere near as good as TOS.

Thank you all!

Financial

Comments

  • fattony64 on 04/06/2018 - 18:52

    Im in the same boat would love to use the platform

  • surethang on 10/07/2018 - 12:27

    Late to the party. Have you had any progress with any of this so far? Thanks.

    Can't help you with specifics, but here are my quick thoughts:

    • If you trade through a company, you may be classified as a "professional" trader which may have implications for fees, taxes, etc.; none of which I'm qualified or experienced enough to comment on

    • https://www.mycorporation.com/ can help with starting the company. I have no experience with this site, it's just one I've seen mentioned a few times

    • It's possible (but not always practical) to use another broker for trade execution, and use the TOS platform for everything else you love. You'd have to contact TOS to get live data activated on your trial account which plenty of people claim to have done

    • There are other brokers you might want to look at that accept Australian residents: Tradezero, First Trade, Lightspeed Trading, SpeedTrader, SureTrader, Saxo Capital, etc. But as none of them offers the TOS platform, you'll be in the same boat with each of them. However, I know at least one of them offers the DAS Trader Pro platform, which many consider excellent. YMMV. DAS Trader Pro also works with Interactive Brokers

    • If you haven't already, you could post your question on forums that deal with sort of thing (www.aussiestockforums.com, www.hotcopper.com.au, etc.). Obviously search first to see if your question has been asked and answered

    All the best.

  • PeteLikesIt on 10/11/2018 - 17:53

    I do some bookkeeping for a businessman in Adelaide who I know and he has researched setting up a US company in order to save on inflated exchange rate conversions charged by Visa, Paypal etc.

    He told me that Stripe Atlas will do everything for you - US bank account, US address, TIN, LLC company based in Delaware etc. I believe that you'll need to open a Stripe account (similar to Paypal) as part of the deal, but according to him, they make it all very easy and it doesn't cost that much either.

    https://stripe.com/atlas

    • atzoid on 19/11/2018 - 19:49

      Hey, I'm very intrested in doing this. I would love to talk with anybody who has actually done it and are trading with TOS.

  • mark82 on 05/02/2019 - 23:25

    Watching..I'm also interested

    • gregwars on 25/08/2020 - 18:06

      Hi,
      Were you able to singe up with TOS in the end? If so, I would like to know how you did it.

  • Neutron on 06/03/2019 - 23:54

    Did anybody go ahead with this solution, opening up a US LLC company and got account through that or is there a better alternative out there? Would like to get confirmation before I go ahead with this. Thanks.

  • JCrown9 on 20/03/2019 - 11:58
    +1

    To update on this thread.

    ive been in contact with TD in regards to account.

    Personal and also with a LLC (I have a registered LLC in Nevada). This is their reply.

    Thank you for reply and information.

    Unfortunately, residents of Australia currently cannot open accounts with us due to the country's Rules and Regulations which prohibit TD AMERITRADE from doing business there.

    Because of confidentiality needs, we are unable to provide further details.

    We worked diligently to ensure that we maintained consistency across the business, regardless of account status.

    While we appreciate your patronage,our business model and subsequent decisions must dictate our path for the future.

    We sincerely apologize for any inconvenience.

    Regards,

    Pasquale R

    Trader Support, Trader Services

    TD Ameritrade

    800-672-2098

    So at this stage its still a no.
    Lets hope tasty trade hurrys up and opens their doors soon enough for us all.

  • bigbob1 on 25/04/2019 - 23:17

    Hi Guys. I have followed this post since it was made hoping that i can find any information on anyone who has successfully managed to create their account by any means.. Id like to share with you my conversation by email with TD Ameritrade…

    My first email was to ask them if i could open an account in the US from Australia if i had opened a US company and used that to create the TDAmeritrade account. Here is the following of that
    9:53 PM (1 hour ago)

    to me
    Hello ***,

    Thank you for giving me the opportunity to assist you today. A corporation that is based in the United States my open an account with TD Ameritrade. Please note that we do not open account for corporations where the sole purpose is to invest funds. I hope that this information is helpful.

    We greatly appreciate your business and look forward to serving your needs for years to come. Should you have any further questions or concerns, please do not hesitate to reply to this message. I will be happy to assist you.

    Have a great day!

    Client Services

    TD Ameritrade
    1-800-669-3900

    TD Ameritrade, Inc., member FINRA/SIPC. Not an offer or solicitation to conduct business in any jurisdiction where we are not authorized to do business. Communications may be subject to review.

    Me Responding to TD

    10:01 PM (55 minutes ago)

    Hi Thank you so much for your replies. I would like to day trade to be more precise so not invest. Would this make a difference? I really want to use your platform and would like to know if there are any other options i can take to register for an account. If corporations are not allowed what about a standard company or some other type of business terminology that can provide me a legal path i need to register an account.

    10:31 PM (25 minutes ago)

    Again me sending another email 25 minutes later after no response

    I think i might have misunderstood your email reply. "A corporation that is based in the United States my open an account with TD Ameritrade. Please note that we do not open account for corporations where the sole purpose is to invest funds"

    Does this mean i can open an account to trade NYSE stocks? if i open a corporation/company within the United States. You mentioned we do not open account for corporations where the sole purpose is to invest funds. Now i apologize for my rookieness but is "investing in funds" different than what i want to do as an individual trader. As im thinking funds may be referring to something like a mutual fund

    His response
    Hello *** ,

    Day trading is investing. If you purchase securities, you are investing. I can only tell you that if you establish a US Corporation and the sole purpose of the corporation is to invest funds, we will not open an account for the corporation. If you wish to open an account for a corporation, it must be a legitimate business that offer products and services.

    Please understand that I do not have any additional information I can provide regarding this matter.

    Best regards,

    Client Services

    TD Ameritrade
    1-800-669-3900

    If anyone else has been able to create an account or share their progress. Please share it with us… Im considering resorting to a fake company that is "not for investing in funds" and is "real" but i dont know what legal implications id be putting my self for.. Maybe another option as crazy as it sounds is to seek citazanship from some country not blacklisted by them and use that. I mean thats a ridicules work around but hey.. with everything online these days it might not be too hard.. I personally dont have to go through that route as my wife is a dual citizen of a country not banned from TD Ameritrade. I think il end up resorting to that option if i can make it work. Good luck to everyone else..

  • bigbob1 on 26/04/2019 - 00:36

    I just read through the terms and conditions on TD ameritrade. It might not be a good idea to use my wifes details as i think it might get her in trouble if Australia is blocking the company from doing business their might be an important reason why that i dont understand. I might look into it more or just end up creating an account with Suretrader instead and saving my self those headaches..

  • JCrown9 on 16/05/2019 - 11:44

    Incase anyone is still following.
    tastyworks is now available in australia.

    just signed up today :)

    • 432860 on 27/05/2020 - 11:25

      Hi JC….what method did you use to transfer funds to Tastyw

  • Andy60 on 08/09/2019 - 21:21

    I used to be with TOS before ameritrade got deactivated like the rest of us I needed to continue options trading found Optionvue, I find optionvue far superior to think or swim hope this helps

  • marquise on 14/09/2019 - 22:23

    I have been trading options most nights using Tastyworks for the last few months, feel free to ask me anything. The brokerage savings are phenomenal! The only downside is not being able to chart options or see depth of market (I use Tradestation for this)

    My margin account was PDT-restricted, but I was able to open a new cash account and transfer the funds across, so it's a good workaround. Now my margin account is unrestricted again, I am slowly transferring funds back.

    The strange thing with the cash account is that the unsettled funds appear straight back in your account for use (like a margin account). I have read that if you keep trading with this you could be hit with a good faith violation. I am pretty sure I have done it a couple of times, but haven't heard anything of it.

    I use Tradingview for charting as it is so fast and I depend on the alerts.

    If you are a regular trader (stock/options) on US markets feel free to get in touch. Would be great to keep in touch with other aussie traders.

      • marquise on 12/03/2020 - 16:46

        Yes I believe so. It gets a bit pricey with the exchange rate that your bank gives you plus the fee.

          • marquise on 13/03/2020 - 06:24

            @hazlitt: Trading US options is a whole new world in comparison, though premiums are ridiculously high now for long positions due the volatility. Oh and you know, staying up through the trading session is not suited to everyone.

      • hiiragizawa on 18/06/2020 - 19:07
        +1

        I can see CurrencyFair being supported too as per https://tastyworks.freshdesk.com/support/solutions/articles/…

    • 432860 on 27/05/2020 - 11:24

      Hi..re using Tradingview…did you have to fund the account to get access to the software? I have signed up but wont let me download.

      • marquise on 27/05/2020 - 11:29

        Tradingview is web-based charting that can integrate with some brokers. You don't fund your account, but you can subscribe to realtime data. There's nothing to download as it's web-based.

    • jaustrade on 09/06/2020 - 23:58

      Hey mate, I've looked into a few platforms - stake etc. Would you say Tastyworks has been the best platform so far? It seems we use the same technique, I'm using tradingview too for charting too. Would be great to get some help from you setting this up. Thanks!

      • marquise on 10/06/2020 - 01:28
        +1

        Tastyworks is fast and cheap (esp if you buy more than 10 contracts), but it does lack any way to see trade history of the contracts, which is very useful. I use Tradestation or IB for this.

        Stake is not a proper trading platform, don't bother unless you're looking for a cheap way to swing shares you won't look at very often. It doesn't do options either.

        • jaustrade on 12/06/2020 - 00:15

          Thanks for that, I thought IB is not in operation in Australia? Yes I heard Stake was bad.

    • hiiragizawa on 16/06/2020 - 08:10

      This was a good post for me as I’ve just started to look into options trading, thanks!

      Is there a community discord server/etc already running that I could join for Aussie traders on US markets?

      • marquise on 16/06/2020 - 21:11
        +3

        I'm in a paid discord server of mostly Americans that focuses on options on bigger caps and trading penny stocks/low floaters. There's a free channel there you could check out. DM me for details.

        • ArchWes on 01/07/2020 - 16:02

          I am also looking for a US trading discord for Aussie traders. Will DM you once my ozbargain account reaches enough maturity to allow DMs.

    • gbossstyles on 20/07/2020 - 11:31

      How are the tax implications for international accounts? I had a quick read on Tastyworks site and there's a tax witholding. Is this done after any profits from closing a trade?

      And are the remaining funds taxed again when you transfer them back to Australia?

      Currently looking for a new platform as I'm moving back and I'll have to give up on TOS it seems and this platform which you recommended looks to do the job and have cheap trading rates. Also hollar back if you have a discord room, like you said might be good to get in touch with some fellow traders locally.

      • marquise on 20/07/2020 - 22:02

        I have not had any tax withheld on Tastyworks or any other platform. It might be withheld for US traders. There are better platforms than Tasty for stocks. Tasty is good for for options.

        Were you actually able to open a TOS account?

        Royalty Trading is the discord I'm on. You can easily google for it.

        • gbossstyles on 21/07/2020 - 04:59

          Oh right it only seems to be done on dividends and not from sales, it think that's worked out on your own. So basically you just trade U.S stocks then do your normal profit/loss statement with the ATO?

          I have a TOS account because I currently live here, I might keep it for the analysis and all my scripts ect, will be a pain to re-write them all in something else. Actually I might/should still be able to trade with it, need to see what the rules are trading from OZ.

          I'll checkout that discord group if you have any other platforms for stocks pls let me know.

          • marquise on 21/07/2020 - 06:09
            +1

            @gbossstyles: Yes that's just the standard 15% withholding tax. You include that in your taxes.

            You might still be able to trade on TOS. One of the guys in my chatroom is from the UK, worked in US for a while. Still trading on TOS back in UK now. I dunno what visa though.

  • tonysstarkk on 23/07/2020 - 12:35

    @marquise
    is there any platform we can use that provides free or cheap level 2 and time and sales data in Australia fro US based stocks?
    Those things are free in USA

    • marquise on 02/08/2020 - 22:11

      Tradestation may do that to some extent on free plan. They say they charge a higher fee if you trade through the desktop platform, so I'm assuming you might still be able to view it, then trade through the web platform.

  • marbss on 04/12/2020 - 20:27

    just revisiting this thread. Anyone here using tastyworks?

  • jaste on 03/07/2021 - 11:11

    @marquise I am trying to open a Tastyworks account from Australia but the Account Opening website doesn't accept a non-US Zip Code. Won't let me proceed. Any help would be appreciated, thanks.

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