Hi team OzBargain, what are the best ways to convert Aud and invest in US stocks? Any tax complications to consider?
Best Ways to Invest in US Stocks
amorn on 09/07/2025 - 11:25
Last edited 09/07/2025 - 13:54 by 2 other users
Last edited 09/07/2025 - 13:54 by 2 other users
Comments
Australian domiciled, broad-market US ETF instead such as VTS
FYI VTS is not Australian domiciled which is a pain at tax time
Thanks for the clarification. Just shows how complex the space can be!
Yes. Thanks for answering. No Offence :). I am specifically targeting large gold miners like AEM or WPM or FNV . Concerned with US broad market at it's peak, plus don't have much faith in their future anyway. Open to any advise :)
Or advice?
plus don't have much faith in their future anyway.
How loud need the warning bells to be ? ?
Agree
The NASDAQ ETF (NDQ) has been flying since it bottomed..
Defintiely the easiest way to get into US stocks and spread your risk
Look at Sharsies, they're pretty decent
First step would be to impeach a certain person.
The gangsters in charge are laughing at US and global rule of law.Impeachment? LOL, the constitution will be gutted before that happens.
Get elected to Congress or Senate or get employed in the current White House. Insider info for the win.
You can invest easily in au domiciled etfs which cover market segments (eg s&p 500) directly on the ASX via any local broker
One example would be ASX:IVVOr are you aiming to pick your own gambles/stocks directly?
Thanks for answering. I am aiming at large gold miners like AEM or WPM or FNV . Concerned with any broad market or ETFs with market at it's peak. Plus don't have much faith in US future anyway.
Why would us based gold miners be better choices than other markets?
Why would they be worth the hassle of Forex and overseas tax reporting headaches?Either way, not sure on the broker best suited for us market buys but good luck with your gambling.
Vanguards vgs might be worth looking into
VGS tracks the mcsi international (ex Aus) index, so while obviously a large portion is the US market it's not 100% the US market
Better option for someone who doesn't know how to invest in US shares anyway, as "diversification is the only free lunch"
Best Ways to Investing in US Stocks
Hi JV. Thanks for the reply. I have my stocks in mind (gold: like AEM or WPM or FNV) just enquiring about smart ways to purchase from Aus.
Etoro. Given you are starting out, they offer a copy trader feature: https://www.etoro.com/au/copytrader/
Thanks. Says Referee gets US$10 in BTC. Is in bitcoin? No other promos?
I think if you use a referral you get $50 USD each
Ozb says Referee gets US$10 in in bitcoin ?
Just put it on black.
Stake allows u to invest in individual USA stocks listed on the NYSE
You should acquaint yourself with how much USA tax will be withheld and the W8BEN form.
Any dividends you earn will have to be declared on your tax return while taking into account the foreign tax offset allowance.
moomoo lets you invest in US stocks. Webull, interactive brokers, probably lots of others.
Some US stock brokers let foreigners open up an account with them. I am using Tradestation, they give you a little bit of money for holding stocks like the way you get interest for holding money in a bank.
Most US based brokers have way better software than the ones here, lots more charting, no need to get approval for margin lending.
I would avoid eToro, excellent customer service but lots of hidden currency conversion fees, some stocks are considered CFDs and you will be charged a fee.
You only need the normal W-BEN forms and add up the taxes and put it into the tax return as foreign income with a tax treaty.
You don't need to be a sophisticated investor to invest overseas.
Sign up to IBKR interactivebrokers.com.au they have the lowest fees (it might look like CMC have the lowest fees but you get screwed on the exchange rate with them). Simply deposit AUD and buy USD shares no point in converting funds as they have great exchange rates.
Also much easier to fill out the W-8 form as part of the sign up process with them which is very important. The US has a tax treaty with us so instead of getting docked 30% on your income from dividends ect you will only pay 15%. You will need to declare any income from this under foreign income on your tax return and you will also declare how much foreign income tax you paid so this can be offset so you do not get taxed twice (You only pay tax on this in the US not Australia). Simple and straight forward to use you could also link something like sharesight which has good a good tax reporting report and I prefer to use it to track my stocks and easily see my average cost basis ect plus I just think the user interface is better.
One thing to note though they are not Chess sponsored so if you were thinking to buy Australian stocks as well use a different platform for that that is Chess sponsored (just to safe guard your assets like deposits in an australian bank being covered).
Good luck and happy investing.
Great answer. Thanks
i second IBKR. When i didn my research they had by far the best AUD-USD spread, while most other places charge you over 1% on every trade/convert (back and forth, so more than 2% in that case). makes a diff if you have non-small sums to invest
sent you dm :)
From my own research a year ago, there are two main options.
The convenient one: major brokers offer an "international" platforms. I personally used Commbank, Stake, Selfwealth. The pros: you are dealing with a local company. The money (AUD) you are sending is to a local company, so if there are any issues it'll be easier to contact (not that I ever had to). Also, if you already invest in ASX traded shares with any if these platforms, your account is already half way there in terms of setup.
The cons though is in how they invest in international shares and how you deposit/withdraw the funds. They use third parties (DriveWealth for Stake, for example) to actually purchase your shares, so an extra risk. But the main issue I had with them deposits/withdrawals. You can't deposit USDs. You can only deposit AUD and convert them to USD within the platform. And pay %% on the exchanged amount. The only way to withdraw money after the sale is to convert to AUD within the platform and pay %% again. Could be ok for a small investment, but adds up to a lot with a larger portfolio.
The second option is to open account with brokers that trade on overseas markets. I could only find Charles Schwaba and IBKR. I can't recall the reason why, but I went with Charles Schwab. Opening an account with them takes a while (2-4 weeks) and there's a minimum investment amount. But once set up, you can deposit USDs (I use Wise) and trade just like you would if you are a US resident.
Beware of a potential impact from the Big Beautiful Bill
Are there specific US stocks you want to target/buy?
No offence, but the way you've asked your question it's clear that you don't hit the ASIC definition of a 'sophisticated investor'. Could I strongly recommend you buying an Australian domiciled, broad-market US ETF instead such as VTS
Vanguard and Betashares would/should be your first points of call for this.