Overseas Shares
In recent years it has become a great deal easier and cheaper to invest directly in overseas shares. If you are dealing in US shares you must fill in a W-8 form which identifies you to the US Internal Revenue Service as a non-US resident and, therefore, exempt from paying US taxes.
Dealing via a UK-based brokerage as a private investor you are covered by the Financial Services Compensation Scheme, which is operated under the auspices of the Financial Services Authority . Dealing with a brokerage in the USA changes the regulatory framework. There, they are answerable to the Securities and Exchange Commission.
Investing abroad is not for beginners, most brokers will want to you to deposit larger sums before you start investing (there are exceptions) and you should bear in mind the potential currency risk. You earn your hard-earned money in pounds sterling. To invest in, say, US shares you need to change it into US dollars. This leaves you open to the danger that any appreciation in the value of your investment could be more than wiped out by an adverse movement in the sterling/dollar exchange rate!
How to Trade
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