What are the costs, processes, and options for setting up an SMSF to invest in US stocks and ETFs?
Setting up a Self-Managed Superannuation Fund (SMSF) to invest in US stocks and ETFs involves understanding associated costs, following a clear setup process, and choosing appropriate brokerage solutions. Below is a comprehensive guide to help you get started.
SMSF Setup Costs
One-Time Setup Fee:
The setup cost for an SMSF with a company trustee is $1,495.
Annual Ongoing Fees:
For SMSFs investing solely in US stocks, the ongoing cost is $1,485 per year, including an independent audit.
If trading across multiple markets (e.g., US and Australian Stock Exchanges), the annual fee is $1,870 per year.
Brokerage Options
Grow offers solutions for selecting suitable brokerage accounts to trade in US-listed shares and ETFs:
SelfWealth: A low-cost option for trading US stocks with a flat brokerage fee of $9.50 per trade, regardless of trade size.
IBKR (Interactive Brokers): Available under the US Stocks Flexi solution for those with alternative requirements.
Steps to Set Up an SMSF
To establish your SMSF and start investing, follow these steps:
Complete the SMSF Pre-Flight Checklist: - Check for any Australian Taxation Office (ATO) issues that may lead to SMSF registration rejection. - The checklist ensures compliance and smooth setup.
Obtain Director IDs: - Ensure all SMSF members have valid Director Identification Numbers (Director IDs) as required by law.
Submit the Setup Form: - Once all prerequisites are met, complete the Grow online SMSF setup form to initiate the process.
Important Disclaimers
Grow SMSF services do not hold an Australian Financial Services Licence (AFSL) and cannot provide specific financial advice.
All fees mentioned are subject to change, and you should verify up-to-date rates before proceeding.
Related Topics
Benefits of a company trustee vs. individual trustee for SMSFs
Common mistakes to avoid during SMSF setup
Tax implications for SMSF trading in international markets
By following these steps and considering the associated costs and options, setting up an SMSF can enable effective investments in US-listed stocks and ETFs.