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How can I set up a brokerage account for US stock trading within my SMSF?

Kris Kitto avatar
Written by Kris Kitto
Updated over a week ago

Setting Up a Brokerage Account for US Stock Trading in Your SMSF

Managing an SMSF (Self-Managed Superannuation Fund) includes making investment decisions, such as trading US stocks. To achieve this, SMSF holders often require a brokerage account structured for US trading. Below, we provide a detailed guide on brokerage options, account setup, and the US trading activation process.

Overview of Brokerage Options for SMSFs

SMSF holders have the flexibility to choose from multiple brokerages for US trading. Some popular options include:

  • SelfWealth: Offers a cost-efficient solution with flat brokerage fees of $9.50 per trade, regardless of the trade size.
    Many SMSF holders find SelfWealth a practical choice.
    Grow SMSF can assist with setting up a trading account with Selfwealth.
    A default Selfwealth account is ASX-only, but once the account is open, you can add US-trading to the account. Grow can assist with the W8-BEN-E form.
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  • Interactive Brokers (IBKR): Interactive Brokers (IBKR) is an option for more experienced investors.
    Grow cannot assist with this account setup; you, as the SMSF trustee, will need to go through that process yourself.
    We also note that the IBKR SMSF account application process is intentionally challenging, meaning it may not be suitable for less experienced investments who have more simplistic needs.

Steps to Open a SelfWealth Account for SMSF Trading

If you opt for SelfWealth as your brokerage platform, here's the process to set up your account for SMSF trading:

  1. Default Setup for ASX Trading: Upon creating the account, it will initially be enabled for ASX trading by default.

  2. Activating US Trading: To activate the account for US stock trading, follow the steps below: - Complete a W8-BEN-E form. This form can be obtained from SelfWealth. - Sign the form with a "wet ink" signature. - Upload the signed form along with a schedule page from your SMSF deed if SelfWealth requests it.

  3. Approval Process: SelfWealth will review your uploaded documentation. Once these documents are successfully verified, your account will be approved for US trading. Note: You might need to directly request US trading access after account approval. Ensure you keep a copy of all submitted forms for your records.

Choosing the Right Broker

When deciding on a broker, consider the following factors:

  • Transaction Costs: Check for flat trading fees or percentage-based fees.

  • Accessibility: Whether the broker's platform aligns with your trading patterns.

  • Integration with SMSF: Ensure that the chosen brokerage service supports SMSFs and US trading requirements adequately.

Related Topics

By following the above steps, you can set up and activate a brokerage account that enables US stock trading while ensuring compliance with SMSF regulations.

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