US Tax Question

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1

I am a foreigner(Malaysian). I am planning to trade forex and of course via online with one of those US brokers.

My concern is are we foreigners subject to US taxation or exempted. I have gone through the IRS website and I find it intimidating for my comprehension. The brokers themselves display “handle it yourself” attitude. They require us to submit Form W-8BEN? What is that form used for?

I would be pleased if someone could provide a simple, step by step explaination. Thanks in advance.

Malaysiantrader.

2

Hi,

I am from Europe and as the US broker firm told me to take care of the tax issues according to my resident country’s tax rules - I will do so.

So I understood this way: there is no need to pay the tax in the US when you are foreign citizen and dealing with a US registered broker firm.

Regards,

Piper