Creating US Bank Account (STEP #2)

This is Part 3 in a series on creating US Bank Account.

Opening your account

Now the part you have been waiting for. How to actually open your account...

E*Trade offers two accounts and two different forms (this is where most people get tricked into thinking they can't open an account).

The first account is a Checking Account. Remember, Non-US residents can't open this account.

The second account is a Brokerage Account. It works just like a checking account. However, you also have the option to use it for investing (you don't have to invest; you can just use it as a checking account).

This account is available to residents and non-US residents. This brokerage account allows you to write US checks, have a VISA Platinum debit card, and full Internet banking. You can also ACH (direct deposit) funds from PayPal, 2Checkout.com, or any other US bank.

This is the account you will open.

As a non-US resident you will need to fill out the Brokerage Account applications forms which consist of 7 pages. You may download the form here or visit https://global.etrade.com/e/t/intl/page?nav=3&subnav=4&screen=1&language=en&country=gl

Please note it's not necessary to fill in the last page (page 7) of this form.

If you would like to be an options or stock trader, you may fill out page 7.

You need to complete W-8BEN from (provided in the application form), a photocopy of your passport with photo, and address proof: a recent (no older than 3 months) bank statement or utility bill that has your name and home address stated on it.

Tax will not be withheld from your deposits. Tax is only withheld if you make a profit on an investment made through E*Trade.

Remember that you are required to include some documents with your application form above.

So, these are steps to Open Your Account:

1. Download and complete the appropriate application form and W8-BEN form.
2. Prepare a photocopy of your passport or photo ID.
3. Prepare a photocopy of your recent (no older than 3 months) bank statement or utility bill that has your name and home address stated on it.
4. Send your completed application form including W8-BEN and photocopied document to E*TRADE.

Remember (again), you need to send your application documents to the appropriate address.

If you were Europe & Africa Residents, send your documents to US Account Applications E*TRADE Securities Limited 42nd Floor One Canada Square Canary Wharf London E14 5AA United Kingdom.

If you were Middle-East Residents, send your documents to US Trading E*TRADE Dubai International Financial Centre, The Gate Building, 12th Floor, Office 15, PO Box 121208, Dubai, UAE.

If you were Asia-Pacific Residents, send your documents to US Trading E*TRADE Securities(HK) Ltd. Suite 2401-12 Two Pacific Place, 88 Queensway, Admiralty, Hong Kong

When your account is opened, you will receive in the post your log in details.

To fund your account, you may send a wire transfer in US$ or Euro to E*TRADE Securities LLC.

Tax Related Information

Because you're not a U.S. citizen, you may be able to claim an exemption from withholding, or a reduced tax withholding rate, on earnings from your investments. To claim this exemption or reduction, you need to send a copy of W-8 BEN with your account application.

For more information about Forms W-8BEN, go to the IRS website to search for the following publications: IRS publications 'Withholding on Specific Income' and 'Withholding Exemptions and Reductions.'

You may see the complete information in the Account Information page.

In the next posting, I will tell you how to request your free debit card and check book.