Notice message :Turkish presidential election will be taken place on 24 June 2018 (local time). Please be aware of the forex market changes, especially for Turkish Lira and European Euro, and closely monitor your positions and ensure you have enough margin in the account.

Foreign Account Tax Compliance Act (FATCA)

What is FATCA?

FATCA stands for the Foreign Account Tax Compliance Act (FATCA). It was introduced in October 2009 and signed into law in March 2010 as part of Hiring Incentives to Restore Employment (HIRE) Act.

FATCA is designed to prevent tax-evasion by U.S. citizens or residents holding foreign accounts or offshore investments. Under the new FATCA regulations, foreign financial institutions (FFIs) must identify U.S. account holders as well as entities under U.S. control (i.e. U.S. persons having a substantial ownership interest in the entity) and provide the IRS with information on their assets, income payments and trade flows during the fiscal year. FATCA regulations generally become effective on or about July 1, 2014.

How does FATCA impact Rakuten Securities HK and its clients?

To be FATCA compliant, Rakuten Securities HK must register its own FFIs with the IRS. In addition, FATCA regulations require Rakuten Securities HK to review existing onboarding and withholding processes and enhance them to comply with the regulations.

As part of an enhanced client onboarding process, additional documentation may be requested for clients holding accounts at Rakuten Securities HK. For instance, Rakuten Securities HK may need to obtain tax forms (i.e. W9/W8 series documents) after July 1, 2014, from both new and existing accountholders in order to identify the client’s tax classification.

In what cases do I need to submit a Form W-9/W8-BEN/W8-BEN-E to Rakuten Securities HK?

In order to determine if tax withholding is applicable, Rakuten Securities HK must authenticate the residency of its accountholders. For instance, if an account is held by a non U.S. citizen or non U.S. registered business entity, Rakuten Securities HK may require a Certification of Foreign Status, such as Form W8-BEN or W8-BEN-E for the account. Similarly, if an account is held by a U.S. citizen, U.S. resident alien or U.S. business entity, the accountholder may be required to certify his/her tax status by completing a Form W-9.

How will I know what Form to complete?

U.S. citizens or corporations may complete a W-9 form.

Instructions for non-US citizens or corporations can be found in detail here, and are generally outlined below for your convenience:

  • W-8BEN – non-US individual (unless individual falls under below classification)
  • W-8BEN-E – non-US entity (unless entity falls under below classification)
  • W-8ECI – non-US person with claim that income is effectively connected with the conduct of a trade or business in the United States
  • W-8IMY – non-US intermediary, non-US flow-through entity, or non-US trust
  • W-8EXP – non-US government, international organizations, non-US central banks of issue, non-US tax-exempt organizations, non-US private foundations, or governments of US possessions

The outline provided above is not intended to be exhaustive and is not warranted or guaranteed by Rakuten Securities HK as to its completeness or accuracy. For assistance with selecting and completing the tax Form applicable to you, please consult a qualified tax professional.

Will Rakuten Securities HK withhold taxes on my account?

Under the new FATCA regulations, withholdable payments do not include foreign exchange payments. Although gains on foreign exchange contracts are generally reported to the IRS as gross proceeds, FATCA regulations appear to apply to proceeds from the sale or disposition of property capable of producing interest or dividends from sources within the United States. Of note, this is subject to change if FATCA regulations are amended or revised. Please consult a qualified tax professional for additional assistance.

What is an Intergovernmental Agreement or IGA?

An Intergovernmental Agreement (IGA) is a bilateral agreement between the U.S. government and a country’s tax authority that facilitates compliance with FATCA. More than 50 countries are currently negotiating an IGA.

  • In countries with a Model 1 IGA, FFIs will comply under local legislation and report to their local tax authority; in turn, the local tax authority will exchange information with IRS.
  • In countries with a Model 2 IGA, FFIs will comply with local legislation to enter into agreements with, and report directly to the IRS.

What is the timeline for FATCA?

Rakuten Securities HK is carefully analyzing the final regulations and IGAs. Current timelines indicate global compliance on or about July 1, 2014. Rakuten Securities HK will update the clients that are impacted by FATCA once details are finalized.

Where can I find more information about FATCA?

The IRS website offers additional information regarding FATCA compliance. You may also reference the U.S. Department of Treasury website for supplementary information on IGAs.

Ŧ Only available for clients who hold a Rakuten FX account.
¤ Fixed spreads are offered in Rakuten FX account during at least 95% of the time of the monthly core-time trading period (8am to 2am HKT of every trading day). Spreads shown above and in our website are for reference only and are not guaranteed and may widen beyond the average spreads depending on the market volatility, especially under circumstances of extremely low liquidity, news events or public holidays. Please always refer to the trading platforms for the most updated spreads.
ɞ Order execution rate is calculated based on the AS Streaming and Streaming trading orders in 10k or less order size with lower than 1 pip slippage setting in which were executed during the period between Jan 1 to Nov 1, 2017.
§ Rakuten Securities HK offers Trading Station platform through its partner FXCM.
※ Commission is charged per trade side on both open trade(s) and close trade(s). All commission fees may be subject to change from time to time without prior notice. Please always refer to the most updated Schedule of Standard Fees and Charges.
ʊ MARKETSPEED FX platform is the winner of “Online Forex Trading Platform” by Good Design Award in 2012.
To safeguard your trading account(s), you are highly recommended to set a strong password and change it regularly.

When executing customers’ trades, Rakuten Securities HK can be compensated in several ways, which include, but are not limited to: charging fixed lot-based commissions at the open and close of a trade, adding a markup to the spreads, acting as a counterparty in the transactions. As a result, Rakuten Securities HK’s interests may be in conflict with yours.

Rakuten Securities Hong Kong Limited (“Rakuten Securities HK” SFC CE Number: AIM232) is a wholly owned subsidiary of Rakuten Securities, Inc. (*) Rakuten Securities, Inc., one of the major online brokers in Japan, founded in 1999, is a subsidiary of Rakuten, Inc. (TOKYO: 4755).
The risk of loss in leveraged foreign exchange trading can be substantial. You may not be suitable as you may sustain losses in excess of your initial margin funds. Leverage can work against you. Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives. Do not speculate with capital that you cannot afford to lose. If you decide to trade products offered by Rakuten Securities HK, you must read and understand the information and disclosure provided by Rakuten Securities HK. Rakuten Securities HK may provide general commentary which is not intended as investment advice and must not be construed as such. Seek advice from a separate financial advisor. Rakuten Securities HK and Rakuten Group assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items contained within these materials. Read and understand the Terms and Conditions on Rakuten Securities HK’s website prior to taking further action.
Information Security on Internet: To protect your privacy, do not access your trading account via public or shared computer or save your password locally in any computer or mobile device after logging in. Rakuten Securities HK will never ask you to send any of your personal information such as account number and password to us directly via e-mails.
(*)Company Registration ID (in Japan): Kanto Local Finance Bureau (Financial Instruments Firms) No.195