Dealing in overseas stocks

Can I deal in overseas stocks?

Yes, you can deal in US, Canadian and European stocks which settle via CREST in sterling in the form of CDIs.

What is a CDI?

A CDI is a CREST Depository Interest. CREST holds all international stocks in a pool in a local depository such as Clearstream for German stocks and DTC for US stocks. CREST then issues a CDI to each holder of the security, which can then be transferred in CREST just like a UK equity. There's nothing you need do.

Why are international securities held as CDIs?

It's not permitted under UK law to hold international securities in CREST. CDIs have been developed by CREST to allow UK investors to hold international securities while still allowing settlement through CREST.

Can CDIs be placed in an ISA?

Yes, but like UK stocks they must be listed on a recognised stock exchange. As an example, stocks quoted on the Neuer Markt (Germany) and the Nouveau Marché (France) aren't ISA eligible.

Are there any special requirements before I can deal in overseas stocks?

Yes, for US stocks only. Before you can deal in US stocks, you must complete and sign a W8-BEN form. This is a declaration of tax status required by the US Internal Revenue Service. It's valid for 3 calendar years from the year in which it's signed (so, for example, if signed during 2008 will be valid until 31 December 2011). You can download the W8-BEN from the Forms section or request it from the Customer Services by calling 0845 60 60 560.

How do I buy and sell overseas stocks?

The trade now tick icon indicates that an online trade is possible, though in some cases it must be completed by one of our dealers. The telephone icon indicates that dealing is via telephone only. The number for Customer Services is 0845 60 60 560. All overseas transactions are calculated and executed in sterling.

What is the IRS?

The International Retail Service (IRS) of the London Stock Exchange displays Sterling prices, provided by market makers, in major European and US stocks. The full index of these stocks is available in the Market View section of the website.

Can I place Limit or Stop orders on overseas stocks?

Yes, as long as the stock is listed on the IRS.

During what hours am I able to deal?

Customer Services operates from 8am to 6pm. You'll be able to deal during these hours where markets are open. US and Canadian markets are open from 2.30 pm to 9pm UK time (Note: phone orders taken until 6pm, online orders can be placed at any time); European markets open and close at similar times to the UK.

Any opening hours on UK bank holidays, where applicable, will be announced on the website and via secure message.

When are the markets open?

The UK market is open from 8am to 4.30 pm.

The US and Canadian markets are open from 2.30 pm to 9.00 pm UK time. You can place orders by phone until 6.00pm. Orders can be placed via the website until 9.00pm if the stock can be traded online.

The European markets open and close at similar times to the UK.

In what currency will the shares be quoted?

All market quotes are in sterling and are obtained at best execution for the type and size of deal.

How do I know what exchange rate I'm getting?

Our dealers can tell you the exchange rate being applied. Quotes are provided on a 'best execution' basis. Remember, changes in rates of exchange may have an adverse effect on the value of non-UK shares.

In what currency will my dividends be paid?

CREST receives dividends in local currency before conversion to sterling to credit to Lloyds TSB Share Dealing. We'll then process the payment and credit your account, in the same way as we do for UK dividends.

How will the shares be reflected in my portfolio?

Overseas securities will appear in your portfolio alongside domestic stocks. Values will be in sterling. Prices will be displayed in sterling for IRS-listed stocks and in the relevant local currency for all other stocks, with at least a fifteen minute delay during market hours.

Are the commission charges the same as those for UK stocks?

Commission for buying and selling US, European and Canadian stocks is the same as for UK Stocks. There are no additional charges for holding international shares in your Lloyds TSB Share Dealing account. Please see our Rates and Charges for further details.

How will corporate actions be processed?

Corporate actions will be processed in the same way as for UK stocks. You'll get a secure message with the details of the event and requesting your instructions if required. If you usually deal by phone, we'll send a letter with the relevant details.

See the FAQs on Corporate Actions for more information.

What is the settlement process?

Settlement is the same as for UK stocks except that international trades are settled using CREST Depository Interests (CDIs).