Swiss-based financial services provider, Dukascopy Bank today announced receiving a Qualified Derivatives Dealer (QDD) status.
The official announcement said that the company obtained the QDD status through a US Internal Revenue Service agreement.
The newly obtained QDD status allows Dukascopy to make dividend-equivalent payments on US CFD instruments with the relevant amount of withholding tax deducted.
The company stated in the announcement:
The new status significantly improves the offering for both Trading and Multi-Currency Accounts (MCA) and allows account holders to keep positions over the ex-dividend date and benefit from the US-sourced dividends.
The mandatory withholding tax is currently set at 30% while Dukascopy Bank is further working on the improvement of the offering and implementation of the reduced tax rates under double tax treaties.
Dukascopy Bank also mentioned that it offers more than 300 US CFD instruments and the total number of international CFDs exceeds 600 instruments.
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