Tax implications of investing via a US broker?

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bakedbean

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I've been researching my option for investments and a US online broker seems to be the best option (i've a pretty complicated situation - I'm Irish, I work for an American company but I live in the Caribbean).

Looking through the options, Charles Schwab seems to be one of the most user-friendly sites. One comment on the site does concern me though;

"As a general rule, non-U.S. citizens or residents who receive U.S. source income are subject to U.S. tax. As a brokerage firm located in the United States, Charles Schwab is required to withhold U.S. income tax for its non-U.S. customers on their U.S. source income."

I'm waiting on a reply back from CS to clarify this but I was wondering - does anyone have previous experience of a US broker withholding tax at source?
 
From my experience they would only have to withhold U.S. Tax if they didn't have your W-8 or W-9 form, If you provide them with that they should not need to withhold
 
Thanks hippy1975, I'll be submitting a W-8. Anyone else have a different experience with US brokers?
 
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