While having a local bank is important, there are many advantages to basing your investment account in America, even if you live and work abroad. Americans living overseas, and even non-Americans citizens, can benefit from having an American brokerage account.
How you can benefit too
Many folks appreciate the transparency and efficiency of the American markets (and possibly lower transaction fees) and the opportunity to profit from worldwide markets in both dollar and foreign currencies. Not only can U.S. brokerage accounts improve diversification, but they are protected by SIPC insurance. An additional advantage for Americans living abroad is that a U.S. brokerage account makes FBAR and IRS reporting requirements much easier. (To find out more about FBAR and U.S. tax reporting requirements for citizens living abroad, click here.)
How do I open an account from overseas?
Though some investment companies won’t work with U.S. expats or NRAs (non-resident aliens) due to the increased legal and compliance costs involved, there are firms who specialize in international audiences. Choosing to work with such a firm minimizes the paperwork involved.
Always make sure to specify your needs and requests. Certain personal circumstances, such as an inheritance, marriage, or a divorce, may mean that there are particular requirements for handling your account. Make sure to alert your advisor so that the paperwork will be properly coded for the most tax-efficient account.
For further information:
All of the above is simply an introduction to opening U.S. brokerage accounts from abroad. For more information, watch this video about brokerage accounts that I recently produced:
If you can’t see the video, click here to watch.
Douglas Goldstein, CFP®️ is the director of Profile Investment Services, Ltd. www.Profile-Financial.com He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published June 3, 2015.