A list of Stock Brokers that will open accounts for offshore companies

[Outlander]

I haven't found an authoritative list in the Internet of brokers that will open accounts to offshore corporations. Specifically, I'm looking for something cheap and reliable for trading global stocks, and was told that Panama has some good options. Does anyone recommend a discount stock broker based in Panama that will open accounts for IBCs?

These are the ones that I have researched so far are:

• Interactive Brokers - US based, reliable, affordable, but strict KYC (they ask for proof of address for the company, which can't be the same as its Registered Agent's address)
• Charles Schwab - US based, traditional, but requires a steep minimum investment ($250,000 last I checked)
• Fidelity - US based, traditional, no minimum requirement, but requires the company director to go physically to a Fidelity branch in the US to open the account. The account opening form for businesses can be found here.
• Investors Europe - Mauritius based, they've been around since 2001. Overall seems legit but I found this old article with a serious complaint and an allegation that they're not actually registered in Mauritius, so I'm a little wary. To be fair, it's the only complaint that I've found and it's old. The requirements for account opening are here.

Does anyone have brokers to add to this list? I'm especially interested if you've used them.

 

[justnew]

I would like to know if that is possible too! If we can get such a setup opened it would make the live for many of us easier.

 

[froilo]

It greatly depends on your trading strategy and capital. I seriously doubt you get discount non scammy broker from Panama. If you are only medium and long term trader/investor that opens a hand full of positions withing few months then even panama may work. Otherwise their 1%+ commission will eat away massively your profits especially if you also trade in short horizons. If you are a day trader prolly forget about panama and look to Interactive B.

 

[Outlander]

froilo said:
It greatly depends on your trading strategy and capital. I seriously doubt you get discount non scammy broker from Panama. If you are only medium and long term trader/investor that opens a hand full of positions withing few months then even panama may work. Otherwise their 1%+ commission will eat away massively your profits especially if you also trade in short horizons. If you are a day trader prolly forget about panama and look to Interactive B.
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Not looking for day trades, mostly long term positions and occasional trades. InvestorsEurope wants to charge me roughly 0.30% per share, plus 0.1% p.a. custodian fees, plus $250 of FATCA bulls**t fees. Not a terrible deal but I'm finding their customer support abysmal.

 

[JustAnotherNomad]

I can't really help much, but just wanted to add that the location of the broker might have an impact on the taxes you need to pay. So you should check that too.

 

[Outlander]

JustAnotherNomad said:
I can't really help much, but just wanted to add that the location of the broker might have an impact on the taxes you need to pay. So you should check that too.
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Not only the location but the qualification. I have a personal brokerage account in the US, and dividends from US companies are taxed 30% automatically.

When I asked Investors Europe if my company would be taxed the same for receiving US dividends, they says that YES; however, only until they became a "Qualified Intermediary" with the IRS - a kind of complex certification that allows them to certify their clients aren't US persons and not taxable in the US. They said this certification would come by end of the year.

 

[JustAnotherNomad]

It would still depend on your tax residency.
If there is no US tax treaty, you would still have to pay the 30%.
If there is a treaty, you can already apply for a refund from the IRS.

 

[onemansomewhere]

Saxo Bank - good, reasonable fees, minimum investment 10K USD
Multibank - local one, very expensive, minimum investment 100K USD
Banco General - local one, reasonable fees, just for citizens and long time permanent residents and their companies
Swissquote - higher fees, minimum investment 10K USD
Royal Fidelity (Not a Fidelity in US) - little bit higher fees, minimum investment 10K USD

 

[jkl197]

you could also check Tradestation, similar to Fidelity, they have specific commission plan (reasonable) for foreing entities/persons, only downside you will have to pay for the data feed in real time (if needed)

 

[russelw65]

Would also be interested in building up a list of these. What did you go with Outlander?
I trade equities/stocks (mainly UK listed), but very infrequently so commission % per trade does not bother me too much if I getting a good platform and customer service

 

[Outlander]

russelw65 said:
Would also be interested in building up a list of these. What did you go with Outlander?
I trade equities/stocks (mainly UK listed), but very infrequently so commission % per trade does not bother me too much if I getting a good platform and customer service
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I have a personal IB account and gave up on the corporate one due to KYC.

Now I'm trying Saxo Bank and Investors Europe, but haven't managed to open yet.

 

[russelw65]

@Outlander just wondering how you got on with SAXO and Investors Europe? Good experience? Thanks

 

[Outlander]

russelw65 said:
@Outlander just wondering how you got on with SAXO and Investors Europe? Good experience? Thanks
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Saxo Bank ignored my application and subsequent emails to customer service entirely.

Investors Europe - took a while, but now opened and funded, although haven't traded yet. Big plus - you can talk them into taking Transferwise as long as from your own account.

Someone mentioned in another thread that Saxo actually owns Investors Europe. I don't have confirmation about that.