Buying US ETFs with "retail client" status

[basila]

Hi everyone!

I am a Cyprus resident with non-EU passport, and I would like to buy some US ETFs (VT, QQQ, RYLD, etc).

I opened an account with Saxo Bank, but unfortunately they forbid me to buy such ETFs because I am a "retail client".

Please advise a reliable broker / bank that will allow to do so?

Is it possible through the SwissQuote CH?

Thanks.

Last edited: Dec 23, 2021

 

[Larin]

Hello!

Unfortunately, due to MIFID 2 regulations, retail clients in Europe are unable to buy non-MIFID2-compliant ETFs (for their own protection no less!), which many of the US ETFs are.

However, MIFID 2 also allows retail clients to elect to be treated as professional investors (who are not protected, and therefore can trade all instruments) provided they meet certain criteria. Generally, this means two of the following:
- Portfolio size of at least €500k
- Trading history of at least 10 significant transactions per quarter for 4 quarters
- Possess significant financial knowledge and expertise

https://marcuardheritage.com/app/up...ories_and_their_differences_in_protection.pdf
Brokers will generally have slightly different evidentiary requirements to demonstrate the above.

I know that Interactive Broker (Interactive Brokers Ireland Limited ”“ MiFID Categorisation | IB Knowledge Base) has a process for this, and I know that Charles Schwab International doesn't do it anymore. But, you may want to call around and see if others might do it, provided you meet the criteria above.

If you do not meet the criteria, your best bet is either to move outside of MIFID 2 jurisdiction (Europe), or find a broker thats based entirely outside of Europe and doesn't care to be in breach of European Regulations (I am unfortunately unaware of any).

Hope this helps.

 

[JackAlabama]

basila said:
Hi everyone!

I am a Cyprus resident with non-EU passport, and I would like to buy some US ETFs (VT, QQQ, RYLD, etc).

I opened an account with Saxo Bank, but unfortunately they forbid me to buy such ETFs because I am a "retail client".

Please advise a reliable broker / bank that will allow to do so?

Is it possible through the SwissQuote CH?

Thanks.
Click to expand...

It is always nice having the gov tell you and restrict you for your own good and protection 😉
Either abandon Europe alltogether (seems a good idea) or you can use DeFi products and buy synthetic crypto based alternatives tracking these etfs.
It is not the same of course, but the only alternative if you a) don't want / cant move or b) cannot meet the criteria which seem to be pretty high for most people just wanna buy some usa etf.
I doubt Switzerland and any company domiciled there will help you as non-swiss resident evade the nightmare of eu rules.

Eventually you could setup a USA LLC, open business bank for that and IB account and it might work (I have no experience in this).

 

[Silvio]

I believe on SwissQuote you can trade any ETF you want

 

[JackAlabama]

maxmmm said:
I believe on SwissQuote you can trade any ETF you want
Click to expand...

Is that not depending on your residency you have on file with them?

 

[jakubko666]

As retail you can buy in the money put options (or something like that, I am really not in options trading) and you will get that us etf on option expiry date. Read this in IBKR reddit community.

 

[Larin]

It seems Tastyworks (Options Trading, Futures & Stock Trading Brokerage) allows unrestricted trading for EU residents (europoor.com - Buy U.S. ETFs from Europe - ARKK, UPRO, QQQJ...) . I haven't used them, so can't comment on how good they are.

 

[startfleetio]

JackAlabama said:
It is always nice having the gov tell you and restrict you for your own good and protection 😉
Either abandon Europe alltogether (seems a good idea) or you can use DeFi products and buy synthetic crypto based alternatives tracking these etfs.
It is not the same of course, but the only alternative if you a) don't want / cant move or b) cannot meet the criteria which seem to be pretty high for most people just wanna buy some usa etf.
I doubt Switzerland and any company domiciled there will help you as non-swiss resident evade the nightmare of eu rules.

Eventually you could setup a USA LLC, open business bank for that and IB account and it might work (I have no experience in this).
Click to expand...

It is true, it is easy to get IBKR with US LLC.

 

[celizo]

Tastyworks and Tradestation (not "Tradestation Global").
Both used for buying US Etfs (ie SPY, VT...) as UE resident.