European resident of DR wants to buy/sell US stocks

CFA123

Silver
May 29, 2004
3,500
381
83
Any European citizens out there, resident in DR, who have managed to open a brokerage account from DR and are successfully buying/selling U.S. stocks? I have a friend attempting to do so. Any suggestions on how to accomplish it?

Situation:
  1. European citizen, long time legal resident of DR
  2. has existing U.S. bank account, but brokerage arm of the bank will not accept as a client due to DR residency
  3. thought he'd go with Charles Schwabb, but was told that as of 2014 not accepting clients from Dominican Republic
  4. might consider Germany, but even opening a basic bank account there was difficult due to non-resident status in Germany
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
Any European citizens out there, resident in DR, who have managed to open a brokerage account from DR and are successfully buying/selling U.S. stocks? I have a friend attempting to do so. Any suggestions on how to accomplish it?

Situation:
  1. European citizen, long time legal resident of DR
  2. has existing U.S. bank account, but brokerage arm of the bank will not accept as a client due to DR residency
  3. thought he'd go with Charles Schwabb, but was told that as of 2014 not accepting clients from Dominican Republic
  4. might consider Germany, but even opening a basic bank account there was difficult due to non-resident status in Germany

I would check out Saxo Bank in Denmark or Strateo in Switzerland. Both will allow you to trade U.S. Stocks. Being that you are an EU Citizen residing outside the EU, probably you have no tax obligation to the EU, but tax obligation to your domicile in the DR.

The U.S. would be an even better option possibly, but it sounds like they have tightened things up considerably. Have you checked Schwab International? Fidelity? Interactive Brokers?

TD Waterhouse in Canada might be another option-also, TD International in Luxembourg.
 

Contango

Banned
Dec 27, 2010
2,196
5
0
There are NO discount brokerages in the DR.. If you find one let me know... would love to keep all my cap gains tax free...:pirate:
 

tht

Master of my own fate.
Oct 10, 2002
777
103
63
I have an investments account with Citibank where I can place trades on NYSE and Nasdaq, mutual funds etc. I can do through my broker. I'm European with a DR residency. I use a US mailing address but had to sign a form explaining my US mailing address (Dominican postal service unreliable). How easy it is to open any account with Citibank I don't know, I've been a Citibank client since -98. I file a W8 form and I pay no US tax on capital gain.
 

CFA123

Silver
May 29, 2004
3,500
381
83
I would check out Saxo Bank in Denmark or Strateo in Switzerland. Both will allow you to trade U.S. Stocks. Being that you are an EU Citizen residing outside the EU, probably you have no tax obligation to the EU, but tax obligation to your domicile in the DR.

The U.S. would be an even better option possibly, but it sounds like they have tightened things up considerably. Have you checked Schwab International? Fidelity? Interactive Brokers?

TD Waterhouse in Canada might be another option-also, TD International in Luxembourg.

Thanks for the suggestions Jimmy.

He's telling me that Schwab International, Fidelity, Interactive Brokers all say no to DR residents, same Etrade, Scottrade or any major online U.S. broker

I passed along your suggestions and he will check Denmark & Switzerland like suggested.
 

CFA123

Silver
May 29, 2004
3,500
381
83
I have an investments account with Citibank where I can place trades on NYSE and Nasdaq, mutual funds etc. I can do through my broker. I'm European with a DR residency. I use a US mailing address but had to sign a form explaining my US mailing address (Dominican postal service unreliable). How easy it is to open any account with Citibank I don't know, I've been a Citibank client since -98. I file a W8 form and I pay no US tax on capital gain.

Thanks, tht.
The brokers that last year would open an account now won't. Perhaps you've been grandfathered in.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
Thanks for the suggestions Jimmy.

He's telling me that Schwab International, Fidelity, Interactive Brokers all say no to DR residents, same Etrade, Scottrade or any major online U.S. broker

I passed along your suggestions and he will check Denmark & Switzerland like suggested.

Please let us know what is the outcome with the Euro brokers-It may be possible that you could open the account in the U.S, but you need to have an address there to do so at this point.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
Thanks, tht.
The brokers that last year would open an account now won't. Perhaps you've been grandfathered in.

I believe that this is the case-with new regs opening a new account with even the postal box address in the U.S. might be a problem as the brokers and banks deem that to be what they call a 'warm address'.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
Thanks for the suggestions Jimmy.

He's telling me that Schwab International, Fidelity, Interactive Brokers all say no to DR residents, same Etrade, Scottrade or any major online U.S. broker

I passed along your suggestions and he will check Denmark & Switzerland like suggested.

Any update?
 

CFA123

Silver
May 29, 2004
3,500
381
83
No go on any u.s. based brokers. He looked at forming a Florida LLC and investing through it but corporate and tax reporting were scary.

What he's looking at now is onetradex.com in the Cayman Islands. I couldn't give my approval of the idea as the company has only been in existence since the first of this year. That said, it was formed to help people in exactly this situation. I'd not sleep well with my money there, but they could well be legitimate and be in business 100 yrs from now.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
No go on any u.s. based brokers. He looked at forming a Florida LLC and investing through it but corporate and tax reporting were scary.

What he's looking at now is onetradex.com in the Cayman Islands. I couldn't give my approval of the idea as the company has only been in existence since the first of this year. That said, it was formed to help people in exactly this situation. I'd not sleep well with my money there, but they could well be legitimate and be in business 100 yrs from now.

It is very difficult now to open a corporate structure account at most brokerage firms anywhere in the world. The amount of paperwork now is daunting to say the least. There was a time when it was much easier, but that is long past gone. A Florida LLC is no good-Your friend would be better suited with a WY corporate structure, but who knows if you can open an account at any of the brokerage house now with their heavy requirements.
 

CFA123

Silver
May 29, 2004
3,500
381
83
Thanks for the comments, Jimmy. I will once again pass them along. At least it is confirming what he is finding on his own. I think he's going to put a small amount with onetradex and see how it goes.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
Thanks for the comments, Jimmy. I will once again pass them along. At least it is confirming what he is finding on his own. I think he's going to put a small amount with onetradex and see how it goes.

Another one is PanamaWallStreet in Panama-They were known previously as Thales Traders/Thales Securities. A couple Danes that started a brokerage there around the early 2000's. Opening an account in Panama is quite difficult, but being that your friend is from Europe, it might be not so difficult and you can trade just about everything because they use Saxo Bank from last I remember.
 

william webster

Platinum
Jan 16, 2009
28,307
3,175
113
you need to go to a low tax/no tax zone..... Turks/Caicos, or another island, like minded.... or the Channel Islands

account openings are well scrutinized.......but legal

start by establishing a local corporation then you can pass that on to your asset manager or do it yourself maybe.

not that tough as I understand it.....