What are the Benefits of Opening a Brokerage Account in Another Part of the World?

Posted by: Joel    Posted Date: Thu, 05/09/2013 - 2:52pm

Categories: International Investments

Choosing how to protect your funds can be a complicated and personal decision. Let’s say you have over $250,000 in assets you’d like to keep safe; there are a number of strategies available to you.
 
You could open a foreign bank account to protect the money from a domestic economic crisis, for instance, or you could move your assets offshore to a foreign brokerage account.

Characteristics of a Foreign Brokerage Account

A foreign brokerage account is essentially the same as a foreign bank account, but it focuses primarily on non-U.S. stocks, bonds, mutual funds and other global investments you wouldn’t be able to access domestically. You can use this account to purchase stocks and securities in any country, regardless of where the account is located.
 
Plus, similar to a foreign bank account, it keeps your assets separate from domestic controls and economic downturns. This can ultimately be a very profitable investment for you.

Get Expert Advice from Local Brokers

What Nagel Law likes most about foreign brokerage accounts, however, is the opportunity they give our clients to obtain local expertise from brokers in different parts of the world.
 
Of course, you don't want to create an account in just any country; you'll need to be sure the location makes sense for your assets and future investments.
 
For example, if you’re planning to purchase IBM stock, opening a brokerage account in Singapore wouldn’t necessarily garner you the same benefits as opening a domestic account would. The foreign account will likely cost more, and your Singaporean broker won't have any special knowledge or understanding of IBM.

On the other hand, the same Singaporean broker probably does have a specialized understanding of the Singapore dollar. He or she more than likely knows quite a bit about emerging Southeast Asian economies and can expose you to a variety of stocks and bonds in that part of the world.
 
That localized exposure is where the real benefit of a foreign brokerage account lies; it gives you the ability to access global options through a knowledgeable source. We highly recommend a foreign brokerage account to clients who have the assets that allow them to make those types of investments.

At Nagel Law, we focus on providing our clients with a variety of wealth-protection options. Visit our website for more information on our top 15 global strategies to diversify your portfolio and keep your funds safe.