Author Topic: Discount brokerage for US expats?  (Read 1538 times)

dsugar

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Discount brokerage for US expats?
« on: June 22, 2018, 10:36:13 AM »
Can anyone recommend a discount brokerage that works with US expats?

I am a dual US/Canadian who is planning to move back to Canada next year. I have taxable and IRA accounts (all ETFs) with Vanguard in the US. Vanguard said they will "freeze" my account if I use a foreign mailing address, meaning I can keep my existing investments or make withdrawals, but can't make purchases or exchanges.

I have come across Schwab International and Interactive Brokers but don't have any experience with either. IB seems geared toward frequent traders which I am not.

I know there are full service cross border firms, but I'm not looking for that level of service or expense.

I'd also like to keep things above the board and not use a US mail forwarding service.

Phil Hogan, CPA, CA, CPA (Colorado)

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Re: Discount brokerage for US expats?
« Reply #1 on: June 23, 2018, 07:44:43 PM »
Hi Dsugar

It will be difficult to find a discount broker in Canada to handle your IRA. And as you mentioned below keeping it in the US is problematic. Considering how investment advisor rates have dropped you should be able to find a good cross border advisor to help with the IRA for around 1%.

In terms of your non-registered accounts you'll have some more options. Interactive brokers is a good choice if you're looking for very low fees and a great selection of security choices. However IB can be a lot for less experienced investors and the front end can be somewhat difficult to learn.

I'm a big fan of Questrade as I use them for a variety of accounts in Canada. They have a great selection of services and the fees are not too high.

Please let me know if you have further questions.

Cheers

Phil
« Last Edit: July 15, 2018, 08:57:01 AM by Phil Hogan, CPA, CA, CPA (Colorado) »
Phil Hogan, CPA, CA, CPA (Colorado)
250-381-2400
Hutcheson.ca
phil@hutcheson.ca
* The information contained in these posts should not be construed as professional advice and is for informational purposes onl

dsugar

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Re: Discount brokerage for US expats?
« Reply #2 on: June 28, 2018, 11:04:59 AM »
Thanks Phil.

I called Charles Schwab and they said that they will allow Canadian residents to keep any IRA accounts, but any taxable accounts must be liquidated or moved to another brokerage. Within the IRA account, they still allow you to make trades (unlike Vanguard). The only restriction is that you cannot hold mutual funds. Stocks or ETFs are okay.


Phil Hogan, CPA, CA, CPA (Colorado)

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Re: Discount brokerage for US expats?
« Reply #3 on: June 29, 2018, 07:49:48 AM »
Great, thanks for the info. Not sure how long they will continue with these rules, however good to know.

Phil
Phil Hogan, CPA, CA, CPA (Colorado)
250-381-2400
Hutcheson.ca
phil@hutcheson.ca
* The information contained in these posts should not be construed as professional advice and is for informational purposes onl