Chapter 13 Choosing Your Offshore Brokerage—For Non-Americans

If you're capable of controlling your emotions, the cheapest and most profitable way to build an index portfolio is to do it yourself. Consider how much time you spend cutting your toenails each year. I’m not talking about sculpting them, just clipping them down once a month. Anyone spending more time maintaining an index fund portfolio is doing something wrong.

All you need is a discount brokerage account. Ensure you can open and manage the account regardless of where you happen to be living. Second, brokerage costs should be low. Ensure your account is located where the government is stable and where banking regulations are solid. Finally, if you live where offshore investments won't be taxed (confirm with a tax accountant), choose an offshore brokerage located where the authorities won't charge capital gains taxes.

Here are three such examples for non-American expatriates: DBS Vickers Securities, based in Singapore; TD Direct Investing International, based in Luxembourg; and Saxo Capital Markets, located in more than 20 worldwide locations, including Hong Kong, Singapore, Uruguay, and the United Arab Emirates.

DBS Vickers Securities Opens the Door to Everyone

Some brokerages discriminate against expatriates living in certain countries, not allowing them to open accounts. But Singapore's DBS Vickers isn't one of them.

“Any non-American expat can open an account as long as they meet the management subject of approval,” ...

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