Starting a foreign online brokerage account has never been easier, and it provides an easy way to avoid paying capital gains taxes—that is, when they don’t apply to a particular international country, which they often don’t. Opening a foreign brokerage account also allows for versatility of investment, so you’re able to buy securities internationally, in the U.S., and within the same country the account is held.

The first step is to decide on a reputable online brokerage in the country where you want to start an account. It’s always wise to look over their terms and conditions, as well as compare their fees with competitors. One drawback is the fact that many foreign online brokers don’t offer trial accounts, nor are there usually many reviews of their services online.

Make sure to find out how exactly you’ll be taxed by contacting a tax lawyer. Finding out sooner than later about the minutiae of international trading may prevent major headaches in the future. For instance, you are required to declare to the IRS any foreign brokerage accounts exceeding $10,000. Often, though, capital gains taxes are not applicable. Moving your money into a domestic account will cost international wire transfer fees, and it’s prudent to find out their cost.

A good option may be to have your brokerage account opened by a foreign trading company, seeing as taxpaying obligations often become less burdensome when doing so. For instance, if you plan to open a brokerage account in Belize, it might expedite affairs to first have a Belizean corporation start that account for you.

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