Offshore Brokerage Account

Anyone who wishes to build his or her portfolio can do so by opening an offshore brokerage account. By establishing this account, you are able to appoint a professional to trade stocks, bonds and other forms of securities on your behalf according to your instructions.

To have an offshore brokerage account managed by a broker, it is normal for a fee or commission to be paid. This could be calculated as a fixed fee, either monthly or annually, or per trade and calculated as a percentage of returns made on each trade. The commissions paid for offshore brokerage accounts could range and can be influenced on whether the broker is a traditional broker who makes several types of financial, investment and counseling services available and charge accordingly for their professionalism and sophistication; or whether the broker is a discount broker whose aim is to provide a personalized service for the client, but do not give advice to the offshore brokerage account holders as traditional brokers would do. They therefore charge less than the traditional broker would. Larger offshore brokerage firms would be able to offer both discount and traditional brokerage services. Thus, customers have a choice between the two types of services.

Offshore brokerage accounts come with different terms and conditions to which the customer would be required to comply. The minimum investments that are required for brokerage accounts offshore differ in amount since brokerage firms might have different policies. Lower minimum investment balances allow small investors to start off and eventually grow their portfolio, whereas higher minimum balances might be more demanding for individuals who might not have the financial backing to start off any offshore investment venture.

It is always wise to seek information before opening an offshore account. This is to ensure that as an investor you understand what investing offshore is about, as well as the risks and advantages involved. It is possible to seek information pertaining to best practices in terms of how you should manage your offshore brokerage account. It is important to know whether or not the brokerage firm you are going to be dealing with is regulated and has a team of professionals that is able to help you grow your offshore investments and manage your offshore brokerage account.

Once an offshore brokerage account has been opened, the option to have money transferred from an account at a specific bank exists. This can be done in the very same way in which standing orders are made to have funds paid to one account to another, regardless of whether they are internal or external accounts. Once this is established, a clear offshore investment plan can be devised and offshore investments through a brokerage account offshore can be a regular and organised activity.

One of the benefits of having an offshore brokerage account has to do with finding security elsewhere. This is closely linked with the general concept of going offshore in that, similar to managing an offshore company, such as Panama company, or bank account, an offshore brokerage account can be used to protect assets, to avoid putting all of your eggs in one basket at home and to achieve more privacy when conducting personal financial business. The current global meltdown is a perfect example of the importance of venturing out to offshore markets to invest, so as to avoid losing all for all if any major event were to negatively impact the local stock market. Besides opening and managing brokerage accounts offshore, understanding how returns generated can be reinvested by being placed into an offshore trust or transferred to an offshore company. This helps in tax and estate planning, as well as in protecting assets. Since offshore banks and companies are not taxed in the offshore jurisdictions in which they are incorporated, thus permitting offshore banks and other agencies to not pass on tax to the offshore investment and banking activities of their customers besides the fees paid.

Opening an offshore brokerage account has a lot to do with planning for the future, with regard to sending children to school, building a house or setting up a pension plan for retirement. As long as an informed decision can be taken and proper advice is sought, having an offshore brokerage account should produce very desirable results.

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