Interactive Brokers US vs EU

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Topic Author
Guybrush
Posts: 3
Joined: Mon Dec 02, 2019 10:55 pm

Interactive Brokers US vs EU

Post by Guybrush » Mon Dec 02, 2019 11:24 pm

Hi all - I’m an old time grateful reader and first time commenter.

As a EU citizen living in the US that is planning to return to his home country within 5 years, I definitely consider IB as my future brokerage to manage my investments without worrying about US estate tax. However, I was wondering if there would be any issues if I open my account from the US at this point (don’t really need it to invest as I'm happy with Vanguard but to exchange some AUD from my previous work to USD). Which of these options would apply?
  • Once I open my IB account in the US I can’t change the account domicile to EU
  • I can change the IB US domicile to IB EU (not sure if that would be UK or DE) once I move back to Europe
  • IB US and EU work as separate entities so I’d need different accounts (hence having a US account wouldn’t make any difference)
Thank you!

imperia
Posts: 195
Joined: Tue Feb 21, 2017 6:31 am

Re: Interactive Brokers US vs EU

Post by imperia » Tue Dec 03, 2019 12:25 pm

Send email to IB and ask them.Thats is best option.

Topic Author
Guybrush
Posts: 3
Joined: Mon Dec 02, 2019 10:55 pm

Re: Interactive Brokers US vs EU

Post by Guybrush » Tue Dec 03, 2019 10:10 pm

Good point. In case it is helpful to anyone, this is their response:
If you open an account while living in the US, which would be under IBLLC US, once you move to the EU you would open an account under the IB entity for the EU, currently that is IB UK. Once that account is approved and opened, you would notify us and we would transfer your assets to your new account. The transfer would be done internally and have no fees.

Keep in mind if you open an IRA you would not be able maintain an IRA when you when you moved to Europe, unless you become a US citizen. You would be able to keep your assets, they just could not be in an IRA.

Vogatrice
Posts: 13
Joined: Mon Mar 25, 2019 4:56 pm

Re: Interactive Brokers US vs EU

Post by Vogatrice » Tue Dec 03, 2019 11:04 pm

how timely for me! I was going to call tomorrow to ask the same question. Thanks for posting the response!

TedSwippet
Posts: 2509
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Interactive Brokers US vs EU

Post by TedSwippet » Wed Dec 04, 2019 4:17 am

Guybrush wrote:
Tue Dec 03, 2019 10:10 pm
Good point. In case it is helpful to anyone, this is their response:
If you open an account while living in the US, which would be under IBLLC US, once you move to the EU you would open an account under the IB entity for the EU, currently that is IB UK. Once that account is approved and opened, you would notify us and we would transfer your assets to your new account. The transfer would be done internally and have no fees.

Keep in mind if you open an IRA you would not be able maintain an IRA when you when you moved to Europe, unless you become a US citizen. You would be able to keep your assets, they just could not be in an IRA.
Thanks for the update.

The final sentence above is a bit disappointing. I've always considered IB as a possible bolthole for if/when the likes of Fidelity and Vanguard decide that US tax laws and regulations have made nonresident aliens, who hold lingering 401ks and IRAs from time spent working in the US, too much trouble to have as customers. Sigh.

assyadh
Posts: 88
Joined: Tue Sep 18, 2018 12:44 pm

Re: Interactive Brokers US vs EU

Post by assyadh » Wed Dec 04, 2019 10:55 am

TedSwippet wrote:
Wed Dec 04, 2019 4:17 am
Guybrush wrote:
Tue Dec 03, 2019 10:10 pm
Good point. In case it is helpful to anyone, this is their response:
If you open an account while living in the US, which would be under IBLLC US, once you move to the EU you would open an account under the IB entity for the EU, currently that is IB UK. Once that account is approved and opened, you would notify us and we would transfer your assets to your new account. The transfer would be done internally and have no fees.

Keep in mind if you open an IRA you would not be able maintain an IRA when you when you moved to Europe, unless you become a US citizen. You would be able to keep your assets, they just could not be in an IRA.
Thanks for the update.

The final sentence above is a bit disappointing. I've always considered IB as a possible bolthole for if/when the likes of Fidelity and Vanguard decide that US tax laws and regulations have made nonresident aliens, who hold lingering 401ks and IRAs from time spent working in the US, too much trouble to have as customers. Sigh.
Yes, the last sentence is very disappointing. Only leaves Schwab as a viable option for NRAs

Topic Author
Guybrush
Posts: 3
Joined: Mon Dec 02, 2019 10:55 pm

Re: Interactive Brokers US vs EU

Post by Guybrush » Wed Dec 04, 2019 9:38 pm

assyadh wrote:
Wed Dec 04, 2019 10:55 am
TedSwippet wrote:
Wed Dec 04, 2019 4:17 am
Guybrush wrote:
Tue Dec 03, 2019 10:10 pm
Good point. In case it is helpful to anyone, this is their response:
If you open an account while living in the US, which would be under IBLLC US, once you move to the EU you would open an account under the IB entity for the EU, currently that is IB UK. Once that account is approved and opened, you would notify us and we would transfer your assets to your new account. The transfer would be done internally and have no fees.

Keep in mind if you open an IRA you would not be able maintain an IRA when you when you moved to Europe, unless you become a US citizen. You would be able to keep your assets, they just could not be in an IRA.
Thanks for the update.

The final sentence above is a bit disappointing. I've always considered IB as a possible bolthole for if/when the likes of Fidelity and Vanguard decide that US tax laws and regulations have made nonresident aliens, who hold lingering 401ks and IRAs from time spent working in the US, too much trouble to have as customers. Sigh.
Yes, the last sentence is very disappointing. Only leaves Schwab as a viable option for NRAs
@TedSwippet: Would you foresee any major mishap with having a dormant 401k and Roth IRA without proactively updating contact details and residency status at Vanguard? And do you know if Vanguard allows Roth conversion as a NRA?

@assyadh: Which Schwab account allows NRA to keep their IRAs (it seems the Global Account requires citizenship or residency)?

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