IBKR, IBCs, and LATAM

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
User avatar
Topic Author
galeno
Posts: 2689
Joined: Fri Dec 21, 2007 11:06 am

IBKR, IBCs, and LATAM

Post by galeno »

Hello all it's been a while since I posted here.

We used to have a corporate account with IBKR using a Panamanian SA, AKA IBC. IBKR does not accept corporate accounts from LATAM. So we had to go direct joint account. We really liked the corp account.

We're looking to form an IBC or SA that is acceptable to IBKR. We've tried the BVI but they are a pain, expensive, and seem shady. An Israeli I know told me to look at the Cayman Islands.

Has any LATAM Boglehead been able to open or maintain a corp account with IBKR? Help.
KISS & STC.
pertheri
Posts: 36
Joined: Fri Aug 19, 2022 2:20 pm

Re: IBKR, IBCs, and LATAM

Post by pertheri »

Hey galeno! I managed setup IBKR with a BVI entity, but going "retail" with this is a real hassle. IBKR won’t give you any trouble with your IBC account, but the big challenge is banking. Opening USD bank accounts in the U.S. for a BVI entity is very difficult, and when you do find a bank willing to work with you, they charge exorbitant fees.

In your situation, if you have a USD bank account in Costa Rica under the IBC’s name, you might be able to fund your IBKR account. Just avoid Panama—they’re not too keen on it unless you’re domiciled there. My understanding is that they’re fine with LATAM entities as long as the entity and your domicile are in the same country.

I bet what I said previously also applies for Cayman.

The best solution I found was with private banking. The downside is that it’s more expensive than IBKR and has higher capital requirements. The upside is that everything runs smoothly, and they’re willing to understand your specific circumstances.
User avatar
Topic Author
galeno
Posts: 2689
Joined: Fri Dec 21, 2007 11:06 am

Re: IBKR, IBCs, and LATAM

Post by galeno »

The currency of the BVI is the USD. Why can't your IBS open a bank account or three? Why do you need a US bank account?
KISS & STC.
User avatar
Topic Author
galeno
Posts: 2689
Joined: Fri Dec 21, 2007 11:06 am

Re: IBKR, IBCs, and LATAM

Post by galeno »

It looks like IBKR MAY accept corporate accounts from Costa Rican corporations.

If so we'll call our attorney and set one up and go back to a corporate account with IBKR. I'll ask her if a CR corp would serve non-CR citizens and residents.

Foreign sourced income is not taxed in CR.
KISS & STC.
Post Reply