On opening a Vanguard account from Mexico

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Topic Author
Chepperchops
Posts: 11
Joined: Wed Aug 03, 2011 9:58 pm

On opening a Vanguard account from Mexico

Post by Chepperchops »

Hello Bogleheads!

I'm really interested in opening a Vanguard account, but seeing as how I'm Mexican (living in Mexico) I'm not sure it'd be convenient.

Is this (legally) viable? I was thinking, I have a lot of friends/family in the US who I can trust.

-Would it be legal (and doable) If one of them opened an account and I managed it? I'd be making deposits from my Mexican bank. I most definitely don't want to get in trouble for it, especially since I'm in it for the long haul.

-What kind of account would it have to be? Probably a standard taxable account, correct? Otherwise I'd screw him over by taking over his IRA, right?

-What if he didn't care for his IRA, would it still work? I probably wouldn't do it anyway but it'd be nice to get tax breaks.

-Am I better of just trying to find a way to open my own account?

Thanks in advance. I'm aware I might be breaking rules by posting this, let me know if I am so I can delete it.

Cheers.
Last edited by Chepperchops on Sun Aug 21, 2011 9:09 pm, edited 2 times in total.
livesoft
Posts: 80590
Joined: Thu Mar 01, 2007 8:00 pm

Post by livesoft »

You might get more specific responses if you changed the thread title to something like:

"Opening Vanguard account from Mexico"

I think there are some notes in the Bogleheads wiki about investing with Vanguard from outside the US.
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Topic Author
Chepperchops
Posts: 11
Joined: Wed Aug 03, 2011 9:58 pm

Post by Chepperchops »

Right, I didn't wanna exclude those from other countries since I can see this applying everywhere else too. Something about nearing 20k posts tell me you know better though, I think I'll listen to you heh.

Time to scour the wiki! Thanks!
livesoft
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Post by livesoft »

How do Mexicans invest in mutual funds and exchange-traded funds? Do they have access to low-cost online brokers? Can you simply buy ETFs such as those from Vanguard through your normal broker in Mexico?
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Topic Author
Chepperchops
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Joined: Wed Aug 03, 2011 9:58 pm

Post by Chepperchops »

There are brokerage houses and a handful of online sites (owned by banks) which you can use to buy Vanguard ETF's.

The cheapest (and it doesn't strike me as cheap) I've found is Blink! by Banamex, which is Citigroup's Mexican Bank. Its charges no monthly maintenance costs, and commissions per trade are either $100 MXN (around $8.5 US) + 0.5% or 1.7%, whichever is lower.

Is that expensive? It's my best option thus far. The other two options charge similarly. It feels kinda steep to me, does it compare to American brokers?

I'll have to factor in how much money it costs to deposit from my bank into my Vanguard account (Does anyone happen to know? I guess it can be considered an international transfer). It may end up being more expensive and I'll just have to deal with a more limited array.
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MossySF
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Post by MossySF »

Chepperchops wrote:The cheapest (and it doesn't strike me as cheap) I've found is Blink! by Banamex, which is Citigroup's Mexican Bank. Its charges no monthly maintenance costs, and commissions per trade are either $100 MXN (around $8.5 US) + 0.5% or 1.7%, whichever is lower.
This is about par to U.S. brokerages 5 years back so it's not that bad.
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