Stock Brokers outside the United States U.S.

[American Psycho]

Currently researching opening a brokerage account with a company outside the US. Any recommendations as to what jurisdiction/s to go for and possible companies?

[Modee]

I think one reason to use such a broker is if you need to do something like short penny stocks, which the standard U.S. brokers do not allow shorting of penny stocks. Other reasons might be that the non-U.S. brokers require much lower minimum balances for certain types of trades, such as for pattern day trading, and that the overseas brokers give you greater margin leverage against your funds.

I do not trade pennies actively, maintain very high account balances and don't really need the extra margin power, so I have no need of an outside U.S. broker, and have no personal experience with them. The main one I have heard of is SureTrader, registered in the Bahamas.

If you do your homework, you will find that places like SureTrader have much lower customer satisfaction ratings than places like, for example TD Ameritrade, or OptionsHouse.

Again, if I were in the U.S., unless I needed to overcome the issues noted above, I would stick with something like OptionsHouse.

[American Psycho]

I wasn't thinking for any of those reasons. Just from the point of view of expanding funds beyond the easy reach of Uncle Sam, or at least beyond arms length. The general advice now seems to be that all those classic tax havens like the Bahamas are to be avoided. Even if you're following all the rules I think it's a good idea to have funds stored safely away in case the government decides to come after you.