tag:blogger.com,1999:blog-5433839636644874439.post4645392900788577865..comments2024-03-04T13:37:11.022+00:00Comments on Canadian Financial DIY: Expat Canadians Investing While AbroadCanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5433839636644874439.post-72019091225461670672013-01-04T02:04:56.516+00:002013-01-04T02:04:56.516+00:00Many thanks for the information about Internaxx! (...Many thanks for the information about Internaxx! (now TD Direct International) As a Canadian Expat working in Africa, I was having a hard time to find an online brokerage since my Canadian Bank refused a brokerage account in view of being a non-resident. Now it seems I will be able to return to active stock trading. <br /><br />Best regards-Canadian Expat in Africanoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-48574939082036222772008-03-29T23:48:00.000+00:002008-03-29T23:48:00.000+00:00Anonymous, Probably the way forward is to look int...Anonymous, Probably the way forward is to look into opening an account with a brokerage company that welcomes offshore investors, such as Internaxx mentioned in in the first comment or in another of the many so-called tax haven countries. There is a very extensive list of countries and resources for each at http://www.escapeartist.com/global/investments.htm. I haven't really investigated but I am sure there are lots available, especially if the assets to be invested get into 7 figures. btw, it is legitimate for Canadians to move their money away from Canada and invest it elsewhere, only hiding and not reporting income for taxes is illegal.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-73676670311892512282008-03-29T18:51:00.000+00:002008-03-29T18:51:00.000+00:00Hi there. My son (18) is a Canadian citizen who ha...Hi there. My son (18) is a Canadian citizen who has over 7 figure USD invesetment in his name. Since 2 years ago, he has been attending a private highschool in the States and is away more than 183 days a year. Becuase his investment (bank GIC) is in Canada earning interest income, he reports income tax to Canadian government. He still has Medical Service Plan (BC) which he pays monthly premium. His banking/tax address is all in BC. We contacted an investment firm to look into buying bonds/stocks but were turned down as he's studying and living in the States. We visited a bank in the States and we were turned down because he is non-citizen/resident of US. When he turns 19 (age of majority in BC) does he have absolutely NO way to open an investment account with any other firms? Thank you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-26359521097530523392008-03-21T10:31:00.000+00:002008-03-21T10:31:00.000+00:00Rob, thanks for comment. Interesting your experien...Rob, thanks for comment. Interesting your experience with your broker. Why just disallowing mutual funds I wonder. Ah well, I have noticed a certain anomalies in my broker's operations too so I know to steer around them.<BR/><BR/>I have dealt with the "too many choices" investing challenge by going into broad market ETFs, which diversify away the individual company risk. <BR/><BR/>I don't think there is a perfect answer for the currency swings risk. There are currency-hedged ETFS that hold international (like XIN) and US (XSP) market equities but you lose some of the return with their associated extra costs. Being exposed to the currency sometimes is a benefit. Yesterday for instance a good bit of the gain in my model portfolio came from the drop in CAD vs USD and GBP. Over the past year, the strength of the CAD has been a big drag. How much it affects you when you retire would depend on where you spend your money - if all in Canada, then the risk is greatest; if partly in the US or Europe or elsewhere then a loss on holdings due to currency in CAD terms (i.e. because the CAD is strong) would be counter-balanced when you go abroad to spend the money (your strong CAD would buy more EUR for instance). I like the thought ... "honey, we have to go on holiday to hedge our currency risk" ;-)<BR/><BR/>The Canadians Resident Abroad book is worth buying, especially for the tax-related info as I said in my review back on Jan.15.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-47056075890748665492008-03-20T18:15:00.000+00:002008-03-20T18:15:00.000+00:00I've been a non resident of Canada for almost 10 y...I've been a non resident of Canada for almost 10 years and investing hasn't been a problem. My wife's locked in RSP is invested in a long term bond and I own several DRIP stocks, about the only restriction I've run into is I can't buy MF. I also, briefly, had a trading account with options express. No problem there.<BR/><BR/>Biggest issue I've been struggly with is where to invest. Do I invest in the euro zone, I wouldn't have a clue where to start, Canada yes DRIP stocks, but limited. US huge, but almost too many stocks to choose from also issues with currency risk. Currently my Euros go a long long way in Canada and the US but what happens when you retire. <BR/><BR/>There is a book for Canadians Resident Abroad, 4th Edition , <BR/>ISBN: L459-27885-1 I haven't read it so I'm not sure what it's about but it's only available via the publisher.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-82901737682730597892008-03-18T14:41:00.000+00:002008-03-18T14:41:00.000+00:00Thanks for the link to Internaxx. Had not heard of...Thanks for the link to Internaxx. Had not heard of them before. I'm sure others will be interested to check it out. It seems that the price of privacy is that Internaxx deducts tax on interest from fixed income investments per European regulations unless one provides them with proof of residence outside Europe, which I would suppose covers you.<BR/><BR/>TD Waterhouse UK (www.tdwaterhouse.co.uk) does offer an account for those with a UK address that allows direct trading on more or less the same exchanges. Since they do it in Luxembourg and the UK, maybe they could now consider offering such accounts in Canada too.<BR/><BR/>I'm sure the CRA would consider investment accounts as a secondary tie to Canada for purposes of establishing tax residency. A single secondary tie is not supposed to result in being considered resident, the criteria being an accumulation of ties that indicate a pre-ponderance of links to Canada over Japan. Keeping in mind that the CRA loves to collect taxes and therefore to consider you a resident of Canada, your caution is probably a wise thing, especially if you have a reasonable option for investing elsewhere.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-5433839636644874439.post-16632392757006004542008-03-17T16:22:00.000+00:002008-03-17T16:22:00.000+00:00I am a Canadian living in Japan! Nice to read that...I am a Canadian living in Japan! Nice to read that link you posted. I am struggling with the same issues. Considering right now opening an account with Internaxx (www.internaxx.lu) in Luxembourg which is a joint venture of TD Waterhouse and Fortis Bank. As an offshore online brokerage meant for international expats, it offers semi-low cost trading in Canada, US, much of Europe and some Asian exchanges. The fees are not that great but it is protected by excellent banking privacy laws in Luxembourg.<BR/><BR/>I don't really have any good options for investing in Canada from within Japan or anything similar I could find in Hong Kong. I want to keep my accounts outside of Canada for residency declaration reasons because I want to maintain 100% confidence in my non-residency in case of a future return to Canada. I also do not trust the United States as a domicile at this point. Options are pretty limited and many of them are with smaller organizations.Anonymousnoreply@blogger.com