Brokerage Firms US Expats

[MJKT2014]

My online US broker put a restriction on my account until I phoned in to confirm I had alternated internet service providers? I was in Thailand all the time and they wanted to know why I was changing from TOT to True? I explained as I moved around and used mobile data access. That explained they returned my full service again. No VPNs needed. I am loathed to try a VPN incase they restrict my account again.

[jmsthailand]

11 hours ago, mshs said:

Don't see why you are so hung up on VPN.  If that is an attempt to hide your location from the brokerage and the brokerage assumes it is US and does/does not report to the IRS, that is all for nothing!

 

Presumably, you are trying to deny them the opportunity to prove your residence/your domicile.  Even if they had the tech to trace the VPN (which they and the likes of the NSA might), they will not.  Because once you get on the wrong side of Uncle Sam and despite the praying/hoping you got caught, you are guilty until proven innocent. 

  

 

I don't think using a VPN has any bearing on your relationship with the IRS. The IRS can easily obtain a copy of your travel history based on your US passport, and so they'll know that you weren't, in fact, in the US despite what your VPN might say. That's if they were even interested in your using a VPN, which they're not. Using a VPN is just about being able to continue to use your preferred US brokerage firm without being blacklisted.

[jmsthailand]

2 hours ago, OneZero said:

But why? I'm sure there is a valid reason, at least from their perspective.  What is it?

Part of it has to do, I think, with mutual funds that cannot be sold across borders. The other part is them probably trying to reduce their liabilities in different jurisdictions.

[Jingthing]

2 hours ago, MJKT2014 said:

My online US broker put a restriction on my account until I phoned in to confirm I had alternated internet service providers? I was in Thailand all the time and they wanted to know why I was changing from TOT to True? I explained as I moved around and used mobile data access. That explained they returned my full service again. No VPNs needed. I am loathed to try a VPN incase they restrict my account again.

Yes. There is no foolproof method to avoid problems and also firms do change their policies. 

 

Two questions. 

 

Which brokerage? 

 

Are you declared as living abroad with them or only traveling? 

 

How do I deal with this? 

 

You'll laugh. 

 

Somewhere in the US is a Linux laptop hibernated in a closet. I can turn it on by logging into the network router there and then login using TeamViewer. 

 

Linux rather than windows because windows is a nightmare with updates. 

Edited January 7, 2020 by Jingthing

[MJKT2014]

6 hours ago, Jingthing said:

Which brokerage? 

 

Are you declared as living abroad with them or only traveling? 

Its Etrade and they let me use a home address in Thailand, I can also fill in W8-BEN forms online with them every 3 years to declare non US citizenship to stop any capital gains tax. Been with them and their heritage companies dating back to PFC Online which was part of AOL since the 1990s.

[Jingthing]

2 minutes ago, MJKT2014 said:

Its Etrade and they let me use a home address in Thailand, I can also fill in W8-BEN forms online with them every 3 years to declare non US citizenship to stop any capital gains tax. Been with them and their heritage companies dating back to PFC Online which was part of AOL since the 1990s.

So you're not a U.S. citizen? That would be a different situation.

[cmarshall]

15 hours ago, Jingthing said:

Somewhere in the US is a Linux laptop hibernated in a closet. I can turn it on by logging into the network router there and then login using TeamViewer. 

 

Linux rather than windows because windows is a nightmare with updates. 

If you have linux skills you can accomplish the same thing with a raspberry pi and openvpn.

[Jingthing]

3 hours ago, cmarshall said:

If you have linux skills you can accomplish the same thing with a raspberry pi and openvpn.

I really don't but tell me more. 

[cmarshall]

21 hours ago, Jingthing said:

I really don't but tell me more. 

You install an operating system on a raspberry pi (such as a 3B+.)  The popular choice for the OS is raspbian, but there are others.  Then you install openvpn and configure your own openvpn server.  Then you open a port on the router to allow the openvpn traffic through.  Then you get a free account at dynu.com that will provide you with a dynamic domain name service server name, such as myserver.dynu.com.  Then you install and configure ddclient to update dynu.com every 10 minutes with the current ip of the router, which is subject to change.  Then you configure the vpn client in your laptop and now you have a private vpn with a residential ip that Netflix won't flag as a vpn.

 

This project purports to do all the openvpn configuration with a single command:

 

https://pivpn.dev/

 

I haven't used it myself.  If you search "raspberry pi openvpn server" you can find lots of recipes to accomplish the above.  An rpi costs about $35 plus a case and a power supply.  If you send it by DHL that's another $65 or so.  Thai post is cheaper, but less reliable.

 

Configuring an rpi here in Thailand and mailing it to the onsite manager of your closet in the US can be done, but is tricky, since you have only one chance to get it right.  If you make any configuration error, you may not be able to connect to it to fix it.  If you get this far, pm me and I will detail the steps to make it work the first time in the closet.

 

Having a private vpn allows you fully to simulate a US presence in the comfort of your own home in Thailand.  There is a learning curve here for your first time rpi setup, but it's doable.

[Langsuan Man]

If you are going to go all the trouble to obtain and use a VPN (overkill IMHO) then shop around and find one that will allow you to pick a particular US city that is close to your " US address" .  This option, is not much more expensive, and has other uses like allowing you to access geographical limited streaming or news casts

 

Like this one (use drop down for United States to see city list) :

 

 https://www.expressvpn.com/vpn-server

[TallGuyJohninBKK]

9 hours ago, Langsuan Man said:

If you are going to go all the trouble to obtain and use a VPN (overkill IMHO) then shop around and find one that will allow you to pick a particular US city that is close to your " US address" .  This option, is not much more expensive, and has other uses like allowing you to access geographical limited streaming or news casts

 

Like this one (use drop down for United States to see city list) :

 

 https://www.expressvpn.com/vpn-server

 

I've used EVPN for the past year or so. Took out a discounted subscription a year ago around Black Friday time. It's a good, all-around VPN service -- good speeds, lots of server locations/cities, and has servers that will work with pretty much any of the major U.S. streaming services. Also has available use of most of the major VPN protocols. Works perfectly fine with the various U.S. financial institutions.

 

 

[Airalee]

Sorry to dredge up this old topic but have now found myself in the same situation regarding my Merrill Edge trading account.   They had blocked my account and when I called to ask why, I was originally told that they were having problems with their system and it should be up shortly but they could connect me with someone else to make a trade for me.

 

After being connected with someone else, I was then questioned about my citizenship, residency status, what my source of income was and any “political contacts” I have. (that certainly was a strange question as I don’t even vote or have anything to do with politics).  When questioned about my residency, I informed them that over the last 4 years I had been living in Thailand 1/2 the time and the US the other half as my brother and I were taking turns taking care of my elderly father who was receiving treatment for stage 4 cancer.  The overlap with my brother in the US would have us both in the US for the required 6 months in order for my account to not be “terminated” as the Merrill rep told me.

 

When I asked what I should do now due to the Covid 19 issue and being that I was basically stuck in Thailand, first due to cancelled flights home and now due to the fact that as Thailand is the safest country and the US is the least safe (as per the official narrative) the rep then told me to hold while he consults with “the people in the back room“.  I informed him that I felt that the best option for me was to stay in Thailand until the “all clear” was given but never really got a straight answer as to what I should do (other than him suggesting I find another brokerage that services expat residents abroad) nor would he say what exactly happenes with my accounts if they were “terminated” due to me not living in the US for 6 months (or more) of the year.

 

So...that’s my story....and with that...has anybody found a brokerage that deals with expats/retirees living abroad?  Everything I seem to find online leads to dead ends or is outdated information (such as using Schwab).

[Oxx]

18 hours ago, Airalee said:

has anybody found a brokerage that deals with expats/retirees living abroad?  Everything I seem to find online leads to dead ends

I find this a bit curious.  I'm not American, but I had no problem opening a US-based account with International Brokers last year as an expat living in Thailand.  Surely they'd be equally willing to open an account for American expats.

[Airalee]

2 hours ago, Oxx said:

I find this a bit curious.  I'm not American, but I had no problem opening a US-based account with International Brokers last year as an expat living in Thailand.  Surely they'd be equally willing to open an account for American expats.

Do you have a link?  Thanks.

[Oxx]

IBKR is at https://www.interactivebrokers.com

 

However, it appears that that is being redirected to https://www.interactivebrokers.com.hk at the moment.  (IBKR has mirrors of its site around the world.  When trading I'm ususally using the .au version of the site.)

 

You could try creating an account at the redirected site.  When you give your country of residence as Thailand you should automatically have your account allocated to the USA, rather than HK.

Alternatively, you could use a VPN to get to the US site.