Anyone Trade Stocks, Suggestions For An Offshore Discount Broker?

[billten]

I invest in the US stock market, to avoid taxes i keep my ever dwindling supply of cash in a bank in Singapore. They have a zero personal income tax rate and are scrupulously honest, trouble is, they aint cheap. To trade an equity it costs about 0.25% of each end of each trade, that becomes a real drag on total earnings after a while. So i am asking if anyone has used any of the 'discount' offshore online traders? They are located in Belize, Bahamas and Panama and often only ask 0.04% of a trade or a flat fee such as $10.

BTW, i don't wish to use any of the excellent US discount brokers as they are required to withhold 28% of all income for non-US resident accounts to the IRS, but any other suggestions would be welcome...

Edited June 17, 2012 by billten

[Old55]

Is that legal?

[billten]

Is that legal?

As a resident of the Philippines and a citizen of Canada i can legally earn money offshore and bring it to the Philippines without paying Philippines taxes. I am liable to the local taxes in the country i earned the money, but as Singapore don't have any tax, no problem. Yes its legal and offshore accounts at tax haven countries have been around for decades. Its just that lately, with the internet and all, they have become accessable to the not so super rich.

Edited June 17, 2012 by billten

[OnMyWay]

Is that legal?

As a resident of the Philippines and a citizen of Canada i can legally earn money offshore and bring it to the Philippines without paying Philippines taxes. I am liable to the local taxes in the country i earned the money, but as Singapore don't have any tax, no problem. Yes its legal and offshore accounts at tax haven countries have been around for decades. Its just that lately, with the internet and all, they have become accessable to the not so super rich.

Canada does not want a piece of the earnings?

[billten]

Canada does not want a piece of the earnings?

Not being a resident of Canada means that i do not pay taxes in Canada. Canada has no laws like the US where once you become a non-resident they want to keep their hands in your pocket. If you want more details about the tax laws involved we can perhaps take this conversation off to PM and let the thread return to the OP?

Does anyone here use and can recommend an offshore discount broker?

Edited June 17, 2012 by billten

[Dave Hounddriver]

I can answer that part. Canada wants a piece of the earnings if you are a resident. I try hard to keep my residency there because money earned in Canada is subject to high tax if you are a non resident. Fortunately they don't want any part of your world income if you are NOT a Canadian resident.

It means non resident Canadians lose 25% of their pension right off the top for being non resident and that sucks, for me. It means a wise Canadian does not receive his income from Canadian sources if he can help it. It used to be possible to remove your RRSPs to a tax haven when you became a non resident but I believe that I would have to pay 25% on those funds to get them out of country now. For those of us with low incomes it pays to remain a resident in a zero tax bracket.

(oops. Sorry for continuing off topic but its a fascinating subject for those trying to maximize tax advantages. Note I am not educated in tax laws except where they pertain to me and thought some may be interested. I hope you get an answer to the opening question but I expect you are already way ahead of the majority of us.)

Edited June 17, 2012 by Dave Hounddriver

[billten]

Its cool Dave, you are correct, my RRSP's took a beating when i brought them offshore, but i have made it back and some by the tax advantages and flexibility that offshore trading offers.

Only problem is commissions are too damn expensive to play the short game and with stocks churning daily it would be very nice to take some positions that are going to be rolled quickly. Discount brokers are the only way to do that and so far i have not found one that has a serious financial player backing it and has an offshore option. There are more and more around every day, but they all seem to be backed by slightly shady middle level players and i am a conservative person when it comes to this kind of thing.

Edited June 17, 2012 by billten

[Jack Peterson]

Is that legal?

As a resident of the Philippines and i can legally earn money offshore and bring it to the Philippines without paying Philippines taxes.

Canada does not want a piece of the earnings?

Not 100% sure this is correct, According to the BIR site any money a resident earns in or out of the PI should be reported,

According to the Site, only pensions and certain other Gifts and inheritance are exempt. exempt, whilst I like most, am not a tax expert. I think you would be wise to check it all out, from what you are saying I get the impression from the BIR that you should be compiling a tax return. Just My Opinion but I would hate to hear that you were charged with Tax evasion, regardless of how big or small your returns are.

Not wishing to cast doom and gloom at all, better to be aware then get your Collar Felt at a later stage. Any Countries Tax system is a Mine field, so Forwarned is far Forearmed IMHO. Have a good read my friend, best to be safe than sorry I feel. Good luck to you on this. :)

http://www.bir.gov.ph/

Jack P. :tiphat:

[billten]

Who Are Required To File Income Tax Returns

Individuals

• Resident citizens receiving income from sources within or outside the Philippines (nope, not a citizen)
  
  • employees deriving purely compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year
    
  • employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return
    
  • self-employed individuals receiving income from the conduct of trade or business and/or practice of profession
    
  • individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession
    
  • individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
    
  • individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing
    
  • marginal income earners
    

• Non-resident citizens receiving income from sources within the Philippines (Nope)
  

• Aliens, whether resident or not, receiving income from sources within the Philippines (Nope, income is from earnings OUTSIDE of the Philippines)
  
• Corporation shall include partnerships, no matter how created or organized. (No)
  
• Domestic corporations receiving income from sources within and outside the Philippines (No)
  

• Foreign corporations receiving income from sources within the Philippines (No)
  
• Estates and trusts engaged in trade or business (No)
  

The above was taken from the BIR web-site.

I have checked this VERY CAREFULLY, an alien who is resident of the Phils is not required to report income to BIR from his savings or investments that are held outside of the Philippines. You are required to pay taxes in the location the savings or investments are held but that has nothing to do with the Philippine Govt.

[Jack Peterson]

Who Are Required To File Income Tax Returns

Individuals

The above was taken from the BIR web-site.

I have checked this VERY CAREFULLY, an alien who is resident of the Phils is not required to report income to BIR from his savings or investments that are held outside of the Philippines. You are required to pay taxes in the location the savings or investments are held but that has nothing to do with the Philippine Govt.

Granted and obviously correct, if held outside the PI, what happens if you bring it into the PI? which, my friend is what you original stated. this was my query on the the statement. you made. I Just can't see, there will be No liability