OneTRADEx has been designed from the ground up to offer offshore residents and expatriate investors, including non-resident U.S. Citizens the type of quality market access that onshore investors take for granted. Our view is that just because you live offshore or reside outside of your home country, you should not have to suffer poor execution and high costs. We also offer a compelling offshore trading platform for smaller hedge fund managers and family offices that are underserved or not even able to open an account with a prime broker.
OneTRADEx is focused on proving low cost execution brokerage through our online discount trading platform. In recent years it has not been uncommon for offshore and expatriate investors to have difficulty in opening accounts with traditional low cost brokers or even maintaining existing accounts.
In 2010 I personally received a letter from TDAmeritrade thanking me for my years of being a loyal client; however the letter also pointed out that they no longer wanted me as a client as I was residing in the Cayman Islands…
When reviewing your account I am showing that you currently reside in Cayman Islands. Unfortunately this country is now on the list of countries we are no longer able to support. Due to the information we have on file, your account will be coded on December 21, 2010 with a liquidating transaction only restriction. You may still maintain the positions and cash in your account however, you will be unable to deposit additional funds or purchase additional securities. I apologize for any inconvenience this matter may have caused…
While I was thankful for the apology it caused more than a mere inconvenience. Being fired by or unable to open an account with an onshore discount broker raises trading costs significantly and hurts returns. I have heard of investors being denied access due to residing in an offshore financial centre or “tax haven”, having the wrong nationality or being a U.S. expat.
One of OneTRADEx’s first clients initially called us to ask about our fees. He informed us that he had been very excited about an investment where he had made $30,000 on $120,000 in just over a year. This client had been fired by his long time U.S. based broker and had to move his account to an offshore full service broker dealer. In this case full service meant that the client was charged 1% on each trade and 0.5% custody fees. By any measure these are fairly high fees and commissions, however we do know of other brokerages that charge even more to deal with offshore and expat investors. In return for these fees the client did not have access to an online trading platform, received poor execution on his telephone orders and had a broker that observed local holidays that did not correspond with the markets the client was investing in. This client had already paid $1,500 in commission to sell his shares and was looking at another $1,500 to reinvest. In total he was going to pay 10% of his profit on the investment out in commissions.
At OneTRADEx we charge only $0.0125/share for U.S. market equity trades with a low minimum of $9.95 per trade. The moral of this story is that one of our early clients happily transferred his account from the “full service” broker to OneTRADEx and reinvest for much less than 1% without any ongoing custody or account management fees.
If you are looking for a regulated brokerage offering a high quality offshore trading platform please get in contact with us at OneTRADEx. Our investment accounts are expat friendly and we understand the needs of offshore residents and investors.