Diversifying across jurisdictions

Bank Accounts, Company Formations, Tax Planning, Residency Solutions, and more
CALL US ON +971 50 4467827 - TO SETUP YOUR NON-CRS COMPANY STRUCTURE IN DUBAI.

Frank Funk

New member
Am i understanding this correctly? By using IBKR I am not really diversifying by buying Asian, African etc. stocks as I am still under the jurisdiction of the USA - if **** hits the fan the US can seize my African, Asian... assets.
So how do you most easily counter this? One could invest in a fund located on said continent and buy the index products they provide - e.g. Asia Frontier Capital or African Lions Fund.
If you want individual stocks you need a brokerage account in each country, right?
 

GeneralGogol

New member
1. US seizing ETFs of foreigners means the destruction of the economical system, in case this happens you will have bigger things to worry about.
2. If you're still worried, buy the ETFs on IBKR and move the stocks to a broker outside the US. You can also buy ETFs that are domiciled in Switzerland, Ireland, etc. You don't have to buy US-domiciled ETFs.
3. The key is to diversify with brokerage accounts on many different jurisdictions. However I don't know if I would trust a broker in Africa more than IBKR (which by the way is based on a jurisdiction depending on your nationality). HK citizens get IBKR HK, SG citizens get IBKR SG, etc.
 

Frank Funk

New member
1. US seizing ETFs of foreigners means the destruction of the economical system, in case this happens you will have bigger things to worry about.
2. If you're still worried, buy the ETFs on IBKR and move the stocks to a broker outside the US. You can also buy ETFs that are domiciled in Switzerland, Ireland, etc. You don't have to buy US-domiciled ETFs.
3. The key is to diversify with brokerage accounts on many different jurisdictions. However I don't know if I would trust a broker in Africa more than IBKR (which by the way is based on a jurisdiction depending on your nationality). HK citizens get IBKR HK, SG citizens get IBKR SG, etc.
Re 1. freezing of selected accounts would not be such a big deal or cause any outcry, see Canadian truckers.
Thanks for you input.
 

algotrader

New member
I wonder how it works if you trade via a local IBKR branch or a via a white label/introducing broker. I guess US shares/ETFs are held in custody in the US but the client and account management is done via the local branch or white label partner, meaning if the juristinction country wants to freeze your account or liquidate your assets they can do it?
What happens if the eurozone breaks apart and Ireland for instance introduces capital controls. Does that mean that they can seize my Irish IBKR account, liquidate all my US shares and convert my holdings to the New Irish Digital Pound?
 

Golden Fleece

Entrepreneur
GeneralGogol is correct. The U.S. would never conduct a mass seizure of equities. It would indeed be the end of the finance system. Of course, if you are a criminal you can lose any property to confiscation.

Yes, if you want individual stocks in third world countries then you will need a brokerage account in each country. In some cases, a regional brokerage will handle a handful of countries, e.g., in Africa. For example, I believe that a specialized local broker can trade securities on the Nairobi Securities Exchange for a number of surrounding countries.
 
Last edited:
Top