Hi

i have a E-trade Brokerage account since 4 years. Currently living in Spain but registered as Venezuelan, also have Spainsh nacionality.


I have been investing in the US market but only in Mutual funds or ETF like Spiders. I will also like to invest in Stocks but they do not allow me because I am foreign., have beend told that foreign can not buy stocks in the US market. That is completly wierd.

Is this true? if yes which other online broker is reccomend?


I can't also do money transfer online, I have to send a fax signed by a Spanish notary, sometinhg crasy because they can't check if it is true.


But they regonize me as a premium client. funny


Juan

 

Hey Juan,

While I've never heard about Etrade specifically banning foreign investors from purchasing an ETF or mutual fund ... I'm willing to bet, the reason you're having problems is due to the Patriot Act (passed by US Congress shortly after 9/11). I happen to know for a fact that you can purchase ETFs, mutual or bond funds (regardless if you come from Spain or Venezuela), however being the US Gov't wants to know exactly who's putting money in to (and even more importantly: taking money out of) our financial system. Bear in mind, I'm also assuming this is your first time trying to purchase a US security. So, for these reasons ... it's usually a huge pain in the ass to get the initial account set up. However, after the account setup process is complete, I'd be surprised if you had any problems.
Hope this helps,
Dan

 

Thanks Dan for the information

I can buy mutal funds and ETF but stocks like IBM, Microsoft... it is harder to know the ownership of a ETF than a Stock so I do not see why is there a difference

I could not buy stocks before and after 9/11. will investigate more about this