Investment accounts for non UK and non US residents?

Nottoobadyet

Hello all,

I am in the lucky position of being able to live and work in a beautiful and dynamic equatorial city, where it is about 25 degrees every day of the year, I can get everywhere I need to go on a motorcycle and live in a house with a garden and view of lake Victoria. Not much to complain about really :rotfl:

However, Im at a point in my life where I would like to start investing seriously and am having trouble finding an online broker that I can use. I am a US citizen but have not lived there since I was a teenager, and though I used to live in the UK for many happy years I am no longer resident there for tax purposes or otherwise. I don't make enough to face double taxation in the US.

I have nearly two years worth of expenses saved up should I stay in Kampala (nearly a years worth should I need to move back to the US for some reason) in instant access savings with Natwest (my UK bank, which is aware of my status), and some investment in a small business here which should start turning a (small) profit soon. I contribute to my pension fund so that the contribution equals about 12% of my salary, including my employer's contribution. I'm 24 and have reasonable job security.

Though banks here advertise very high interest rates, you still lose out on anything held in shillings due to inflation. I'd like to put some money into equities, corporate bonds and other medium term investments. I'm in the lucky position of being able to save / invest £850 or so per month, and expect that my income will increase significantly in about a years time.

My biggest barrier here is that I cant find any way to do these investments without a) using a Ugandan bank which to be honest I can do without the aggravation b) being resident in Europe, east asia or the US. I understand that lots of sites forbid traders from developing country residents due to fraud risk, but does anyone know of one that would work with me?

Thanks everyone!

RetiredInThailand

Try NatWest Stockbrokers. Dont hesitate to ask your branch of NatWest for assistance with opening an account.

Nottoobadyet

Brilliant, Retired! Looking at their T and Cs now.

Nottoobadyet

Just had a look and their prices seem incredibly high - £15 per online trade and minimum £45 by phone? Is that pretty typical? It seems like it would add up very quickly!!

Nottoobadyet

Another question, sorry - does anyone know the best 1 year fixed term sterling savings accounts for a non UK resident? All of martin's best buys require UK residence, though I think I can get the natwest one it only has a 3% yield rather than a 3.6% yield.

RetiredInThailand

£15 is high but not incredibly so. It's only £12 if you trade often. You also get nominee or personal Crest membership for free (you will have to have this). Telephone trading is pointless.

Your best bet for a 1-year bond is probably Investec.

Nottoobadyet

You're a legend, mate!

Nottoobadyet

Gah, Natwest's terms and conditions dont say so but when you go to apply they do demand that you're a UK resident. Investsec has a £25k minimum.

Foiled...

HelpWhereIcan

I grew up in Zambia so am very jealous.

AIB International tend to offer reasonable rates for offshore Sterling Accounts. Also worth looking at as they have $ and Euro accounts too which could be useful in your situation.

As a child I had little need for a share dealing account but, from what I recall, my parents used Barclays and Standard Chartered a lot.

Barclays was their UK (Guernsey) bank and Standard Chartered their African but I know they transferred money between the two by sending the money from SC in Zambia to SC in the Channel Islands and then a transfer to Barclays. Could work out to be quite expensive at the time from what I gather - but this was the 70s/80s!

As for a brokerage, cannot really help you there but think, as a US citizen, you may be better to look to US firms.

RetiredInThailand

Nottoobadyet wrote: »

Gah, Natwest's terms and conditions dont say so but when you go to apply they do demand that you're a UK resident.

http://faq.natweststockbrokers.com/help/faqquestions/general/can-i-open-an-account-if-i-live-in-a-foreign-country/

Nottoobadyet

Thanks so much, helpwhereican! AIB seems just the ticket. I have a Barclays account here, I'll see if I can do anything with hard currency as at the moment the shilling is relatively strong (I get paid in GBP) and any money I made in shillings would be unlikely to cover the change in rates once it goes back down again, as I expect it will.

Thanks again retired - sorry, it was the fixed term bond that I was annoyed about, you're right that it seems the stockbrokers option will work. Cheers for all your help!

PS HelpWhereICan - I hope you make it back to Africa one of these days! Welcome-back Tusker on me