Today the day started happily with an email I received from Interactive Brokers telling me that my account had been approved and also the initial deposit had been cleared. I had hoped and wanted this a long time ago, more than two years ago to tell the truth, but everything has its time, it is no use putting the car in front of the oxen. This initial deposit for Brazilians is U $ 10 thousand, it is an amount and so much, and it takes the time to be joined.
Why did I choose IB to be my brokerage abroad?
Well, I searched VERY, VERY much, I read and sent the e-mail to several brokerages. The first was OCBC Securities in Singapore, after half a dozen questions calmly excused me. The second one I liked the most was Just to trade in the USA, they open the account for Brazilians and the staff was enjoying the service (but they only have US businesses).
Also, Charles Schwab in the US who is both a bank and a brokerage firm at the same time, offers cards, good ETFs, bank accounts and cheap brokerages, a good call for sure, I do not remember if it only sells assets in the US, but I think so. Then I studied the Drive Wealth that seems to be very good and a great option for Brazilians, with website and app in Portuguese and also the possibility of buying fractions of stock and formerly had the option to buy for bitcoins.
What caught my attention in wanting to buy for her was the possibility of being everything for bitcoins, I went to study the subject but I did not like it so much, there was a spread to buy bitcoin, I had a spread of the real for the dollar, I was not interested in losing 1.5-2.5% on each shipment of money, this borders on the absurdly speaking financially, you pay a dividend in reverse to send the money. Drive wealth is still a relatively new brokerage and certainly still has a lot to grow.
Now let’s talk about Interactive Brokers (I’m not getting paid for it).
The IB has many years of market, almost three decades if I am not mistaken.
The IB has a platform that buys stock in many exchanges in the world, perhaps the broker to give more access to it, you can buy shares directly in Germany, Hong Kong, Singapore, IRELAND AND LUXEMBOURG, Australia, China, France, England, Japan, just to mention, in addition to stocks you can also buy REITS, debt securities from these countries, corporate BONDs, ETFs in various markets, CORE indexes, and so on, when you open the IB broker, you feel the George Soros.
IB is a publicly traded company, its shares are listed on the NYSE, so you will always be able to track the financial health of the brokerage house by watching its balance sheets.
I do not know for sure, but from what I read, in the US, there is something like our CBLC that holds custody and deed their actions on their behalf, so there who does that job and has that responsibility is their own broker, For this she has to have some certifications, the IB has (are two), this is a sign that it is a serious broker and that the probability of fraud gets a little diminished. It is good that something good is taking care of the custody of your actions.
The cost of maintaining the IB account is U $ 10 a month, with the brokerage fee being practically 1 dollar, and the brokerage fees are deducted from the monthly fee, so if I make 3 orders, I will pay 3 brokerage dollars and 7 more for the brokerage. Brokerage fee, not bad, cheaper brokerage, even than that of Rico that I use here in Brazil.
The process to open the account is totally ON LINE, you do not have to print anything, nor send ANYTHING to the post office, you just need to upload your personal documents (passport and proof of address here in Brazil) and fill out the forms and answer everything on -line. It is not so fast, but a couple of hours of PC you solve.
I confess that it gives a certain “fear” to send the money out and buy shares there, but this has to be overcome, it is necessary to break new worlds, I do not think it is worth spending a lifetime investing only in Brazil, in reais, And becoming a victim of the monetary and political excesses that have plagued us since the discovery.
We have many good companies out there, many even, like Google, Loreal, Berkshire, Apple, Johnson and Johnson and countless others.
Now you noticed that I put blue and bold Ireland and Luxembourg? I’m gonna explain.
IShares has hundreds of products based there. These products only pay 15% IR to US-based assets and still reinvest dividends automatically and do not pay for distribution, so the yield is zero.
I think it’s a good strategy for those who are investing in the long-term living in Brazil, and that’s where I’ll start until I feel good to do other things, but for now that’s it. The willingness to do a stocking pick is immense indeed, and I can even do some picking from time to time, but that’s not my goal initially and I’m okay with it.
The iShares UK website to study the products they offer is this:
The Interactive Brokers website is this:
After I make the first purchases I will post everything here, and the wallet too.