Brokerageaccount
Brokerage account
An account with a broker for buying stocks, bonds, and funds. Opened with the same checks (KYC/AML) as a bank account; not all brokers accept non-residents.
- What it is
- An account with a broker for buying shares, bonds, funds and other securities
- Where it applies
- Investing on exchanges, holding securities
- Check
- The same KYC/AML as at a bank
- For non-residents
- Not every broker and jurisdiction is suitable
- Can you prepare
- Yes: choose a broker for your residence and gather the documents
In plain words
A brokerage account is an account with a broker through which you buy and hold securities: shares, bonds, ETFs and funds. Unlike a bank account, it is intended for investing on exchanges, not for everyday payments.
It is opened with the same checks as a bank account: KYC (identification) and AML (the origin of money). The broker asks for a passport, proof of address, the source of funds and tax residence — and screens against sanctions. Not every broker suits citizens of “awkward” countries or non-residents: some restrict the clients they accept by jurisdiction.
That is why the broker is chosen to suit your residence and profile. A second passport or a residence permit sometimes widens the choice of brokers and markets, but does not remove the check. Taxes matter too: investment income is taxed in your country of tax residence, and the account data go out under CRS.
Why a brokerage account is useful
What matters with a brokerage account
- Shares and bonds
- ETFs and funds
- Exchange trades
- KYC (identification)
- AML (source of money)
- Sanctions
- Not every broker
- Depends on the jurisdiction
- Residence matters
- Income taxed in the country of residence
- CRS exchange
- Reporting
How to open a brokerage account
- 01Choosing a broker for your residence
- 02Gathering documents (KYC)
- 03Evidencing the source of funds
- 04The broker’s check
- 05Account opened
What you need to know
- A brokerage account is for securities, not payments
- It is opened with the same KYC/AML as a bank account
- Not every broker is suitable for non-residents
- Income is taxed in the country of tax residence
- The account data go out under CRS
Common mistakes
- Going to a broker that does not work with your jurisdiction
- Arriving without evidence of the source of funds
- Forgetting taxes on investment income
- Not taking CRS data exchange into account
- Stating the wrong tax residence
What this means for a BRIDGES client
We choose a broker for your residence and goals, help gather the KYC pack and evidence the source of funds, and explain the tax consequences and data exchange in advance, so that the account is opened and there are no tax surprises.
Frequently asked questions
01 /How does a brokerage account differ from a bank account?
A bank account is for payments and holding money; a brokerage account is for buying and holding securities. The check on opening is the same for both (KYC/AML).
02 /Can a broker refuse a non-resident?
Yes. Some brokers restrict clients by jurisdiction. That is why the broker is chosen to suit your residence and profile.
03 /Do you need to evidence the source of funds?
Yes, just as at a bank: under AML the broker asks you to show the origin of the money you pay into the account.
04 /Do you pay tax on the income?
Yes, investment income is taxed in your country of tax residence. The account data go out under CRS, so it is important to declare everything.
05 /Will a second passport help?
It sometimes widens the choice of brokers and markets, but does not remove the check. Tax residence, not citizenship, plays the key role.
06 /What documents are needed?
A passport, proof of address, and details of your tax residence and source of funds. The exact pack depends on the broker.
See also
Read next
This material has undergone editorial review by BRIDGES.
Need a brokerage account?
We will choose a broker for your residence, help with the documents and explain taxes and CRS exchange.