Updated
GL-B-05
Glossary · Banks and finance
Brokerage account - a securities account opened with the same checks as a bank 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.
01 / In 30 seconds
The short answer
- 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
02 / In plain words
What Brokerage account means
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.
A case from practice
An investor wants to open an account with an international broker, but it does not accept clients from their country. With a broker chosen for their residence and a KYC pack gathered in advance, the account is opened without difficulty and they gain access to the exchanges they need.
Why a brokerage account is useful
- Investing in shares and bonds
- Buying ETFs and funds
- Access to international exchanges
- Holding securities
- Diversifying capital
- Long-term investment
03 / What it covers
What matters with a brokerage account
What for
- Shares and bonds
- ETFs and funds
- Exchange trades
Check
- KYC (identification)
- AML (source of money)
- Sanctions
Access
- Not every broker
- Depends on the jurisdiction
- Residence matters
Taxes
- Income taxed in the country of residence
- CRS exchange
- Reporting
04 / How it works
How to open a brokerage account
Choosing a broker for your residence
A broker that works with your country and residence.
Gathering documents (KYC)
Passport, address, tax number.
Evidencing the source of funds
Statements and documents on the money for the account.
The broker’s check
The broker checks the data and sanctions lists.
Account opened
The account is open and you can buy securities.
05 / Key facts
What you need to know
01What it is
An account for securities
Shares, bonds, ETFs and funds. For investing on exchanges, not for everyday payments.
02Checks
KYC and AML
Passport, address, source of funds, tax residence, sanctions screening.
03For non-residents
Not every broker
Some brokers restrict clients by country. A second passport or residence permit sometimes widens the choice.
04Tax
By residence
Income is taxed in your country of tax residence, and account data is exchanged under CRS.
Common mistakes
Applying to a broker that does not accept your jurisdiction
Check the broker's country list before applying.
Applying without proof of source of funds
Prepare statements and documents on where the money came from.
Forgetting tax on income
Plan for tax in your country of residence and CRS reporting.
06 / Expert advice
How to prepare in advance
The broker is chosen to suit your residence and profile, the KYC pack (passport, address, source of funds) is gathered in advance and your tax residence determined — that is where the data will go under CRS. A second passport or residence permit sometimes widens the choice but does not remove the check. Then the account is opened without refusals.
What we do for you. 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.
Robert HaasHead of Company Formation
07 / Questions
Frequently asked questions
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).
Yes. Some brokers restrict clients by jurisdiction. That is why the broker is chosen to suit your residence and profile.
Yes, just as at a bank: under AML the broker asks you to show the origin of the money you pay into the account.
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.
It sometimes widens the choice of brokers and markets, but does not remove the check. Tax residence, not citizenship, plays the key role.
A passport, proof of address, and details of your tax residence and source of funds. The exact pack depends on the broker.
INITIAL ASSESSMENT
Tell us what outcome your family needs
We will design a solution for your case, choose the country and the right status, and take the whole process through to the result.
