Adding a Trading Account to your Offshore Trust or Foundation

You can have your Offshore Trust or Foundation open a Trading Account and use it the same way you would use one yourself with your local broker. This enables you to recommend trading activities to your Trust/Foundation - who will then typically perform them as you request. This is a simply way to invest funds from your Trust/Foundation in stocks and bonds. Maybe also currencies, precious metals, commodities - whatever your Trustee/Council has organized.

You should inquire with your Trustee/Council how this is all set up.

  • With most Trustees/Councils, you can request a Trading Account opened for your Offshore Entity anytime, also at the time of establishing it.
  • You transfer money to and from this account by means of a Letter of Wish (LOW).
  • For your trading to be efficient, you must have access to on-line trading through your Trust's broker - technically, you send a LOW to the Trust/Foundation about a trading recommendation. In reality, the Trust/Foundation will take action (or decline) almost instantly, so you will not really feel having the Trust/Foundation between you and the broker...
  • The broker charges the Trust/Foundation a nominal trading fee for each transaction carried out, just as you are used to from you current broker... (expect such fees to be around $10-20 per transaction).
  • All transactions are carried out by and for the Trust/Foundation, so there is no liability and no obligations on your part in regards to taxes, and no need for you to report the transactions to anybody, your own government included.

Setting up a Trading Account for your Trust/Foundation is fairly simple. You should not have to pay more than $500 for access to an on-line trading program.

Other than this, you only need to pay the individual transaction fees to the broker.