Best Mutual Fund selection for non-US resident (based in UAE)

For residents of the United Arab Emirates.
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chrismues
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Joined: Mon Nov 05, 2018 11:56 pm

Best Mutual Fund selection for non-US resident (based in UAE)

Post by chrismues »

Hi, I want to start setting up a portfolio of mutual funds (maybe also ETFs), and have already identified a few based on Morningstar research. I was considering setting up an account with Interactive Brokers, Internaxx or Charles Schwab. Given I am a German living in Dubai, do any of you know:

- will I have access to all mutual funds, even US based on these platforms, or only non-US, or only off-shore?
- which platform would you recommend and why? Which has the widest fund universe available?

Thanks
TedSwippet
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Re: Best Mutual Fund selection for non-US resident (based in UAE)

Post by TedSwippet »

Welcome.
chrismues wrote: Tue Nov 06, 2018 4:54 amHi, I want to start setting up a portfolio of mutual funds (maybe also ETFs), ...
You can find recommendations for non-US residents in this part of the wiki: https://www.bogleheads.org/wiki/Outline ... _domiciles

The tl;dr for you is likely to be that you will need to use ETFs rather than funds, and that you should avoid US domiciled ETFs (and mutual funds) entirely, due to highly unfavourable US tax laws relating to US non-resident aliens -- the UAE has no tax treaty with the US. You can easily and cheaply use EU domiciled ETFs, typically UCITS ones from Vanguard EU's or iShares EU's Ireland domiciled ranges, traded on assorted European exchanges.

All of this is covered in detail in the pages contained in the wiki section linked above.
ICH
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Re: Best Mutual Fund selection for non-US resident (based in UAE)

Post by ICH »

There is a local UAE bogleheads chapter. Did you find it?

In brief you will need to buy ETFs domiciled in Ireland.
Interactive brokers is the cheapest. Some people go for Internaxx, Swissquote, Degiro, Zackstrade and others.

You don't need a platform with great selection. You can get access to the popular ETFs through any of them.

Make an investing plan before you invest: https://www.bogleheads.org/wiki/Investm ... _statement

I hope you have not fallen for the fabulous investment plans sold in the UAE by the insurance companies!
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LadyGeek
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Re: Best Mutual Fund selection for non-US resident (based in UAE)

Post by LadyGeek »

chrismues, Welcome!

FYI - chrismues has tax questions in this thread: Withholding tax on US Mutual Funds for UAE investor

Information on a UAE Bogleheads chapter is here: Master Thread for UAE Bogleheads
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