Blog Details

Blog Details

Automated Stock Trading for Americans Living Abroad

Card image cap

Americans Living Abroad

In this article, we will show how Americans living abroad can make their lives more easy and build up an investment portfolio which trades on Auto Pilot using the free stock trading app from The Money Pouch.

Download the free stock trading app on Google Play

Download the free stock trading app on on iTunes

These apps are only available if you are not a U.S. tax resident. You need to be living abroad on a permanent basis. You can see more about the countries and residents we accept here.

Why are Americans Choosing to Live Overseas?

  1. Tax - you can set up your finances in a way which reduces taxation (see below)
  2. Medical insurance - health insurance costs in the USA are at least double their European counterparts. It can be very, very cheap if you set up a public health insurance card in many countries
  3. Employment opportunities
  4. Seeking a new start
  5. Seeing new friends/partners
  6. Weather
  7. Cheaper cost of living
  8. Broaden your horizons
  9. Challenge yourself
  10. Learn new languages/cultures

Where are Americans Choosing to Live Overseas?

Here is a list of places in Forbes magazine suggested for Americans going to work overseas.

  1. Lisbon, Portugal
  2. Cali, Colombia
  3. Santo Domingo, Dominican Republic
  4. San Pedro, Ambergris Caye, Belize
  5. Saint-Chinian, France
  6. Abruzzo, Italy
  7. Ljubljana, Slovenia
  8. Playa del Carmen, Mexico
  9. Bali, Indonesia 
  10. Da Nang, Vietnam

Some noticeable absentees on that list: Thailand, Malaysia, Ecuador, Chile, Cuba, Panama, Greece & Malta

Americans who wish to retire abroad can live in any of these places for $1,000 to $2,000 per month.

More information in this Forbes article and Internations poll.

American Expats by Country

Here is a list of the American Diaspora. Here are the top 10 countries where American expats live abroad. You can see the full list here along with a description of the estimates.

Mexico <1,000,000
Canada <1,000,000
Germany 324,000
Philippines 220,000–600,000
Israel 200,000
United Kingdom <200,000
Puerto Rico 189,000
Costa Rica 130,000
South Korea 120,000
France 100,000
China 71,493

Automated Stock Trading Account for American Citizens Abroad

American citizens living abroad can take advantage of their new overseas residence to set up an automated stock trading account. Download the free apps on The Money Pouch's website to set up a free stock trading account today.

The free personal wealth management app will automatically buy stock, bond & gold ETFs every month on your behalf. The investment portfolio even has the ability to sit in cash if stock markets start falling. 

Watch the video below to learn how to set up a free account.

Click here to learn more about automated trading and algorithmic trading.


Tax for American Citizens Living Abroad

There are a number of ways to mitigate tax if your are an American citizen abroad. But, you must be tax resident abroad. You cannot live in the US and just visit another country on holiday. You must be tax resident abroad.

Unfortunately, many American citizens living abroad get many headached from all the paperwork that the IRS make you fill in. Don't fall into that trap, there are a number of cheap services online that can do the job for you (see below).

It can be very challenging to set up a bank account abroad or an international stock trading account, but The Money Pouch can take care of that for you.

American Citizens Abroad - Tax Structures

Here are some simple structures you can use to reduce taxation or eliminate various taxes in the USA.

  • Set up a US company to hold your investment portfolio
  • Set up an offshore trust or foundation to hold your investment portfolio

These structures should really only be considered for investment accounts over $100,000 as there are set up costs and annual costs to set up these structures. The cost is usually about $3,000 to set up a trust.

You could consider setting up an offshore trust to protect your assets from U.S. taxes on death. The most efficient way presently, is to set up a Panama trust or foundation.

Why set up a Panama Trust?

A Panama trust or foundation is one of the most effective ways to protect your assets from court seizure and avoid any taxes on death. You can name your heirs and decides who gets what upon death.

You can set up a Panama trust in one day. It will then take a few weeks to issue all the documents and get everything legal.

What are the benefits of a Panama Trust?

• Protect Foreign Spouses/Partners: Foreigners can set up trusts with foreign beneficiaries and assets in other countries. For example, you can set up a Panama trust to hold an Interactive Brokers account to trade US ETFs with The Money Pouch’s automated trading system and upon death, the trust distributes assets tax-free to a spouse or partner.

• Confidential: The law penalizes anyone associated with a Panama trust who discloses confidential information without a court order and is punishable by 6 months imprisonment.

• Privacy: Since trusts are not registered with the government in Panama, the identity of the settlor, beneficiaries and assets are never included in public records.

• No Taxation: All assets located outside of Panama producing income or distributed to beneficiaries are completely tax-free. However, U.S. taxpayers and anyone paying taxes on global income must disclose the income to their governments.

• Estate Planning: Trusts can have perpetual life for generations of heirs to enjoy.

• Asset Protection: All assets are protected from the settlor’s creditors and beneficiaries’ creditors.

• Fast Formation: A trust can be formed in one day.

New Foreign Earned Income Exclusion (FEIE) Law

Now for some good news for US citizens living abroad who still own a home in the USA.

The IRS recently announced (August 24th) a new law that allows US citizens and resident aliens, notably contractors or employees supporting the US Armed Forces in designated combat zones, to qualify for the Foreign Earned Income Exclusion (FEIE). In February of this year, the Bipartisan Budget Act of 2018, changed the tax home requirement for eligible taxpayers, allowing them to claim the FEIE even if their “adobe, or home, is in the United States.

Help for Americans Living Abroad

Here are some helpful sites for Americans living abroad:

Americans Abroad (@ACAVoice) | Twitter

America Abroad (@America_Abroad) | Twitter

1040 Abroad (@1040abroad) | Twitter

Greenback Expat Tax Services

The US Expat Community

Gringos Abroad

American Citizens Abroad News

New Tax Headache for Americans Abroad



By using this website, you accept our Terms of Use and Privacy Policy. As with all investments your capital is at risk and the value of your investments as well as the income derived from them can rise as well as fall. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. Historical results do not include the transaction and management fees. All securities involve risk and may result in loss. This site is provided for information purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any financial instruments. We do not provide financial advice to investors. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. The Money Pouch assumes no responsibility for the tax consequences or returns for any investor of any transaction.