Which broker to choose: Russia, CIS, the US and one for the whole world
A good broker is not the one with the prettiest app but the one through which your money and securities will still be yours in twenty years. Here is how to choose and where to start checking.
- What matters in a broker is reliability and how money gets in and out, not a pretty app.
- For most countries the universal option is Interactive Brokers.
- Before a large amount, deposit a small one and try withdrawing it.
Five questions for any broker
- Who supervises it? A broker must hold a regulator's licence, and you can check it on the regulator's own website. Find out whether clients are protected if the broker fails, and up to what amount.
- Will it open an account for you? That depends on both your country of residence and your citizenship. One without the other often does not work.
- Which markets does it reach? US stocks and funds, European funds, bonds — or just the local exchange.
- What does it cost? Trade commission, account fee, currency exchange, withdrawals. For a long-term investor currency exchange and account fees matter most.
- How do you get money in and out? The cheapest broker is useless if a transfer to it eats several percent or does not go through at all.
One for the whole world: Interactive Brokers
Interactive Brokers is a US broker whose shares trade on an exchange. It opens accounts for residents of most countries, which is why it is most often called universal.
- Pros: supervision by US regulators; account protection under the US SIPC scheme — up to $500,000, of which up to $250,000 in cash; access to exchanges in dozens of countries from one account; low commissions on trades and currency exchange; no account fee.
- Cons: a complex app; funding is by bank transfer, which can be costly or slow; support is in English.
- Restrictions: citizens and residents of Russia and Belarus face restrictions, and these have changed several times. Ask the broker about current terms before applying.
If you live in the US
US residents can use brokers with zero commission on US stocks and funds. Three names people most often start with:
- Fidelity — one of the largest brokers, strong retirement accounts and its own funds.
- Charles Schwab — a large broker and bank in one, convenient for everything at once.
- Interactive Brokers — if you need foreign exchanges and cheap currency conversion.
The first two usually do not open accounts for people who do not live in the US.
If you live in Russia
Russian brokers mean access to the Russian market: Moscow Exchange stocks and bonds, government bonds, exchange-traded funds. The largest by number of clients are T-Investments, Sber and VTB; for experienced investors wanting a wider toolset — BCS and Finam.
- The main lesson of 2022: foreign securities bought through Russian brokers were frozen for years. Foreign assets through a Russian broker carry not only market risk but the risk of the custody chain itself.
- Check the sanctions status of the broker and its bank: it determines which currency operations are available to you.
- An individual investment account gives tax benefits, but the money has to stay there for years.
- There is no deposit-style insurance on brokerage accounts. Securities are held separately from the broker; cash on the account is not.
If you live in a CIS country
Kazakhstan, Armenia, Georgia, Uzbekistan, Kyrgyzstan: fewer options, but they exist. People usually choose among three.
- Interactive Brokers directly. It opens accounts for residents of most of these countries. This is the cheapest route to world markets if you are ready to fund the account by bank transfer in dollars or euros.
- Freedom Broker (Freedom Finance). The largest regional broker; its parent company trades on a US exchange. Easier to fund in local currency and has Russian-language support, but commissions are noticeably higher — read the tariff carefully.
- The broker of a large local bank. Convenient if you want the local market and bonds in your own currency. The choice of foreign securities is usually modest.
In short
| Option | For whom | Main plus | Main minus |
|---|---|---|---|
| Interactive Brokers | Most countries | World markets, low fees | Complex, funded by transfer |
| Fidelity, Schwab | US residents | Zero commissions | Not for non-residents |
| Russian brokers | Residents of Russia | Simple, local market | Risk of frozen foreign assets |
| Freedom Broker | CIS countries | Local currency, Russian language | Higher fees |
How not to get it wrong
- Check the licence on the regulator's website, not the broker's.
- Start with a small amount and try withdrawing part of it right away. A withdrawal is the real test of a broker.
- Do not keep everything in one place once the amount becomes large for you.
- Stay away from “brokers” from ads that call you first, promise returns and offer leveraged currency trading. A real broker does not promise returns.
- Learn about taxes: dividends of US companies are taxed at source, and the rate depends on your country.
Account open — what to buy? The Analyst breaks down any company and shows whether it fits your goal.
Analyst →This article is educational and is not investment advice or an advertisement for brokers. Terms, restrictions and fees change — check them on the brokers' and regulators' websites.