Brokers in Panama: 2026 comparison with verified data

Panama taxes on a territorial basis under Article 694 of the Fiscal Code: only income generated inside Panama is subject to income tax (ISR). Capital gains and dividends from foreign sources earned by a resident through an international broker fall outside ISR. The rule is administered by the Dirección General de Ingresos (DGI).

Example: a resident sells Apple shares at Interactive Brokers with a $10,000 gain and pays $0 ISR in Panama. The same person renting out a shop in Panama City for $10,000 pays ISR at the progressive rate (15% to 25%).

Important exception: shares of companies incorporated in Panama are taxed. The capital gain pays 10%, with a 5% withholding on the gross sale price by the buyer (Form 108). A seller who prefers to settle the real 10% instead of accepting the 5% as final payment files Form 107 with the DGI. None of this applies to Apple, Amazon or international ETFs.

The exemption follows tax residence, not passport: citizens, permanent residents and expats who are tax resident in Panama are in the same position. Ask a local tax adviser about your case.

The Panama exemption does not remove US withholding at source. Under the Internal Revenue Code (IRC §1441) US companies withhold 30% of dividends paid to non-resident aliens. Panama has no double taxation treaty with the US, so no reduced rate applies to a directly held share. The W-8BEN form IBKR requires certifies that you are not a US taxpayer; it does not reduce that 30%, but it prevents withholding on capital gains.

Irish-domiciled UCITS ETFs apply the US-Ireland treaty rate (15%) before distributing. For a dividend-oriented investor in Panama, an Irish ETF listed in London or Amsterdam saves 15 points versus the direct share. Interactive Brokers and XTB give access to UCITS ETFs; a CFD pays no real dividend, only a price adjustment.

The Superintendencia del Mercado de Valores (SMV, formerly Comisión Nacional de Valores, renamed by Law 67 of 1 September 2011) rules that only licensed Casas de Valores may offer forex inside Panamanian territory. Agreement 4-2013 adds the technical requirements for platforms operating in Panama.

The brokers in this comparison operate under foreign regulators (SEC and FINRA in the US, FCA in the UK, ASIC in Australia, CySEC in Cyprus). They are not supervised by the SMV and do not appear in its register. A resident may legally open an account with them: Law 67/2011 governs platforms operating inside Panama, not Panamanians accessing brokers abroad.

To check: open the SMV public register of intermediaries, section Casas de Valores, and search the name. If it is not listed, it operates as a foreign entity. The list holds 61 firms with a physical presence (BG Valores, Credicorp Capital, Multibank Securities, BAC Valores, Global Valores, SweetWater Securities, among others), the alternative for anyone who prefers local supervision. Multibank Securities runs on Saxo Bank technology (SaxoTraderGO) with joint SBP and SMV supervision.

The most common mistake of a new investor is confusing a CFD (contract for difference) with a share. With the share you are the owner, you receive dividends and there is no expiry. With the CFD you buy a leveraged synthetic contract: useful for short-term trading, not for building wealth.

A Panama resident is not bound by ESMA: brokers may onboard you under an entity outside the EU or UK (Belize, Seychelles, Bahamas) with leverage up to 1:500 or 1:888. More leverage means less regulatory protection. Always check which entity your account is opened under.

Protection depends on the entity your account sits under, not on the brand. The same broker may register you under the FCA (with FSCS) or under an offshore entity with no fund at all.

Interactive Brokers trades real shares on margin and offers no NBP: if a leveraged position loses more than the capital during an opening gap, the client covers the difference. CFD brokers regulated by the FCA or CySEC must offer NBP to retail clients. To maximise protection, open the account under the broker's FCA entity where one exists.

Every broker runs standard KYC. From Panama you are usually asked for:

USD transfers into Panamanian banks (Banistmo, Banco General, BAC) usually take 2 to 3 extra business days through the correspondent chain.

To compare a pure-spread broker with a fixed-commission ECN broker, add both: cost = spread in pips times pip value, plus commission. For 1 lot EUR/USD (100,000 notional) a pip is worth $10.

From 0.5 lots per trade the ECN model wins. In micro lots (0.01 to 0.1) XM Standard stays competitive because there is no fixed commission. During high-impact releases (NFP, FOMC, US CPI) spreads widen everywhere: Pepperstone Razor 2 to 4 pips, BlackBull 1.5 to 3, XM Standard 4 to 8, Capital.com 3 to 6, XTB 2 to 5. ECN models reflect real liquidity; a market maker can widen unilaterally.

Indicative yearly cost: beginner with 2 lots a month at XM, about $384; active trader with 50 lots a month on Pepperstone Razor, about $4,740 (less with the Active Trader programme from 100 lots a month); long-term investor at XTB below €100,000 a month, $0; expat with 20 purchases a year on IBKR Pro, about $20. With $200,000 invested, the territorial tax advantage versus a Spanish resident is around $4,600 a year, more than the trading cost of almost any profile.