Hi. I got some money (about $4k) and I want to invest them. Currently I keep them in a local bank and get about a 5 percent year interest rate. The inflation in my country is about 10 percent and growing, so now I’m loosing. There’re some banks which can give me about 12 percent for long-term deposits but it doesn’t work for me either. So now I’m looking for other ways to make my cash work for me.I wonder: can I do it with a help of some US (EU or UK) broker? I’d like to give my bucks to some mutual fund or try a forex trading. I got a visa card and can create a PayPal account if required.Another question: would I have to pay my income taxes and where (in Russia or in the US)?Thanks in advance.

Living in Russia does not disqualify you from opening a broker account abroad. There are a few countries like Burma, Nigeria, Iran and Syria where you would not be allowed to open an account abroad because the governments have not signed up to international treaties on issues like money laundering. However Russia is fine, all that will happen is that you will be asked for ID to prove who you are and where you live.The only issue I can think of is whether Russia has any foreign exchange controls in place. You should be able to check this with a bank if you don't know but you should find out before you deposit any money. Technically paying money in a US broker account would be taking money outside Russia. It may therefore be a problem under Russian law.You shouldn't need a Visa card or Paypal account. What you invest in is (obviously) up to you, but Forex trading sounds like a quick way to lose a lot of money quickly. Particularly if you're new to investing. A mutual fund (or OEIC fund in Europe) sounds like the smart option.The tax you pay will depend on the tax treaty between Russia and the country that hosts your broker account. To give you an example, I am a UK citizen with an account with TD Ameritrade in the US. They withold part of my dividend payments for US tax authorities and I am also liable for some taxes in the UK. You are likely to be in a similar position.