How to report securities and brokerage account balances on an FBAR

A securities account with a foreign broker can hold shares, bonds, ETFs, mutual funds and cash. Generally, FinCEN Form 114 records the account's details and maximum value, not each ticker symbol separately. Check the reportable accounts guide for the account-location and ownership tests.⁠^{[1]Source 1}⁠^{[2]Source 2}⁠^{[3]Source 3}

Stocks or bonds that you hold directly outside a financial account are not themselves foreign financial accounts merely because the issuer is foreign. They may require separate Form 8938 analysis.⁠^{[3]Source 3}⁠^{[4]Source 4}

Start with the broker's statements or dated portfolio valuations. Each should show the value of investments plus cash and other assets in that account. Identify the largest reasonably evidenced account total during the reporting calendar year—not simply December 31 and not only the highest cash balance.⁠^{[1]Source 1}⁠^{[2]Source 2}⁠^{[3]Source 3}

You may rely on periodic statements when they fairly reflect the account's maximum. But if you know a big sale, transfer or market spike occurred between statements, review transaction data and other reliable valuations rather than blindly using a monthly snapshot.⁠^{[1]Source 1}⁠^{[3]Source 3}

An account can contain multiple currencies or securities quoted in different currencies. Work out the account total consistently in its reporting currency before performing the FBAR dollar conversion. Do not simply sum values in EUR, GBP and USD as if they were the same unit.⁠^{[1]Source 1}⁠^{[3]Source 3}

After identifying each account's annual maximum in its account currency, use the U.S. Treasury exchange rate for the final day of the reporting calendar year. If no Treasury rate is available, FinCEN permits another verifiable exchange rate with the source identified. Round U.S.-dollar amounts upward to the next whole dollar under the instructions.⁠^{[1]Source 1}

Do not convert each day's valuation at that day's spot rate and choose the largest converted amount as the default FBAR method. For other account currencies and complex multi-currency valuations, retain calculations and the source used. See maximum values and exchange rates.⁠^{[1]Source 1}⁠^{[3]Source 3}

Suppose a foreign brokerage account's quarterly statements show total account values of €22,000, €34,500, €29,700 and €31,800, where each total includes portfolio holdings and cash. If there was no known higher intervening value and the statements fairly reflect the maximum, use €34,500 as the reasonable annual account maximum before USD conversion.⁠^{[1]Source 1}⁠^{[3]Source 3}

Even if most of that value is in U.S. shares, it is still a foreign securities account when maintained outside the United States. Report the broker account rather than creating separate FBAR account records for each shareholding. The reported total is not merely the cash sweep sub-balance unless the sweep is a distinct reportable account.⁠^{[1]Source 1}⁠^{[2]Source 2}⁠^{[3]Source 3}

Jointly owned investment accounts generally are not prorated to your ownership percentage for FBAR maximum-value reporting. Closed brokerage accounts can still count for the part of the year they existed. Closed-account rules and joint-account reporting explain the distinctions.⁠^{[1]Source 1}⁠^{[2]Source 2}⁠^{[3]Source 3}

Margin debt, a negative cash sub-balance, inaccessible securities, valuations unavailable from the custodian, or nested custodial accounts require careful review. Do not net all liabilities against an investment portfolio or substitute zero without checking FinCEN instructions and the specific account records.⁠^{[1]Source 1}⁠^{[3]Source 3}

Retain periodic statements, transaction histories for known peaks, evidence of the account's location and ownership, and the conversion working paper. See the FBAR recordkeeping guide.⁠^{[1]Source 1}⁠^{[2]Source 2}⁠^{[3]Source 3}