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How to invest in US stocks as a foreigner
Evidence tier: A1 Evidence type: Auto-discovered official publication Source: Wise Blog Official publication date: 2026-07-15 Captured: 2026-07-17T13:20:11.213Z
If you live outside the US and want to invest in US stocks as a foreigner, you might be wondering whether you're allowed to and how complicated it gets. You can.
Non-residents can buy shares in the US, and while there are a few important quirks you should be aware of, it's not as difficult as it seems.
This guide covers whether foreigners can invest, how to buy US stocks from abroad step by step, which brokers work with international clients, and how the tax side works once you're up and running.
We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.
Can foreigners invest in US stocks?
Yes, foreigners can invest in US stocks.
No US law stops non-residents from buying and holding US stocks, bonds, or ETFs. The markets are open to foreign investors, and people around the world own shares in American companies.
What you will deal with is paperwork. Brokers follow identity and anti-money-laundering checks, and the IRS asks foreign investors to confirm their tax status with a form called the W-8BEN.
However, none of this blocks you from investing. Once you know what to prepare, the barrier to entry is lower than most people assume.
How to buy US stocks from abroad: Step-by-step process
1. Choose a broker that accepts international clients
Not every brokerage works with non-residents, so start by finding one that takes clients from your country. Your options usually fall into two groups:
- US-based firms that offer international accounts, and
- Brokers in your home country that give you access to US exchanges
A US-based broker gives you an account with an American firm, so you trade on US exchanges yourself and hold the shares in your own name, usually in USD.
A home-country broker acts as a middleman that connects your local account to US markets, which often means support in your language and the option to deal in your own currency, but the selection of US stocks can be narrower.
2. Verify your identity
Brokers have to confirm who you are before you can trade.
You'll typically need a passport or government-issued ID, proof of address such as a utility bill or bank statement, and sometimes a tax identification number. ¹
That said, you may need to provide more documents depending on the broker and where you live.
3. Fund your account
After your account is approved, you need to add money to it.
US brokerage accounts hold funds in USD, so if you earn in another currency, you'll need to convert it first. At this stage, costs can add up, since banks often charge a transfer fee and build a markup into the exchange rate, so that's something to watch out for.
4. Place your first trade
With money in your account, you're ready to buy.
Look up the stock or ETF you want, decide how many shares or how much money to put in, and place your order. Many platforms also offer fractional shares, so you can start small as you get comfortable.
Best brokers for foreigners: Choosing the right platform
There are a handful of established brokerages that have built part of their business around serving investors outside the US, including Interactive Brokers, Charles Schwab, and Firstrade.
Here's how they compare:
<table><tbody><tr><td><strong>Broker</strong></td><td><strong>International accessibility</strong></td><td><strong>Account minimum</strong></td><td><strong>Fees</strong></td></tr><tr><td>Interactive Brokers²</td><td>Clients (almost) worldwide, access to 170+ markets, funding in up to 29 currencies</td><td>None</td><td>0 USD on US stocks and ETFs with IBKR Lite; tiered pricing on IBKR Pro</td></tr><tr><td>Charles Schwab³</td><td>Schwab One International account for non-US residents; availability varies by country</td><td>None</td><td>0 USD online listed US equity trades</td></tr><tr><td>Firstrade⁴</td><td>International accounts for non-US residents in supported regions; strongest in Europe and Asia</td><td>None</td><td>0 USD on stocks, ETFs, options, and mutual funds</td></tr></tbody></table>Let's take a closer look at each platform.
Interactive Brokers²
Interactive Brokers (IBKR) is one of the most widely used platforms for international investors, with access to over 170 markets.
You can fund and trade in as many as 29 currencies, which helps if you're not starting with USD. Its IBKR Lite plan offers 0 USD commissions on US stocks and ETFs, and there's no minimum to open an account.
Charles Schwab³
Charles Schwab offers the Schwab One International account, which is a dedicated account for people investing in the US market from abroad.
It comes with 0 USD online listed equity trades, no account minimum, and access to US market specialists who can walk you through opening and funding an account.
Schwab is a long-established name with strong customer support, but its availability depends on where you live.
Firstrade⁴
Firstrade has offered international accounts since the 1980s and can be a good option if you want something simpler and lower-cost. It charges 0 USD commission on stocks, ETFs, options, and mutual funds, with no minimum deposit and no maintenance fee.
You can open an account without a US Social Security Number, but its supported countries list is shorter than some competitors. That said, it's still available in countries like China, Mexico, and Spain.
Navigating the US stock market tax for foreigners: The W-8BEN Form
Taxes are where many foreign investors get nervous.
As a non-resident, you generally won't pay US capital gains tax on the profit you make when you sell a stock. What you will face is a standard 30% withholding tax on dividends paid by US companies, taken automatically before the money reaches your account.⁵
This is where the W-8BEN comes in. Officially called the Certificate of Foreign Status of Beneficial Owner, this form tells your broker and the IRS that you're not a US person for tax purposes.
Your broker will ask you to complete it when you open your account.
If your home country has a tax treaty with the US, completing the W-8BEN lets you claim a reduced withholding rate on your dividends.
However, these tax rules are complex and depend on your country and personal situation, so make sure to confirm the details for your own case, ideally with a tax professional.
The hidden cost of global investing: Currency conversion fees
There's one cost that catches people off guard, and it has nothing to do with taxes or the stock market.
Your US brokerage account holds money in USD, so if you earn and save in another currency, every deposit means a currency conversion.
Banks rarely give you the mid-market exchange rate you see on Google. Instead, they add a markup to the rate, so you receive fewer USD than the market value of your money.
On top of that, sending an international wire through the SWIFT network usually comes with its own transfer fee, plus possible charges from intermediary banks along the way.
A standard markup of 2% or 3% on the exchange rate, plus the wire fees each time you fund your account, can easily eat into the money you meant to invest.
How to save money on international stock trading
You can sidestep a big chunk of the costs by converting your money at the mid-market rate, which is the same rate banks use between themselves, and the one you'll find on Google.
Wise gives you that rate with a clear, upfront fee, so you know what the conversion costs before you send anything.
There are two practical ways to use Wise when funding a brokerage account:
- You can convert your local currency to USD and wire the funds straight to a platform like Interactive Brokers, or
- You can hold USD in your Wise account and use your own USD details to fund your brokerage more efficiently
Either way, more of your money lands in your account and goes toward investing.
Wise can help you get a better deal on currency conversion in over 40 currencies, with the mid-market exchange rate and low fees from 0.41%*.
Open a free personal Wise account online or in the Wise app, and order a linked multi-currency card for spending and withdrawals in 145+ countries.
There’s no fee to spend any currency you hold, and no foreign transaction fee to worry about.
Use your account when you travel or shop online in foreign currencies, send payments to 40+ currencies, and get your own local account details to get paid from 145+ countries.
Say goodbye to overcomplicated currency exchange.
*Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information
Start building your global portfolio
If you want to invest in US stocks as a foreigner, you need to choose a broker that accepts clients from your country, verify your identity, and complete your W-8BEN.
With these pieces in place, the US market becomes accessible.
The last piece to sort out is how to move your money across borders to fund your account without losing a chunk of it to fees.
<table><thead><tr><th>Opening a <a href="https://wise.com/us/account/">Wise account</a> is another option you can benefit from — it’s quick and simple to do it online with just a few clicks.</th></tr></thead><tbody></tbody></table>Get a Wise Account in minutes 💰
Sources
- Investopedia - Investing in US stocks for non-US citizens
- InteractiveBrokers - Home
- Charles Schwab - International
- Firstrade - International Accounts
- Investopedia - Do non-US citizens pay taxes on money earned through a US internet broker?
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
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