In this article, we are going to list the 10 best online brokers for non-US citizens. Click here to jump to the 5 Best Online Brokers For Non-US Citizens.
Are you a US visa holder or a non-US resident looking to invest in the US stock market? Finding a broker may seem complicated, but there are actually quite a few brokers out there that are by far the best brokers for non-US residents, allowing people from many countries to register. If you want to find out who the best online brokers for non-US citizens are, read on so you can join the world of online non-US citizens trading soon enough!
Whether you are a foreigner living in the US or a citizen of any other country in the world, the US stock market is the go-to place for all investment opportunities. Two of the most lucrative stock markets in the US are the NYSE and NASDAQ. Both markets provide US traders and investors with the ability to buy and sell stocks for publicly traded companies. Among many of the companies listed on the US stock exchange, there are many that you’ve probably heard of. For example, Alibaba Group Holding Limited (NYSE: BABA), GameStop Corp Holding (NYSE: GME), Coca Cola Company (NYSE: KO), Pinterest Inc. (NYSE: PINS), Twitter Inc. (NYSE: TWTR) etc. many Thanks to the success and high profile trading in the US markets, non-US citizens have wondered if they can trade in those markets too. The answer is yes. There are currently no regulations preventing online merchants from trading in US markets.
In order to participate in online trading, you need to open an account with an online broker. Making the right choice of an online broker is crucial if you want your trade to be profitable. What Are Online Brokers And What Can They Do For You? An online broker makes it easy to buy and sell any securities / assets over the internet. The transactions are mainly processed through the broker’s trading platforms. Online and brokers became increasingly popular in the mid and late 1990s, which was made easier by the development of high performance computers and faster internet connections.
Why Trade Online? Well, trading is one of the most lucrative jobs anyone can do. It’s convenient for many as you can place orders, review quotes, and make changes from anywhere. It also makes it easier for traders to execute faster and helps make better use of volatility. By exploiting market discrepancies, traders and investors are given the opportunity to implement their strategies. Most importantly, trading online is cheaper than trading through a traditional broker, and the market offers some of the most desirable goals people could want, such as financial gain and more time to pursue hobbies.
As a non-US citizen interested in the US stock market, finding the right stockbroker can be very frustrating. For starters, you can pick a broker who makes promises they can’t deliver and you lose. Second, it can be quite difficult to compare brokers and find the one that’s right for you. If you are a non-US citizen, understand that there are many rules and regulations involved in opening a brokerage account. Before opening an account, you should contact the brokerage company. There are companies that allow online applications while others require paper submissions. There are also brokers who require legitimate Visa information and the W-8BEN form, among other things.
Before considering an online broker, consider the following factors:
Let’s start with the products on offer first. It is important to consider the type of products offered by the broker. This should be relative to what is geographically possible. For example, the online company may have access to top stock markets such as the London Stock Exchange, NYSE and NASDAQ, but not the markets of Japan and China. When it comes to products, look for a broker who can trade all US stocks, as well as mutual funds, forex, and futures, among others. Second, you should consider security. This is especially important when it comes to your own funds. One function to be checked is the security of the platform. The company must have an authentic SSL certificate. If you have a valid SSL, your trading platform url is safe. It starts with https and not with http. It is also important to consider which investor protection law you are under. Last comes the pricing. You need to pay attention to the broker’s minimum balance, the fees you have to pay per trade, and the fee due for inactivity. Other additional fees can include withdrawal fees and commissions. By researching pricing related issues, you can select a brokerage firm that is within your budget.
By now you understand that an online broker should offer a reasonable minimum investment, trading platforms with top features, top customer service options, and no additional account fees. Based on these criteria, we have listed below the brokerage firms that make our list of the 10 best online brokers for non-US residents.
Brokerage firms and investment companies have been rated on the services they provide that are important to various types of investors. For example, for active traders, online brokers with low to no commission and high-tech mobile trading platforms are most ideal. For those new to trading online, online brokers who provide educational resources, research and customer service such as chat on demand and phone support have been added to the list. The ranking is based on ratings, reviews and experiences compiled by Nerdwallet, Brokerchooser and Warriortrading. So let’s take a look at the online brokers ready to open a whole new world in trading for you, starting with number 10:
10. Speed of light
Overall rating: 3.25 / 5 Investopedia
Minimum account: $ 10,000 (web), $ 25,000 (software)
Fees: Maximum $ 4.50 / share trade, $ 0.65 / options contract. No charge per leg
Lightspeed is a great choice for very frequent traders as their minimum accounts are high but the trading costs are very low. You will not find planning tools or guides for amateur traders on Lightspeed, but advanced traders can benefit greatly from their available trading tools.
9. Charles Schwab International (NYSE: SCHW)
Minimum account: $ 2500 for non-U.S. Residents
Fees: Free share, ETF trading, $ 0.65 per options contract
The company is widely recognized as one of the best ETF and ETF screener brokers, offering a wide range of tools and services suitable for all levels of investment. It offers multiple platforms including mobile web platforms and native mobile apps, as well as a desktop platform. On November 25, 2019, Charles Schwab announced that it would take over the online brokerage of TD Ameritrade. In August 2020, Schwab confirmed that TD Ameritrade’s thinkorswim platform will continue to operate after the acquisition is complete.
Antonio Guillem / Shutterstock.com
8. TD Ameritrade
Fees: Commissions for trading free stocks, ETFs and pro-leg options in the US as of October 3, 2019. USD 0.65 per options contract
TD Ameritrade continues to be one of the largest online brokers and has moved on because of its advantage with novice investors. TD Ameritrade provides customers and prospects with detailed and comprehensive information about its services, created on a variety of social media sites including Twitter and Facebook. Once TD Ameritrade attracts customers’ attention, it offers its customers a choice of their platforms including the base website, mobile apps and thinkorswim designed for active traders with an emphasis on derivatives. Education is a key component of TD Ameritrade’s offering.
Fees: $ 0 commissions on most stocks, options, and ETF trades
Founded in 1985 in Queens, New York, Firstrade offers commission-free trading on stocks, options and ETFs. No fees are charged for the investment funds offered. With multiple trading platforms and access to free research, it also offers bi-weekly educational seminars for beginners. It also offers an Android and iOS mobile application with a dashboard and research functions such as advanced charts. Firstrade accepts customers from 60 countries and does not require a social security number or tax number.
6. Zack’s trade
Zacks Trade is an ideal company for active traders and investors seeking access to a human broker as well as trading on overseas exchanges. Zacks Trade offers three free trading platforms and access to 20 free research reports. Because of its association with Interactive Brokers, Zacks Trade is available in 218 countries and enables over 90 international exchanges.
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Disclosure: No position. The 10 best online brokers for non-US citizens were originally published on Insider Monkey.
What is the best online broker platform for non-US citizens?
To help you get started, here are some brokers that accept traders and non-US citizens investors: Interactive Brokers. Speed of Light. TradeStation.
Can Non-U.S. Citizens Use Robinhood?
This means that you must be a US citizen or permanent resident with a legal address in the 50 US states or Puerto Rico. The only way for a non-US citizen to obtain an SSN and therefore be able to open a Robinhood Account is to have a valid US visa.
How can a non-US citizen buy a stock?
The easiest way to trade US stocks is to open a brokerage account with a US broker. However, brokerage firms have different procedures for non-nationals based on residence status, and non-nationals are required to provide more documents to comply with their internal regulations.
Which Broker is Best for International Trading?
If you are a US citizen and want to buy stocks overseas, the top three international brokers are Interactive Brokers, Fidelity Investments, and Charles Schwab.
Is Online Brokerage Safe?
Trading online is safe when you use a regulated online stockbroker and never invest more than you are ready to lose. Trading stocks online is inherently risky. Start with a small amount of money, read investing books, and keep it simple by buying and holding long term.
How do I buy stocks internationally?
6 ways to invest in foreign stocks
- American Depository Receipts (ADRs)
- Global Depository Receipts (GDRs)
- Foreign direct investment.
- Global mutual funds.
- Exchange Traded Funds (ETFs)
- Multinational Enterprises (MNCs)
Which Country is Best for Stock Trading?
These are the five most important countries.
- No. 5: India. As of 2019, India will be the only country that can still be invested in in the five largest countries this year.
- No. 4: Indonesia. …
- No. 3: United Kingdom. …
- No. 2: Thailand. …
- No. 1: Croatia.
Can a Non-US Citizen Trade US Stocks?
There is no citizenship requirement to own shares in American companies. … Even if a non-US citizen can legally trade US stocks and bonds, it may still be necessary (in addition to their recommendation) to contact an investment firm and use the services of a professional to take.
Can non-US citizens open a Fidelity account?
This means that you must be a US citizen or permanent resident with a legal address in the 50 US states or Puerto Rico. The only way for a non-US citizen to obtain an SSN and therefore be able to open a Fidelity account is to have a valid US visa.
Can foreigners buy stocks in China?
Can foreigners buy China A shares? Yes. Foreign investors can invest in A-shares through Stock Connect, Qualified Foreign Institutional Investor (QFII) or RMB Qualified Foreign Institutional Investor (RQFII) programs.
Do Foreigners Pay Taxes On US Stocks?
Foreign residents are not subject to U.S. capital gains tax, but capital gains taxes are likely to be paid in your home country. Foreign residents are subject to a 30% dividend tax rate on dividends paid by US companies.
Can a Non-US Citizen Use TD Ameritrade?
Can non-US citizens open bank or brokerage accounts? Yes, you can. … TD Ameritrade opens accounts for residents of over 100 countries. The few exceptions include the European Union, Canada, and Australia, but there are many buts and ifs on it.
Can non-US citizens open a bank account?
Yes, a foreigner, foreigner, expat, or traveler can open a bank account in the United States. However, the process is not as simple as it used to be and requires patience and planning. … some banks require you to have a US address, online banks must have an SSN (or an ITIN for a foreigner) and so on.
How do you open a TD Ameritrade account for non-US residents?
To open an account with TD Ameritrade as a non-resident alien, you will need to provide the following documents: 1. Bank or brokerage statement from the last 6 months which exactly matches the full name and address given on the account application. The account does not have to be in US dollars.
Why does TD Ameritrade need my Social Security number?
The government uses this information in part to keep records of an individual’s financial assets and to prevent money laundering and other illegal financial activities. Because of this, TD Ameritrade will have to ask for your SSN and will not let you proceed with the online application until you provide it.