How to Invest in US Stocks: A Guide for non-US Residents

Living outside the United States but want to invest in the world's biggest stock market? It might sound complicated, but it's absolutely doable. The short answer is yes, you can legally buy U.S. stocks by opening an account with a brokerage that works with international clients. This guide will walk you through exactly how to do it, breaking down each step of the journey for non-US residents.

Your Gateway to the US Stock Market#

For international investors, getting access to major U.S. exchanges like the NYSE and NASDAQ means you can own a piece of iconic global companies, for example, Apple (AAPL) or Tesla (TSLA). The appeal is obvious. The U.S. market offers incredible depth, liquidity, and a long history of solid growth. But turning that interest into actual investments means navigating a few key requirements first.

This process is about more than just picking winners; it is about understanding the logistics and rules set up for foreign investors. You'll need to choose the right brokerage, get your identification documents in order, and get a handle on your tax obligations, specifically, a form called the W-8BEN. My goal here is to give you the knowledge to start investing with real confidence.

Before we dive into the step-by-step process, here's a quick roadmap of what's involved. Think of it as your checklist for getting started.

Quick Steps for Non-US Residents to Invest in US Stocks#

Each of these steps has its own set of details, which we will break down in the sections to follow.

Understanding the Market's Potential#

A great first step is to appreciate just how powerful the U.S. market has been over time. For example, the S&P 500 index, a benchmark for the top 500 U.S. companies, has shown impressive long-term growth, averaging an annual return of 8.55% since 1928.

Even in more modern times, from 1984 to 2024, investors saw an average annual return of 9.83%. This history suggests that despite market ups and downs, the opportunities for growth have been consistently strong. You can explore more about historical stock market returns to get a better feel for these trends.

Choosing the Right Brokerage as non-US Resident#

Picking the right brokerage account is probably the single most important decision you will make on your journey to invest in U.S. stocks. This one choice dictates everything from the fees you will pay to the assets you can access and, critically, the paperwork you will need to fill out.

As a non-U.S. resident, your options are a bit more specific than they are for American citizens. But do not worry, several excellent, globally recognized firms are more than happy to welcome international clients. Your main job is finding a broker that not only accepts applicants from your country but also fits your financial goals.

The big payoff? Direct access to major stock exchanges like the New York Stock Exchange (NYSE) and the NASDAQ. This is where giants like Tesla (TSLA) and Apple (AAPL) are listed.

The real difference between these brokers often boils down to one thing: their documentation requirements. Some have a smooth, streamlined process for non-residents, while others have stricter compliance hurdles you will need to jump through.

Brokers With Simpler Requirements (No ITIN Needed)#

For most international investors, platforms like Interactive Brokers (IBKR) and Charles Schwab are fantastic starting points. They have a long history of serving a global clientele and have really dialed in their application process to make it as painless as possible. A key advantage of these brokers is that they generally do not require you to have an ITIN to open an account.

• Interactive Brokers (IBKR) is a powerhouse known for its incredible international reach, accepting clients from over 200 countries. It offers professional-grade trading tools and competitive pricing, making it a favorite for serious investors. The best part? You can generally open an account without an ITIN.
• Charles Schwab also offers a dedicated international account. While they might ask for a higher initial deposit than some others, their platform is incredibly user-friendly and backed by excellent customer support. Like IBKR, an ITIN is typically not a prerequisite to get started.

These brokers make life easier by primarily asking for proof of identity (like your passport) and proof of address.

Brokers That Require an ITIN#

Other top-tier brokerages, while excellent in their own right, often have an extra hoop for non-U.S. residents to jump through: an Individual Taxpayer Identification Number (ITIN). This is a tax processing number issued by the IRS.

An ITIN is not the same as a Social Security Number. It is used exclusively for federal tax reporting, and certain financial institutions require it to stay compliant with IRS rules for non-resident accounts.

Platforms that are known to require an ITIN for non-US residents include:

• Fidelity
• Acorns
• Kraken Pro (stocks)

While these are all outstanding platforms, you should be prepared to get an ITIN either before or during your application. Do not worry, we will cover exactly what an ITIN is and how to get one in the next section. Ultimately, the right broker for you depends entirely on what documents you have on hand or are willing to get.

Comparing Top US Brokers for Non-Residents#

To help you visualize the landscape, here's a quick comparison of some popular choices. This table breaks down which brokers are friendly to international investors and what their general stance on ITINs is.

This is not an exhaustive list, but it gives you a solid idea of where to start your research. Always double-check the specific requirements for your country of residence directly on the broker's website, as policies can and do change.

Getting a Handle on U.S. Tax Rules for Foreign Investors#

Okay, let's talk about taxes. It is the part of investing that sounds complicated, but for non-U.S. investors, it boils down to a couple of key things. Once you get these right, you will be in great shape.

Think of it like this: to access the U.S. stock market, you need two essential keys. One is your official ID for the tax system, and the other is a form that proves you are not a U.S. resident. Get these two sorted, and you’ll stay on the right side of the IRS and potentially save a lot of money.

These two keys are the Individual Taxpayer Identification Number (ITIN) and the Form W-8BEN.

The Role of the ITIN#

So what’s an ITIN? It is basically a tax processing number issued by the IRS for anyone who needs to file U.S. taxes but is not eligible for a Social Security Number. It does not give you any rights to work in the U.S. Its one and only job is to identify you to the tax authorities.

Now, you might be wondering if you really need one. The honest answer is: it depends on your broker. While not every brokerage demands one, many of the big U.S.-based players like Fidelity, Acorns, and Kraken Pro USA make it a non-negotiable requirement for international clients.

Having an ITIN seriously expands your options, opening the door to more platforms with better features and lower fees. It also signals to financial institutions that you’re set up to handle your U.S. tax obligations correctly.

Key Takeaway: An ITIN is your tax ID in the United States. While not always mandatory, getting one is a smart move that unlocks access to top-tier brokerages and prepares you for any future tax filings.

Unlocking Tax Benefits with Form W-8BEN#

This form is your golden ticket. The Form W-8BEN (officially a mouthful: "Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting") is the single most important document you’ll fill out as a foreign investor.

By signing it, you are officially certifying to your broker, and by extension, the IRS, that you are not a U.S. person for tax purposes. Why does this matter so much?

Without this form, brokers are legally required to withhold a flat 30% tax from any dividends your U.S. stocks pay out. That’s a huge chunk of your earnings gone before you even see it.

But here’s the good part: many countries have tax treaties with the U.S. that slash this withholding rate, often down to 15% or even lower. The Form W-8BEN is how you claim that benefit. Just by filling out this simple form, you could literally double the dividend income that lands in your pocket.

If you're new to all this, the specifics can feel a bit overwhelming. You can learn more about the complete picture of tax returns for non-resident aliens to get comfortable with your obligations. Just remember to keep your W-8BEN updated, it needs to be renewed every three years to keep those tax benefits active.

Opening and Funding Your Brokerage Account#

Alright, you have picked your broker. Now comes the real part: the application. Every platform has its own little quirks, but the core requirements are pretty much the same everywhere. Remember, you are opening a legal financial account in the U.S., so they will need clear, valid documents to confirm who you are and where you live.

Thankfully, for most modern brokers, this is all done online. You’ll fill out a form with your personal details, and they’ll probably ask a few questions about your investment goals.

Essential Documents for Your Application#

To avoid any back-and-forth, it’s best to have your documents ready before you start. There are two key things you’ll almost certainly be asked for:

• Proof of Identity: Your passport is the gold standard here. Make sure it’s a high-resolution, color copy of a valid government-issued passport. It cannot be expired, and all four corners must be visible in the scan or photo you upload.
• Proof of Address: This is to confirm where you actually live. A recent utility bill (like electricity or water) or a bank statement from the last three to six months usually does the trick. It just needs to clearly show your name and current residential address.

Once your application gets the green light, which can take anywhere from a few hours to a couple of days, it’s time to get some money in there. This is the moment your plan to invest in U.S. stocks starts to feel real.

A quick heads-up: The name on your bank account must match the name on your new brokerage account. Brokers are extremely strict about this and will not accept money from third-party accounts due to anti-money laundering rules.

Transferring Funds Internationally#

Getting your money into the U.S. account means you will be moving funds across borders and dealing with currency conversion. The most common ways to do this are through an international wire transfer from your bank back home or by using a fintech service like Wise (which used to be TransferWise).

When you are sending the money, keep a close eye on two things: the transfer fees and the currency exchange rates. A standard bank wire is reliable, but it can be expensive. Services like Wise often give you much better exchange rates and charge lower fees, meaning more of your money ends up in your investment account where it belongs.

For a deeper look into the logistics of moving money, our guide on how to open a US bank account for non-residents covers a lot of similar principles.

Okay, your brokerage account is funded. The real work starts now. Let’s shift from the setup phase to actually building a strategy.

Successful U.S. stock investing is not about perfectly timing every market swing, it is about playing the long game. The sooner you accept that markets move in natural, predictable cycles, the better off you will be.

You will hear people talk about bull markets, where prices are generally climbing, and bear markets, where everything seems to be falling. It is easy to feel like a genius during a bull run, but your real discipline gets tested when the tide goes out.

Instead of panicking during a downturn, seasoned investors see it as a totally normal part of the journey. In fact, many see it as a buying opportunity.

Embrace the Ups and Downs#

History shows this rhythm loud and clear. Over the last 65 years, the stock market has moved through six major bull markets and six bear markets. It’s a cycle. That’s why most financial advisors will tell you to think in terms of a 10 to 20-year horizon, not chasing quick, flashy gains.

A strategy that looks brilliant in a booming market can completely fall apart when things turn south. A long-term view is your best defense. You can see these S&P 500 historical trends for yourself to get a feel for the pattern.

Key Takeaway: Volatility is not a sign that you have failed; it is the price of admission for getting those solid, long-term returns from the stock market. A disciplined mindset is what keeps you in the game.

Once you adopt this perspective, you are in a much better position to build real, resilient wealth over time, whether you are buying individual stocks or spreading your risk with diversified ETFs.

Got a Few More Questions?#

As you get closer to investing in the U.S. market, a few final questions usually pop up. Let's tackle the most common ones so you can move forward with total confidence.

Can I Invest in US Stocks Without an ITIN?#

Yes, you absolutely can. It really just comes down to which broker you choose.

While some of the big names like Fidelity or Acorns insist on an Individual Taxpayer Identification Number (ITIN), plenty of others are built for international investors. Platforms like Interactive Brokers (IBKR) and Charles Schwab International are well-known for welcoming clients without an ITIN.

For them, a valid passport and proof of your address are usually all that’s needed to get your account open. So, your choice of broker is what really decides whether getting an ITIN is a must-have or just an option.

What Taxes Will I Actually Pay on My Investments?#

This is a huge point of confusion, but it is simpler than you think. As a non-resident, your U.S. tax situation is very different from an American citizen's. You only need to worry about two things: dividend tax and capital gains tax.

• Dividend Tax: When a U.S. company pays you a dividend, the IRS automatically withholds 30%. The good news? If your country has a tax treaty with the U.S., you can file a Form W-8BEN with your broker to slash that rate, often down to 15% or even lower.
• Capital Gains Tax: Here is the best part. For the most part, non-residents pay zero U.S. tax on profits from selling stocks. The only catch is you cannot be physically present in the U.S. for 183 days or more in that tax year.

The key takeaway is this: the U.S. government is mainly interested in taxing the income you earn (dividends), not the profits you make when you sell your shares. Still, it is always smart to run this by a tax pro who knows your specific situation.

How Do I Get My Money Back Home?#

Withdrawing your funds is pretty much the reverse of putting them in.

You’ll just initiate a wire transfer from your brokerage account straight to your local bank account. Just keep an eye on the currency conversion rates and any wire fees your broker or bank might charge, as those will affect the final amount that lands in your account.