Best broker for international investors
Non-US Citizens can open US brokerage accounts online. They don’t need to travel to the US, have a US visa or a social security card. This will enable them to also open a bank account. This article was updated in July 2021.
Each broker has different rules and procedures. This is a review of TD Ameritrade, Schwab, IB, Fidelity Investments, and JP Morgan Chase.
How much do banks/brokers charge in fees?
Here is a summary of the fees charged by each broker.
Which is the best broker for international investors?
I travel extensively, and many colleagues and clients ask me for help to open accounts in the US. I work in corporate finance; thus, I look at banking from a “customer’s perspective”. I don’t work for any bank or broker, and I don’t receive any incentives. Here are the Pros & Cons of each broker:
Pros: People love their Thinkorswim app. Many reach out to me to find out how to open an account just because of that. I like the fact that I have one person to talk to. Whereas with Fidelity, even if you deposit over $ 1 million, you will need to call a 1–800 number, with TD Ameritrade you have someone looking after your account.
Cons: It’s difficult for residents of the European Union, Canada, and Australia to open accounts, but “there are lots of buts and ifs on it”. They charge more and pay less on interest rates than IB.
Pros: Cheap. Provides full refunds for any ATM fees anywhere in the world. They don’t seem to have restricted nationalities. For example, they will open accounts to EU residents that TD Ameritrade will not.
Cons: they require $25,000 to open an account (for non-resident aliens) but won’t charge fees if the balance falls below. For US residents, there is no minimum to open an account.
It’s easier to do business with Schwab than with Chase.
Pros: great stock and bond finder on their website. Easy to open accounts for international students who are here in the US (see below).
Cons: used to open accounts to Non-US citizens residing abroad and has kept old accounts opened, but new clients are referred to Fidelity International. They were the best in customer service years ago, now they are not.
Interactive Brokers:
Pros: IB opens accounts to residents anywhere. Their list includes 220 countries. IB also pays higher and charges lower interest rates.
Cons: Charges a $10 fee per month if one doesn’t keep a balance over $100K or pays $10 in commissions.
Pros: JP Morgan Chase Sapphire full refunds for ATM transactions anywhere in the world.
Cons: they will not open an account to non-resident aliens. They do, however, open accounts to international investors who reside in the US.
International Students
We tested helping international students, who are here in the US, open brokerage and bank accounts ( I do all this for free, to foster financial education).
The easiest one was with Fidelity Investments. We were unable to do it online, but they emailed an application that we could fill in on a PC, sign electronically, and fax back. The application doesn’t list the fax number, but the fax number is 877–236–8113. Faxing it we saved a stamp, an envelope, we’re able to trace it, and they processed it faster.
It took Fidelity three days to open the account. After that, they send a debit card and then a checkbook (all free). With that information, we also opened a bank account at Marcus by Goldman Sachs. This was faster. Because we already had a bank account at Fidelity, the account was opened on the spot, and the deposit was received in 12 hours. Tip: when you link your bank accounts that you opened at a broker (TD Ameritrade, Fidelity), you need to enter the information manually to link the account. The first time it won’t work automatically because the routing number is with a third-party bank, not with the broker itself. Then it’s all automated.
See also my post Can Non-US Citizens outside the US open a Brokerage account?; and International toll-free numbers for banks and brokers