Investing as a US expat sounds simple until your broker asks for a US address you no longer have. Some firms freeze new purchases once you update to a foreign address, others never accepted Americans abroad at all, and a well-meant purchase of a local ETF can create a tax filing most accountants dread. This guide covers which brokers accept you, the PFIC trap, how IRA contributions interact with the foreign earned income exclusion, and the EU rules that block US ETFs.
Last checked against official sources in October 2026.
Planning a move before investing as a US expat and want a country that fits your income and passport? Take the free WhereToNomad quiz first, then plan your accounts around where you will actually live. This is general information, not personalized investment advice, so talk to a licensed adviser and a cross-border tax professional about your own situation.
Why Investing as a US Expat Is Different
US brokers are regulated around US residents. When you tell a firm your home is now in Lisbon or Bangkok, it has to ask whether it is licensed to serve you there. That is why investing as a US expat comes down to three questions:
- Will your current broker keep your account open and let you buy?
- Which funds can you buy without creating a punitive US tax result?
- Which accounts can you still fund while abroad?
Citizenship-based taxation means investing as a US expat comes with a US return wherever you live, so you still file a US return wherever you live. Our digital nomad taxes for Americans guide covers the filing basics.
Brokers for Investing as a US Expat
The table summarizes which brokers work for investing as a US expat, based on what official pages and neutral reviews say as of October 2026. Policies shift and are often applied account by account, so confirm with the broker before you move.
| Broker | Position for US citizens abroad |
|---|---|
| Interactive Brokers | Serves clients in many countries through regional affiliates; check eligibility for your country |
| Charles Schwab International | Separate program for non-US residents, with eligibility by country |
| Fidelity | Does not open new accounts for people residing outside the US |
| Vanguard | New accounts need a US mailing address; existing foreign-address accounts face limits |
| E*Trade | International account is aimed at non-US citizens and residents; confirm for Americans abroad |
| Wealthfront | Does not support US citizens residing abroad |
| Betterment | Cannot accept customers living outside the US, including US citizens |
| Robinhood | Requires a legal US residential address |
Interactive Brokers
Interactive Brokers is the name that comes up most in investing as a US expat discussions, and in our research for investing as a US expat, because it operates through several regulated entities and accepts clients from many countries. Its official site does say that not all products are available in all countries, and that US mutual funds are only available to customers who are US legal residents with a US address. Eligibility for your country, your trading permissions and tax forms will depend on where you live, so check at application. Visit Interactive Brokers →
Charles Schwab International
Schwab’s international site says the Schwab One International account is for international investors and expats, and that you must state your country of residence first because not all products are available in all countries. A neutral review describes these as US-dollar, US-domiciled accounts with Form 1099 reporting, and notes that a US citizen can apply with a Social Security number. Ask Schwab about minimums and product limits for your country. Visit Schwab International →
Fidelity
A Fidelity page for citizens abroad states, “Fidelity Investments does not open new accounts for individuals residing outside the United States.” Existing customers can generally keep accounts, and Fidelity accepts a foreign legal address for tax reporting, but a foreign address change must be made in writing on a paper form. Reports from customers say new mutual fund purchases are often blocked after the address change while stock and ETF trading usually continues. Visit Fidelity →
Vanguard
A third-party review of Vanguard’s policy says new accounts need a US citizen or lawful permanent resident with a US mailing address. Existing customers can change to a foreign address, though trading restrictions may follow. A 2026 expat article says Vanguard has restricted overseas-resident accounts since 2021 and that outcomes are unpredictable. Vanguard’s own policy pages were not reachable when we checked, so confirm directly. Visit Vanguard →
Wealthfront, Betterment and Robinhood
For investing as a US expat, these three are clear. Wealthfront’s help center says: “We cannot support clients residing outside of the U.S., including U.S. citizens residing abroad.” Betterment says it “cannot accept international customers residing outside the United States,” and requires a permanent US address. Robinhood requires a legal US residential address in the 50 states, Puerto Rico or the US Virgin Islands, with an exception for active-duty military abroad. If you live abroad full time, these are not options for investing as a US expat.
E*Trade
E*Trade offers an international account for non-US citizens and non-US residents that does not require a US address or tax ID. The page we reviewed does not say whether US citizens abroad are eligible, so call and ask before you apply. Visit E*Trade →
Address and KYC Problems in Investing as a US Expat
The trigger for most restrictions in investing as a US expat is the address change. Brokers use your residential address to decide which regulator applies, which tax form they must issue and which products you may buy.
- Be honest about your address. For investing as a US expat, note that Fidelity says it needs a legal residential address for tax reporting and that a PO box can serve only as a mailing address. Using a mail drop as your residence can violate account terms.
- Expect friction on logins and calls. Fidelity warns that logging in from a foreign IP address triggers an agreement prompt, and it suggests installing the app before you leave. Vanguard reviewers report access blocks on foreign IPs.
- Plan phone verification. Wealthfront notes it needs a US phone number for security codes.
A forwarding address helps with mail, and our mail forwarding for digital nomads guide explains how. It does not turn a residence abroad into a US residence for broker purposes.
The PFIC Trap in Investing as a US Expat
The Passive Foreign Investment Company rules are the biggest tax trap in investing as a US expat. The IRS says a foreign corporation is a PFIC if 75% or more of its gross income for the year is passive income, or at least 50% of its assets produce or are held to produce passive income. Foreign mutual funds and ETFs can meet that test.
What goes wrong:
- A US person who holds PFIC stock generally files Form 8621, and a separate form is needed for each PFIC.
- A distribution above 125% of the average of the prior three years is an “excess distribution,” and the entire gain from selling a section 1291 fund is treated as an excess distribution.
- The IRS has a $25,000 exception ($50,000 for joint filers) that lets you skip Part I of the form, but it is only an exception to Part I, not a general exemption from filing.
The simplest way to avoid the PFIC rules is to avoid foreign funds, which is easy if you stick to US-domiciled funds. A local fund sold by your neighborhood bank may be a PFIC even though it looks like an ordinary index fund. Find a tax pro through our best expat tax preparers guide if you already hold one.
Why US-Domiciled ETFs Matter for Investing as a US Expat
A PFIC is, by definition, a foreign corporation. A fund registered in the US is not, so the PFIC regime does not apply to it. For investing as a US expat, this is why most people stay with US-domiciled mutual funds and ETFs held at a US-regulated broker.
Two practical consequences:
- Choose accounts that report on US forms. US-domiciled accounts issue Form 1099, which makes your own return simpler.
- Be careful with foreign brokers. Holding non-US funds at a foreign broker that does not issue US tax reports is a classic PFIC warning sign. Foreign accounts can also trigger FBAR and Form 8938 duties, which our FBAR for digital nomads guide explains.
Investing as a US Expat: IRAs and the FEIE
Investing as a US expat through an IRA works only with compensation: IRA contributions must come from compensation. The IRS publication on IRAs says that amounts you exclude from income, “such as foreign earned income and housing costs,” are not compensation. So if you exclude all your earnings under the foreign earned income exclusion, you generally cannot contribute to a traditional or Roth IRA from that income.
Key points:
- Contribution limit: The 2026 IRA limit is $7,500, or $8,600 if you are 50 or older, and you cannot contribute more than your taxable compensation.
- FEIE vs foreign tax credit: If you use the foreign tax credit instead of excluding income, that income is not excluded and stays compensation. Our FEIE vs foreign tax credit guide compares the two methods. The foreign earned income exclusion post covers eligibility.
- Deduction math: For traditional IRA purposes, the excluded foreign income is added back when computing modified AGI, which can reduce or remove your deduction if you have a workplace plan.
- Reporting: Nondeductible contributions go on Form 8606.
We have not covered Roth conversions here because we could not verify current rules from IRS sources. Ask a cross-border adviser before converting.
EU PRIIPs Rules for Investing as a US Expat
If you live in the EU and use a European broker, you may find US-listed ETFs missing from the menu. The cause is the PRIIPs regulation, which requires a key information document (KID) for packaged products sold to retail investors. A 2021 question in the European Parliament states that ordinary EU retail investors have been unable to buy US ETFs since 2018 because US ETFs do not provide the required KID. That question did not include the Commission’s answer, so check your broker for the current position.
This conflicts with US tax needs. A European broker may offer UCITS funds instead, and for a US person those funds can be PFICs. If you are investing as a US expat in the EU, you may need a US-regulated broker that accepts your country, or a pre-agreed plan with your tax preparer. See our Wise vs Revolut vs Payoneer vs Schwab comparison for the banking side.
Investing as a US Expat vs Non-US Nomads
If you are not American, the picture changes. Brokers such as E*Trade offer international accounts for non-US citizens and residents, and you can open them without a US address or tax ID, using Form W-8BEN. The main extra issue is US estate tax: the IRS says an executor of a nonresident who is not a US citizen must file Form 706-NA if US-situated assets exceed $60,000, and US-situated assets include stock of US-organized corporations. Treaties can change that, so check yours.
Frequently Asked Questions
Can US citizens open brokerage accounts for investing as a US expat?
Sometimes. Interactive Brokers and Schwab International serve many countries, while Fidelity, Wealthfront, Betterment and Robinhood do not accept new customers who live abroad.
What is the PFIC trap in investing as a US expat?
A non-US fund can count as a passive foreign investment company, which triggers Form 8621 and a punitive tax method on gains and distributions. Sticking to US-domiciled funds avoids the issue.
Can I contribute to an IRA if I use the FEIE?
Not with income you exclude. The IRS says excluded foreign earned income is not compensation for IRA purposes, so you generally need other taxable compensation.
Why can’t I buy US ETFs from Europe?
EU PRIIPs rules require a key information document that US ETFs generally do not provide, so many European brokers do not offer them to retail clients. Check your broker’s current list.
Is investing as a US expat different for non-US nomads?
Yes. The PFIC rules apply to US taxpayers, but non-US nomads may face US estate tax on US-situated assets above $60,000 and need a W-8BEN form.
Also read: FBAR for Digital Nomads | FEIE vs Foreign Tax Credit | Wise vs Revolut vs Payoneer vs Schwab | Digital Nomad Taxes for Americans
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