“International investor” covers two very different situations that require different brokers: a U.S. citizen or resident living abroad who still wants access to U.S. markets, and a non-U.S. resident who wants to invest through a U.S. brokerage. Both groups run into restrictions that domestic investors never encounter, and the broker that works well for one situation can be a poor fit for the other.
Quick Verdict
| Category | Winner |
|---|---|
| Best overall for global market access | Interactive Brokers (IBKR) |
| Best for U.S. expats who want a familiar, simple platform | Charles Schwab International |
| Most restrictive for anyone living abroad | Fidelity |
| Best for keeping a U.S. account while moving frequently | Interactive Brokers |
| Best for accessing non-U.S. exchanges directly | Interactive Brokers (90+ market centers, 150+ countries) |
Interactive Brokers: The Broadest Access
IBKR is built for genuinely global investors. It offers trading access across more international markets than any other major U.S. broker — well over 30 countries for direct exchange access, and operations in 150+ countries overall. Critically for anyone who moves between countries, IBKR is known for allowing customers to retain their account and simply update their tax residency, rather than closing the account outright, which is a common problem at other U.S. brokers when a client’s address changes to a foreign country. IBKR also offers institutional-grade currency conversion at a small, transparent spread, rather than the roughly 1% markup some competitors charge on currency exchange.
The trade-off is complexity: IBKR’s Trader Workstation platform has a real learning curve, and customer service is generally rated as adequate rather than exceptional. For a buy-and-hold investor who just wants to hold index funds, IBKR can feel like more platform than necessary — though its simpler “IBKR Lite” tier is designed specifically to address that.
Charles Schwab International: The Familiar Option
Schwab explicitly serves non-resident U.S. citizens through its Schwab International division, and it’s often the more approachable choice for someone who already knows the Schwab platform and doesn’t need access to foreign exchanges. You can update your address to a foreign country without the account being closed, and it comes with the same commission-free U.S. stock and ETF trading as the domestic Schwab platform.
The meaningful limitation: Schwab International only accepts USD deposits and only trades U.S.-listed securities — there’s no access to foreign exchanges. Currency conversion into USD at Schwab has also been reported at a less favorable rate than IBKR’s. And Schwab International isn’t available to residents of every country, so eligibility should be confirmed for your specific location before relying on it.
Fidelity: The Most Restrictive of the Major Brokers
Fidelity does not open new brokerage accounts for anyone residing outside the United States, and if an existing account holder updates their address to a foreign country, Fidelity blocks new mutual fund purchases going forward (existing holdings and ETF trading generally remain available). For anyone planning an international move, this makes Fidelity the broker most likely to cause friction — it’s worth converting mutual fund holdings to their ETF equivalents and considering a transfer to Schwab or IBKR before relocating, rather than after.
The Tax Trap Every International Investor Should Know: PFIC Rules
This is the single most important warning for any U.S. citizen investing while living abroad: never purchase foreign mutual funds, foreign ETFs, or other non-U.S. pooled investment vehicles in a taxable account. The IRS classifies these as Passive Foreign Investment Companies (PFICs) and taxes them punitively — commonly at rates of 37% or higher, plus additional interest charges, with genuinely burdensome reporting requirements. The safe approach is to stick exclusively to U.S.-domiciled ETFs and index funds through a U.S. brokerage, even while living abroad.
Can You Still Contribute to a Roth IRA While Living Abroad?
Yes, but only if you have earned income above the Foreign Earned Income Exclusion (FEIE) threshold, which sits at $132,900 for 2026. If your foreign-earned income is fully excluded under the FEIE, you may have no taxable compensation left to support a Roth IRA contribution, which is a detail many expats miss until tax season.
Which One Should You Choose?
If you need genuine access to foreign exchanges, plan to move between countries repeatedly, or want the most flexible account that won’t be closed when your address changes, Interactive Brokers is the strongest choice despite its steeper learning curve. If you’re a U.S. citizen living abroad who only needs to keep investing in U.S.-listed stocks and ETFs and wants a simpler, more familiar platform, Schwab International covers that need well, provided your country of residence is on its supported list. Fidelity is the one major broker to actively avoid setting up before an international move, given how directly it restricts non-resident accounts.
Disclosure: This article is for educational purposes only and does not constitute financial, tax, or legal advice. We are not licensed financial advisors. Brokerage policies and eligibility rules vary by country and change without notice — verify current terms directly with the brokerage and consult a cross-border tax professional before opening an account. Some links on this page may be affiliate links.
Last reviewed: July 2026.