Introduction
How to invest in the United States while living abroad may sound complicated, but with the right guidance, it is entirely possible and safe. In this conversational and straightforward article, you’ll learn the benefits of investing in the U.S. market and the practical steps to get started today.
Our goal is to turn this content into a reliable source to attract qualified leads—people interested in opening accounts with international brokers, diversifying their investments, or protecting their wealth.
You’ll discover that it’s possible to:
- Access a mature market with a wide range of opportunities
- Invest in stocks, ETFs, REITs, and fixed income
- Do it all legally, with the correct fiscal and regulatory structure
Why Invest in the U.S. While Living Abroad?
- Global Diversification and Stability
The U.S. market offers unmatched liquidity, institutional strength, and asset diversity—covering technology, healthcare, energy, real estate, and more. - Earning Potential
Many global ETFs (such as Vanguard Total World Stock ETF — VT) have historically delivered returns around 8% per year. - Currency Protection
Investing in USD is a smart way to hedge your money against local currency instability. - Access to Top Companies
Think Apple, Microsoft, and Nvidia—major players in global indexes that you can directly invest in.
Is It Legal to Invest in the U.S. While Living Abroad?
Absolutely. Foreigners can invest in the U.S. as long as they meet legal requirements:
- Submit Form W-8BEN to declare U.S. tax on dividends.
- Expect withholding tax on dividends (usually 15% to 30%, depending on tax treaties).
- Capital gains tax: Generally not paid in the U.S. by Brazilians but declared in Brazil.
- Be aware of estate tax on wealth above certain thresholds for non-residents.
Step-by-Step Guide to Start Investing in the U.S.
1. Choose an International Brokerage
Look for brokers that accept non-U.S. residents without a Social Security Number. Top options include:
- Interactive Brokers: Access to 90+ markets, low fees, advanced platform.
- Firstrade: Zero commissions, no minimum deposit for non-residents.
- Charles Schwab: International account (Schwab One International), solid support, but may require higher initial deposit.
- eToro: User-friendly social trading platform.
- Moomoo: Modern app with commission-free trading and analytical tools.
2. Required Documents
- Valid passport
- Proof of residence (utility bill, internet bill)
- Completed W-8BEN form
- Sometimes: income statement or tax declaration
3. Fund Your Account
- Wire transfer via banks or services like Wise, Remessa Online
- Some brokers accept international credit/debit cards
4. Configure and Start Investing
- Choose assets (stocks, ETFs, REITs, bonds)
- Place buy orders (market, limit, etc.)
- Set up reinvestments and monitor your portfolio regularly
Main Types of Investments Available
Stocks
Buy shares of U.S. companies that pay dividends and offer long-term value appreciation.
ETFs
Exchange-traded funds offering instant diversification:
- Global ETFs like VT return ~8% annually
- International ETFs such as iShares MSCI ACWI ex U.S.
REITs (Real Estate Investment Trusts)
Real estate funds that invest in U.S. properties and pay stable dividends.
Bonds
U.S. Treasury or corporate bonds for secure and predictable returns.
ADRs
Foreign companies listed on U.S. exchanges via American Depositary Receipts.
Best Brokers for Non-U.S. Residents
| Broker | Main Benefits | Best For |
|---|---|---|
| Interactive Brokers | Low costs, 90+ markets, advanced platform | Experienced investors |
| Firstrade | $0 commissions, open to non-residents | Beginners |
| Charles Schwab | Global access, strong support, large ETF variety | Traditional investors |
| eToro | Easy to use, copy trading | New and social traders |
| Moomoo | App-based, demo account, detailed analytics | Younger digital users |
Risks and Considerations When Investing from Abroad
- Taxes
Dividend taxes are withheld. Capital gains must be reported in your home country. - Currency Exchange
Fluctuations can affect your returns. Choose low-spread services. - Regulations
Some countries limit asset access. Ensure your broker operates legally in your location. - Market Risks
Diversification helps, but doesn’t eliminate losses.
Tips to Optimize Your International Investments
- Diversify across U.S., global ETFs, and bonds
- Reinvest dividends to benefit from compounding
- Use ETFs (like VT or ACWX) over individual stocks
- Watch for promotions (sign-up bonuses, free trades)
- Automate contributions and portfolio tracking
Common Mistakes to Avoid
- Investing without clear goals
- Ignoring exchange rates
- Failing to file W-8BEN, resulting in higher taxes
- Not knowing local investment laws
- Taking excessive risks without education
Is It Worth Investing in the U.S. from Abroad?
Yes! Investors worldwide—including institutional giants—rely on the U.S. for its economic strength and innovation. U.S. equities consistently deliver long-term value and are a strong foundation for a global portfolio.
Start Now: Your Safe First Step
- Pick the right brokerage for your profile
- Gather your documents
- Open your account and fund it
- Choose assets (ETFs, blue-chip stocks)
- Track performance monthly and adjust as needed
in God we trust
