can anyone buy us stocks? A global guide

Can anyone buy US stocks? In general, yes — individuals worldwide can buy shares of U.S.-listed companies, but access depends on broker policies, KYC/AML, tax forms (W-8/W-9/ITIN), and country-spec...

2025-12-26 16:00:00

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Can anyone buy U.S. stocks?

Can anyone buy US stocks? Yes — in broad terms, many individuals around the world can buy shares of companies listed on U.S. exchanges. However, access depends on the broker you choose, required identity and tax paperwork, local law and capital controls, and certain U.S. tax or regulatory rules. This article explains who can invest in U.S. stocks, how to open accounts, tax and reporting considerations, practical trading routes, and special cases to watch.

This guide is written for beginners and global investors who want a clear, actionable path to trade U.S. equities — and highlights how Bitget’s platform and Bitget Wallet can play a practical role in execution and custody where available.

Overview: who can invest in U.S. stocks

The fundamental principle is simple: U.S. citizenship is not required to own U.S. stocks. Many non-U.S. individuals, trusts, corporations, and custodial accounts own U.S.-listed equities every day. That said, real-world access is shaped by several constraints:

Broker acceptance: some U.S. brokers accept international clients; others do not, and many impose country-specific restrictions.
Sanctions and embargoes: residents of sanctioned countries may be blocked by law or broker policy.
Local rules and capital controls: some jurisdictions restrict outbound investments or require approvals.
Documentation and tax compliance: brokers require KYC/AML verification and U.S. tax forms (W-8BEN, W-9) that determine withholding and reporting.

Because of these constraints, the practical answer to “can anyone buy us stocks” is: many people can, but you must meet broker and legal requirements.

Eligibility and investor categories

Different investor groups face different steps and rules when buying U.S. stocks.

U.S. citizens and U.S. residents

U.S. citizens and U.S. tax residents generally have the most straightforward route:

Typical requirements: Social Security Number (SSN), proof of identity, and standard brokerage documentation.
Account access: full access to retail brokerage accounts, margin accounts (subject to approval), and retirement accounts (IRAs, 401(k) rollovers) where eligible.
Tax treatment: taxed on worldwide income; must provide Form W-9 to brokers for tax reporting.

Non-U.S. residents / foreign investors

Non-U.S. residents can usually open U.S. brokerage or international broker accounts, but expect extra steps:

Tax paperwork: most non-U.S. persons must complete Form W-8BEN to claim foreign status and, where applicable, treaty benefits to reduce dividend withholding.
Identifiers: some brokers permit opening accounts without an SSN; an ITIN (Individual Taxpayer Identification Number) may be required in specific cases.
Withholding: dividends are generally subject to U.S. withholding (default 30%), reduced by tax treaties if claimed on W-8BEN.
Capital gains: many nonresident aliens are not subject to U.S. tax on capital gains from the sale of U.S. securities, but there are exceptions (e.g., effectively connected income, U.S. real property interests).

International students and visa-holders

International students (F-1, J-1) and other visa holders generally may invest passively:

Passive investing is usually permitted and common, but documentation and tax treatment vary by visa and residency status for tax purposes.
High-frequency trading or trading as a business could raise questions about work authorization for visa-holders — keep activity passive and consult counsel or immigration guidance if unsure.
Tax forms: students may be nonresident aliens for tax purposes and use W-8BEN; scholarship or employment income has separate tax rules.

Entities and custodial accounts

Corporations, trusts, partnerships, and custodial accounts can hold U.S. stocks but require additional paperwork:

Corporate accounts: require corporate formation documents, board resolutions, tax IDs, and possibly a U.S. tax ID.
Trusts: trustees must provide trust documents and beneficiary information; tax treatment depends on residency and trust type.
Custodial accounts for minors: parental/guardian ID and minor’s details, with special transfer-on-death or custodial rules.

Each entity type triggers specific broker reviews and tax reporting obligations.

How to buy U.S. stocks — brokerage and access routes

Several pathways let global investors trade U.S. equities. Pick the route that matches your residency, desired features, and documentation capacity.

U.S.-based brokerages that accept international clients

Some U.S. brokerages maintain international account teams and accept clients from many countries:

Account types: international or nonresident alien accounts, often opened online or via mail.
Restrictions: broker acceptance lists vary by country; residents of sanctioned or high-risk jurisdictions are frequently excluded.
Documentation: expect passport, proof of address, W-8BEN (or W-9 if a U.S. person), and potentially notarized or certified documents.

If you ask “can anyone buy us stocks through a U.S. broker?” the practical answer is many can, but acceptance is broker- and country-dependent.

Local brokers / domestic banks offering U.S. market access

Many local brokers or banks provide execution on U.S. markets via correspondent relationships:

Convenience: accounts denominated in local currency, local customer service, and simpler domestic deposit methods.
Costs: FX conversion fees, international commission structures, and potential markups.
Process: local brokers often handle U.S. tax forms on your behalf or require you to submit W-8BEN for foreign status.

This route suits investors who want local support and settlement in local banking rails.

Mobile trading apps and online brokerages

Modern mobile platforms offer easy access to U.S. equities and features like fractional shares and simple fee structures:

Fractional shares: lower capital requirement to own high-priced tickers.
Commission models: many retail brokerages offer $0 commission on U.S. stock trades, but check for other fees.
Documentation: onboarding can be faster, but international verification rules still apply; some apps restrict countries they serve.

When considering mobile apps, confirm whether they accept residents of your country and how they handle tax forms and FX.

Account opening and required documentation

Brokerage onboarding enforces KYC/AML rules to verify identity and prevent financial crime. Typical requirements vary by investor type.

Identification and proof of address

Common documents:

Passport (recommended for non-U.S. persons).
National ID card (where accepted).
Proof of address: recent utility bill, bank statement, or government letter; usually dated within 3 months.

Some brokers require notarized or certified copies for international applicants.

Tax forms and identifiers (W-8BEN, W-9, ITIN, SSN)

Form W-8BEN: used by non-U.S. persons to certify foreign status and to claim reduced withholding rates under tax treaties. Brokers will often require a W-8BEN on file to apply the correct dividend withholding.
Form W-9: U.S. persons provide this form to certify SSN and tax status; brokers report to the IRS using this information.
SSN vs. ITIN: U.S. citizens and residents use SSN. Nonresidents lacking an SSN may be able to use an ITIN in certain cases; obtaining an ITIN involves an IRS application and supporting documents.

Additional paperwork (beneficial owner forms, source-of-funds, paper vs. online forms)

Beneficial ownership: brokers may ask who ultimately benefits from the account, especially for entities.
Source-of-funds: some brokers request proof of the origin of funds for compliance.
Paper vs. online: certain international applications may require mailed or notarized paper documents; others offer fully digital onboarding.

Plan extra time when opening accounts from overseas, and verify whether electronic identity verification is accepted.

Taxes, withholding, and reporting

Understanding the tax treatment is essential. This section gives neutral, factual guidance — consult a tax professional for personalized advice.

Dividend withholding and tax treaty effects

Default withholding: the U.S. generally withholds 30% on U.S.-source dividends paid to non-U.S. persons.
Tax treaties: many countries have bilateral tax treaties with the U.S. that reduce withholding (commonly 15% or 0% for eligible treaty residents). To claim treaty rates, investors must complete Form W-8BEN and include the appropriate treaty claim.
Broker mechanics: when a valid W-8BEN is on file, brokers usually apply the reduced rate at source; otherwise, 30% applies.

Capital gains taxation

General rule: nonresident aliens are typically not subject to U.S. tax on capital gains from the sale of U.S. securities, provided the gains are not effectively connected with a U.S. trade or business and the investor is not a U.S. resident for tax purposes.
Exceptions: gains from U.S. real property interests, certain dealer activity, or effectively connected income may be taxable.
Home country tax: even when not taxed by the U.S., capital gains are often taxable in the investor’s country of residence.

Reporting forms (Form 1042-S, broker reporting)

Form 1042-S: brokers issue Form 1042-S to non-U.S. persons for U.S.-source income paid and any amounts withheld (for example, dividends subject to withholding). It provides details used for tax filings in the investor’s home country.
Timing: brokers typically issue Form 1042-S annually for the prior tax year.

Special withholding regimes (Section 871(m), 1446(f))

Section 871(m): targets dividend-equivalent payments on certain derivatives and structured products. Non-U.S. investors may face withholding on dividend equivalents, depending on the transaction.
Section 1446(f): withholding on dispositions of interests in publicly traded partnerships (PTPs) can apply to non-U.S. investors; brokers or withholding agents may deduct tax at source.

These regimes add complexity for derivative or partnership investments and deserve special attention.

Types of brokerage accounts and trading mechanics

Understanding account types and trade mechanics helps set expectations about rights, costs, and limitations.

Cash vs. margin accounts

Cash accounts: trades must be fully funded; no borrowing against holdings.
Margin accounts: permit borrowing to increase buying power (subject to interest and margin maintenance requirements). Margin increases risk and requires broker approval; international clients may face stricter margin rules.

Retirement accounts and international investor limits

U.S. retirement accounts (IRAs): generally require a U.S. taxpayer status; nonresidents usually cannot contribute unless they have U.S. earned income and meet other IRS rules.
Employer plans (401(k)): generally limited to employees of U.S. employers.

Nonresidents should not expect standard U.S. retirement accounts unless they meet residency and income criteria.

Fractional shares, direct purchase plans (DRIPs), and order types

Fractional shares: allow purchasing part of a high-priced share; useful for smaller accounts.
DRIPs: dividend reinvestment plans let investors reinvest cash dividends into additional shares; availability depends on broker and issuer.
Order types: market orders execute at the current market price; limit orders execute only at a specified price or better. Use limit orders when concerned about execution price in low-liquidity situations.

Pattern day trader rules and activity limits

Pattern day trader (PDT) rule: U.S. accounts with margin that execute four or more day trades within five business days may be designated PDT and must maintain a minimum equity of $25,000.
Impact on non-U.S. investors: brokers often apply PDT rules regardless of residency; low-balance traders should be cautious about frequent day trading.

Regulatory and country-specific restrictions

Access to U.S. markets can be blocked or limited for legal and policy reasons.

Sanctions, embargoes, and broker country availability

U.S. sanctions: residents of countries subject to comprehensive sanctions may be prohibited from buying U.S. securities.
Broker policies: individual brokers may decline clients from certain jurisdictions to manage compliance risk.

If you wonder “can anyone buy us stocks if my country faces restrictions?” the answer is that sanctions or broker policy can prevent it.

Local law and capital controls

Some countries require pre-approval for outbound investments, limit the amount that can be transferred abroad, or levy reporting obligations on foreign holdings.
Compliance: check local rules before funding an international brokerage account to avoid currency control violations.

Risks and practical considerations

Investing across borders adds practical risks beyond market risk.

Currency exchange and FX costs

FX conversion: buying U.S. stocks often requires converting local currency to USD, which involves spread and fees.
FX risk: exchange-rate movements can increase or reduce local-currency returns.
Tip: review broker FX rates and funding options (local vs. USD deposits) to minimize costs.

Fees, commissions, and settlement timings

Commissions: many U.S. retail stock trades have $0 commission, but brokers may charge other fees (custody, transfer, inactivity).
Settlement (T+2): U.S. stock trades settle two business days after trade date (T+2), affecting cash availability and margin.

Estate tax and cross-border succession issues

U.S. estate tax: nonresident aliens owning U.S.-situs assets, including certain U.S.-issued securities, may face U.S. estate tax exposure above exemption thresholds.
Succession planning: cross-border estate and probate laws can complicate inheritance of U.S. securities; consult an estate attorney.

Market risk and liquidity

Liquidity: large, widely traded U.S. stocks tend to be liquid, but smaller issues or ADRs can be illiquid. As of 2026-01-17, according to a crypto liquidity industry overview (provided), liquidity determines execution ease and potential price impact. The same concept applies to stock markets: low liquidity increases slippage and trading cost.
Diversification: manage single-stock risk and time-horizon risk.

Step-by-step checklist to start investing in U.S. stocks

Follow these steps to get started and reduce onboarding friction:

Decide: confirm you can accept the answer to "can anyone buy us stocks" in your case — check local law and sanctions.
Choose a broker: select a U.S. broker that accepts your country or a reputable local broker that offers U.S. execution. Consider Bitget where available for global trading infrastructure and Bitget Wallet for custody needs.
Confirm country eligibility: review broker country lists and restrictions before applying.
Gather documents: passport, proof of address, tax forms (W-8BEN or W-9), bank statements for funding.
Open account: complete onboarding (online or paper), submit KYC documents, and complete tax forms.
Fund account: wire or transfer funds, noting FX fees and settlement timings.
Place first trade: start with a small position, use limit orders if liquidity is uncertain, and consider fractional shares.
Maintain records: keep W-8BEN or W-9 and tax documents; expect Form 1042-S if you are a non-U.S. person receiving U.S.-source income.
Review taxes: consult a tax advisor to understand withholding, treaty benefits, capital gains treatment, and home-country reporting obligations.

Frequently asked questions (short Q&A)

Q: Can I open an account without an SSN? A: Often yes — non-U.S. investors usually use Form W-8BEN and may use an ITIN for some brokers; availability depends on broker policy.

Q: Are dividends taxed for foreign investors? A: Dividends paid to non-U.S. persons are typically withheld at 30% unless reduced by an applicable tax treaty claimed on Form W-8BEN.

Q: Can I day-trade as a non-U.S. investor? A: Yes, but pattern day-trader rules and broker policies still apply; accounts below $25,000 may face restrictions if designated as PDT.

Q: Do I need a U.S. bank account? A: Not always — many brokers accept international bank transfers in local currency and convert to USD; funding options vary by broker.

Notes, caveats, and when to seek professional help

This article provides general information, not tax or legal advice. Rules and broker policies change — verify current requirements with prospective brokers.

Seek professional help when:

You have complex cross-border tax situations, entity accounts, or large portfolios.
You need estate planning for cross-border holdings.
You face uncertain treaty benefits or potential U.S. tax exposure.

A qualified tax professional or attorney can provide country-specific guidance.

References (selected)

Investopedia — How Non-U.S. Citizens Can Easily Invest in U.S. Stocks (reference used for practical steps and tax guidance)
Charles Schwab — Trading Stocks in an International Brokerage (used for withholding and international account details)
U.S. Securities and Exchange Commission (SEC) — Opening a Brokerage Account (legal/account considerations)
Fidelity — International Investor Guides (account types and trade mechanics)
E*TRADE — International Accounts and Tax Requirements (onboarding and forms)
Ally — Brokerage account guides (order types and fees)
Experian — identity verification and fraud-prevention guidance
Industry overview (provided) — liquidity and market impact (quoted for liquidity context)

As of 2026-01-17, according to an industry overview on crypto liquidity (provided), liquidity is a key determinant of trading costs and execution quality. This concept is relevant when considering "can anyone buy us stocks" because market liquidity, FX liquidity, and broker execution quality all influence trade outcomes.

Final notes and next steps

If you still wonder "can anyone buy us stocks" for your situation, start by checking broker country lists and gathering KYC and tax documents. For international investors seeking a reliable partner, consider Bitget’s trading infrastructure and Bitget Wallet for custody and streamlined onboarding (where available in your jurisdiction). For tax or estate matters, consult a qualified professional.

Ready to explore U.S. equities? Compare broker eligibility now, prepare your W-8BEN or W-9, and take the first step toward global diversification with care and compliance.

Note: This article is informational and not investment advice. Verify the current rules with your broker and consult tax counsel for personal guidance.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.