can immigrants buy stocks — complete guide

Can Immigrants Buy Stocks

As a clear opening: many readers ask, "can immigrants buy stocks?" The short answer is yes — most immigrants and non‑U.S. citizens can buy and hold stocks and other securities in U.S. and international markets. This article explains exactly how this works, who can open accounts, what documentation and tax forms are required, how visa status may affect investing, and practical steps to get started safely. You will learn legal foundations, tax implications (including the Substantial Presence Test and W‑8BEN), brokerage differences, estate and cross‑border issues, and crypto considerations — plus actionable tips and Bitget recommendations for custody and wallets.

As of 2026-01-21, according to the IRS and major broker guidance, non‑U.S. persons are commonly allowed to hold U.S. securities but must complete required identity and tax certification forms. This guide draws on official IRS and USCIS materials and brokerage account practices to provide a practical, up‑to‑date overview.

Note: This is educational content and not tax, legal, or investment advice. Verify specific broker policies, IRS guidance, and immigration rules with a qualified professional.

Definitions and categories of “immigrant”

Understanding who counts as an “immigrant” for investing and tax purposes matters. When people ask “can immigrants buy stocks,” the answer depends partly on which category they belong to. Common classifications relevant to investing include:

• U.S. citizens — Full rights to open brokerage accounts and face standard U.S. tax rules on worldwide income.
• Lawful permanent residents (Green Card holders) — Treated like U.S. citizens for tax and investment access; can usually open any brokerage account available to citizens.
• Resident alien vs. nonresident alien (tax terms) — The IRS distinguishes based on the Green Card test or the Substantial Presence Test (SPT). Resident aliens are taxed like citizens on worldwide income; nonresident aliens face different U.S. rules for dividends and capital gains.
• Temporary visa holders (H‑1B, J‑1, F‑1, L‑1, etc.) — Often allowed to hold passive investments, but visa rules and broker documentation requirements vary.
• Undocumented persons — May be able to invest using an Individual Taxpayer Identification Number (ITIN) but face practical account acceptance limitations at some brokers.
• Foreign residents living abroad — Citizens of other countries who live outside the U.S.; many brokers permit non‑U.S. residents to open accounts directly or through international divisions.

Why these distinctions matter:

• Brokerage access: Some firms accept only U.S. citizens or residents; others provide international accounts. Documentation and account types differ by category.
• Taxation: U.S. tax treatment (dividend withholding, capital gains, reporting) depends on residency status for tax purposes.
• Immigration compliance: Visa holders must avoid activities that could be interpreted as unauthorized employment; passive investing is usually permitted but active trading or managing a business can be problematic.

Legal right to buy and own stocks

U.S. federal law generally does not prohibit non‑citizens from buying and owning shares in U.S. public companies or foreign securities. The central legal point is simple: owning equity is not limited to citizens. However, there are important regulatory and procedural requirements:

• Brokers must comply with Know‑Your‑Customer (KYC) and Anti‑Money Laundering (AML) rules under the PATRIOT Act and related regulations. That means proof of identity, address, and tax status is typically required.
• National security or sanctions regimes can restrict access: if a person is subject to sanctions or is on restricted‑party lists, a broker must block account opening or transactions.
• Certain account types (retirement accounts, some institutional products) may be limited to U.S. residents.

Differences between U.S. law and broker policies

While federal law permits foreign ownership of securities, broker policies can be more restrictive in practice. Brokers decide which jurisdictions and customer types they accept. Typical distinctions:

• U.S. brokers with international accounts — Major U.S. brokers often provide dedicated international or nonresident accounts with additional documentation and tax forms required.
• Global brokers — Firms with operations in many countries (including international brokerages) commonly accept a wide range of nationalities and residency statuses and may offer local funding rails.
• Local brokers with U.S. market access — Many foreign brokers provide access to U.S. markets through partnerships or direct membership; these may be easiest for non‑residents in a given country.

Some brokers will not accept residents of certain countries for compliance reasons. Others require an SSN (Social Security Number) while many accept ITINs. A few brokers restrict margin, options, or derivative trading for non‑residents.

Opening a brokerage account as an immigrant or non‑U.S. person

When asking "can immigrants buy stocks," practical barriers usually relate to documentation and tax forms rather than a legal ban. Typical documentation and identifiers include:

• Valid government‑issued ID (passport is most common for non‑U.S. persons).
• Proof of address (utility bill, bank statement) in many cases.
• Visa or immigration paperwork where relevant (e.g., Green Card, I‑94, visa stamp) — some brokers ask for immigration status to determine tax residency.
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) — many brokers accept an ITIN when an SSN is not available.
• Tax certification: Nonresident aliens typically submit IRS Form W‑8BEN to certify foreign status and claim treaty benefits.

Brokers also perform identity verification checks and may request additional documents for compliance.

Practical steps to open an account

1. Choose a broker that accepts your country or immigration status. Consider Bitget for crypto and digital assets or internationally oriented brokers for equities.
2. Gather ID and proof of address (passport, utility bill, bank statement) and, if applicable, visa/Green Card documents.
3. Apply online or via paper application. Complete KYC and provide tax information (SSN or ITIN if available).
4. For nonresidents, complete IRS Form W‑8BEN to certify foreign status and claim any tax treaty benefits.
5. Fund the account through accepted methods (wire transfer, local transfer, or other broker methods). Confirm currency conversion and fees.
6. Review and accept broker agreements, including margin, options, or international trading terms.

Broker examples and special account types

Common brokers and account flavors used by immigrants and non‑residents include:

• International divisions of major brokers — Many large brokers operate international desks tailored to non‑U.S. clients.
• Interactive Brokers (example of a global broker) and Charles Schwab international accounts often accept non‑U.S. clients (account terms vary by country). When dealing with broker choices, favor platforms with strong international support and clear tax form handling.
• Local brokers offering U.S. market access — Many domestic brokers around the world give retail clients access to U.S. equities through sponsored access.

Account types differ:

• Domestic taxable brokerage accounts — Standard cash or margin accounts subject to U.S. tax rules as applicable.
• International accounts — Designed for non‑U.S. residents with specific documentation and withholding practices.
• Retirement accounts (IRAs) — Often limited to U.S. residents or citizens; many brokers restrict IRAs for non‑residents.

When choosing a custodian for digital assets and crypto, Bitget and Bitget Wallet are options that accept many international users; check their KYC and regional availability.

Tax implications and reporting

Tax treatment depends heavily on tax residency. When readers ask "can immigrants buy stocks," tax consequences are often the most important practical difference.

• Resident aliens (Green Card holders or those meeting the Substantial Presence Test) are taxed like U.S. citizens on worldwide income: dividends, interest, and capital gains are reportable.
• Nonresident aliens face different rules: dividends from U.S. companies are typically subject to statutory withholding (commonly 30% unless reduced by a tax treaty), while capital gains from the sale of U.S. stocks are often not subject to U.S. federal tax for nonresident aliens who do not meet residency tests — with notable exceptions (e.g., effectively connected income, U.S. real property interests).
• Your home country may tax investment income; many residents must report foreign investment income and may get foreign tax credits.

Dividend withholding and Form W‑8BEN

Dividends paid to nonresident aliens are usually subject to withholding at a statutory rate of 30% unless a tax treaty reduces that rate. To claim a treaty rate, a nonresident files IRS Form W‑8BEN with the broker to certify foreign status and claim treaty benefits. Brokers rely on W‑8BEN to apply the correct withholding rate when paying dividends.

Important practical points:

• W‑8BEN needs periodic renewal (typically every three years or when circumstances change).
• If a nonresident fails to provide W‑8BEN, the broker may withhold at 30%.

Capital gains, residency tests, and the Substantial Presence Test

Nonresident aliens are often not subject to U.S. federal tax on capital gains from the sale of U.S. stocks, but if they become U.S. tax residents they will be taxed on worldwide gains. The Substantial Presence Test (SPT) determines tax residency for those without a Green Card:

• Basic SPT rule: You are a U.S. tax resident for a given year if you are physically present in the U.S. for at least 31 days in the current year and 183 days over the 3‑year period using the weighted formula (current year days + 1/3 prior year + 1/6 second prior year).

If the SPT is met, a temporary visa holder or other non‑citizen may become a tax resident and face full U.S. tax on investment gains and income.

Withholding/reporting forms and statements

Common forms and reporting for nonresident investors include:

• Form W‑8BEN — Certify foreign status and claim tax treaty benefits.
• Form 1042‑S — Issued to nonresident aliens for amounts subject to withholding (dividends and other U.S. source fixed or determinable annual or periodical income).
• Brokers provide year‑end statements with transactional details, and these statements are essential for foreign tax reporting and for claiming treaty benefits.

Special withholding provisions can apply to certain instruments: for example, Section 871(m) addresses dividend equivalents on certain derivatives, and Section 1446(f) applies to dispositions of partnership interests (may create withholding on sale of interests in partnerships holding U.S. assets).

Visa‑specific and immigration considerations

Visa status can intersect with investing rules. Generally, holding passive investments like stocks and ETFs is allowed for many non‑immigrant visas, but active business operation or work that exceeds visa permission is not.

Key principle: Investing is typically passive. Day‑trading as an occasional personal investor is normally fine for many visa categories; however, repeatedly trading as a business, providing investment advice, or operating a trading firm may be considered unauthorized work for employment‑based visas.

H‑1B and other employment‑based visas

H‑1B holders (and many other employment‑based visa holders) may legally hold passive investments, including stocks and bonds. Practical considerations:

• Avoid activities that could be considered active business management or unauthorized self‑employment.
• Frequent high‑frequency trading or operating a trading business (e.g., accepting clients, offering investment services) may raise questions with immigration authorities if interpreted as unauthorized work.
• Brokerage acceptance: some custodians ask for SSN and immigrant documentation; others accept ITINs or passports.

Undocumented immigrants and ITINs

Undocumented persons may be able to open financial accounts and invest, but access depends on the institution’s policies. Many banks and some brokers accept an ITIN (Individual Taxpayer Identification Number), issued via IRS Form W‑7, as a taxpayer identifier when an SSN is unavailable.

Practical notes:

• ITINs enable tax reporting and may be accepted by some brokers and banks for account opening.
• Some brokers require SSNs and will not accept ITINs; acceptance varies widely.
• Tax compliance remains important: investment income may be taxable and must be reported according to U.S. and home‑country rules.

Estate and cross‑border issues

Ownership of U.S. situs assets (including U.S. stocks) by nonresident aliens can trigger U.S. estate tax exposure. Important points:

• Historically, nonresident aliens faced a much smaller estate tax exemption for U.S. situs assets (e.g., historically around $60,000) than U.S. citizens; consult current law because thresholds and rules change.
• U.S. estate tax exposure can be a reason to hold U.S. securities in non‑U.S. custodial structures or to use estate planning tools; planning requires advice from cross‑border tax and estate professionals.
• Certain investment vehicles (e.g., foreign‑domiciled life insurance, treaty planning) can mitigate estate exposure for nonresidents.

Given complexity and frequent regulatory change, seek qualified cross‑border estate and tax counsel if you hold meaningful U.S. assets.

Special instruments and restrictions (options, margin, day trading, PTPs)

Not all products are equally available to non‑residents. Brokers commonly impose additional rules for derivatives, margin accounts, and certain partnership interests:

• Options and derivatives: Many brokers permit options trading for non‑residents but may require extra documentation and may restrict complex strategies.
• Margin accounts: Private lending (margin) approval depends on broker policy and local regulations; some brokers refuse margin to nonresidents or impose higher requirements.
• Pattern day trading rules: U.S. pattern day trading rules (e.g., minimum equity requirements for frequent intraday trading in margin accounts) apply to accounts that meet the regulatory definition; visa holders should be cautious that very active trading could raise immigration concerns if classified as a business activity.
• Publicly traded partnerships (PTPs): These carry specific U.S. tax reporting and withholding rules for nonresidents — certain distributions or dispositions can create withholding or filing obligations.

Some brokers restrict access to specific products for international clients; always confirm product availability and applicable tax withholding before trading.

Cryptocurrency and digital assets for immigrants

Immigrants can generally buy cryptocurrencies through exchanges and platforms that accept non‑U.S. customers. Important caveats:

• KYC/AML compliance — Exchanges and brokerages follow strict identity verification. Some platforms accept non‑U.S. IDs and ITINs; others require SSNs for U.S. accounts.
• Regional availability — Regulatory regimes differ by country; some jurisdictions restrict certain crypto services.
• Tax reporting — Crypto transactions can create taxable events (sales, trades, and some token swaps). Nonresidents must consider both U.S. and home‑country tax obligations.
• U.S. broker token offerings — If buying tokenized exposure to assets through a U.S. broker that offers crypto, the broker’s custody and tax reporting rules apply; use platforms with clear treatment of digital assets.

For custody and wallet use, consider Bitget and Bitget Wallet for international accessibility and KYC support. Verify whether Bitget supports your country and specific token services.

Choosing a broker and practical tips

Practical criteria when selecting a broker as an immigrant or non‑U.S. person:

• International client support and clear onboarding for your country/status.
• Tax‑form handling (W‑8BEN processing, Form 1042‑S issuance) and clear guidance on withholding.
• Accepted funding methods: international wires, local transfers, multicurrency accounts.
• Fees: account fees, foreign exchange conversion costs, and withdrawal fees.
• Product availability: equities, options, margin, and any restrictions for non‑residents.
• Customer service responsiveness and language support.

If you trade crypto or tokenized products, prioritize platforms like Bitget that offer international services and Bitget Wallet for custody. Keep in mind that platform availability and features vary by jurisdiction.

Risks, compliance, and best practices

Best practices to reduce risk and remain compliant:

• Maintain careful records of transactions, deposits, and year‑end broker statements.
• Understand and comply with both U.S. and home‑country tax rules; get professional tax advice for cross‑border situations.
• Renew and update Form W‑8BEN or other tax forms when required.
• Be cautious about frequent, professional‑level trading if you are on a work visa — avoid activities that could be interpreted as unauthorized employment.
• Check sanctions lists and ensure compliance with export control and sanctions regimes.
• Use reputable brokers and custodians, favoring platforms that clearly document international client policies.

Special case — immigrant investor visas (EB‑5 and investor routes)

Investor visas such as EB‑5 require qualifying investments in job‑creating U.S. commercial enterprises (direct investment or regional centers historically). Important distinctions:

• Buying publicly traded stocks generally does not qualify for EB‑5 immigration purposes. EB‑5 seeks job‑creating, at‑risk investment in qualifying projects or businesses, not passive purchases of listed equities.
• If you are pursuing an investor visa, consult immigration counsel: eligible investments, documentation, and project requirements are specialized and distinct from retail investing.

Frequently asked questions (concise answers)

Q: Can an H‑1B buy stocks? — Yes. H‑1B holders generally may buy and hold stocks as passive investments, but should avoid engaging in unauthorized employment or running an investment business.

Q: Can undocumented immigrants invest? — Some undocumented immigrants can invest. Obtaining an ITIN (Form W‑7) allows tax reporting and may be accepted by some brokers or banks, but acceptance varies by institution.

Q: Do nonresidents pay U.S. capital gains tax? — Nonresident aliens are often not subject to U.S. federal tax on capital gains from trading U.S. stocks, but this depends on residence status, type of income, and specific exceptions. If you are a U.S. tax resident, capital gains are taxable.

Q: What is an ITIN and when is it needed? — An ITIN is an Individual Taxpayer Identification Number issued by the IRS for tax filing purposes when an SSN is not available. Non‑U.S. persons who must file U.S. tax returns or be identified for U.S. tax reporting may apply for an ITIN using Form W‑7.

Q: What is Form W‑8BEN? — W‑8BEN is the IRS form used by nonresident aliens to certify foreign status and claim any available tax treaty benefits to reduce withholding on U.S. source income like dividends.

Q: Will my broker issue tax forms? — Brokers that serve non‑U.S. clients typically issue Form 1042‑S for withheld amounts and may provide year‑end statements needed to file taxes in your home country.

Resources and further reading

Use official and reputable sources for the most current rules and guidance:

• IRS pages on W‑8BEN and ITIN/W‑7 for tax forms and filing procedures (check IRS.gov for updates).
• USCIS guidance on visa rules and permitted activities for visa holders.
• Broker international account pages (look for international or non‑resident account guidance from major brokerages) for documentation requirements and account options.
• Financial education sites such as Investopedia for plain‑language explainers on dividends, capital gains, and tax residency tests.
• Consult qualified tax and immigration advisors for personalized advice.

As of 2026-01-21, according to IRS guidance and standard brokerage practice, W‑8BEN remains the primary document nonresidents use to certify foreign status and claim treaty benefits. Always verify current procedures with the IRS and your chosen broker.

Final notes and next steps

You’ve learned the core answer to "can immigrants buy stocks": yes — but the path depends on your immigration and tax status, the broker you choose, and the instruments you trade. Practical next steps:

• Decide whether you prefer a U.S.‑facing broker, an international broker, or a local broker with U.S. market access.
• Gather identification, proof of address, and tax identifier (SSN or ITIN) and prepare to submit Form W‑8BEN if you are a nonresident.
• Keep meticulous records and consult tax or immigration counsel for complex situations.

Explore Bitget’s international services and Bitget Wallet as one option for digital asset custody and trading. If you need help comparing brokers or understanding tax forms, consider scheduling a consultation with a tax professional.

Further exploration: review broker onboarding guides, IRS resources on nonresident taxation, and USCIS information on permitted activities for your visa class. Staying informed and compliant will let you invest with clarity and confidence.