This article will provide you with a list of the 10 best online brokers for non-US residents alongside its pros, cons, and features.
An online broker is a trading provider that allows its users to open/close positions using a digital platform.
Before the internet became universal, individual investors would allow their broker to place trades on their behalf or must place orders over the phone.
List of 10 Best Online Brokers for Non-US Residents
Below is the list of the 10 best online brokers for non-US residents:
#1. Interactive Brokers
This platform is one of the best options for an online broker platform for non-US residents to trade in the American market.
The broker offers various security classes, including options, stocks, futures, bonds, currency pairs, etc.
Interactive Brokers wide options combined with relatively low fees have attracted millions of retail traders from all over the globe.
Interactive Brokers operates in 31 countries, 125 markets, and 22 currencies. The platform is suitable for intermediate and professional traders and offers educational materials for non-active investors.
- This platform offers international trading tools, a large variety of content on its site, a financial product, and customized day trading features at low margin rates.
- Total asset classes cross 135 world markets across 33 countries.
- Interactive broker fractional share trading features are available with historical data.
- Big investment selection.
- Excellent research and tools.
- More than 17,000 no-transaction-fee mutual funds.
- The website is complex to navigate
#2. TradeStation Global
TradeStation Global is a UK-based brokerage, and it is under the regulation of the top-tier regulatory body, FCA.
This brokerage is the combined product offered by TradeStation and the Interactive Brokers.
Ome of the features of TradeStations Global includes account opening, withdrawal/deposit options, and available products are the same as that of the Interactive Brokers.
Also, you can use both companies’ desktop platforms for your online trading. However, this brokerage offers educational resources, customer support, and fees.
- Educational and analysis
- This platform offers a wide range of tradable assets from stocks to ETFs to futures contracts to cryptocurrencies
- Commission-free trades
- Professional-grade tools and comprehensive trading platform and
- A vast range of tradable securities
- Fully operational mobile application
- The price structure is confusing to new users
- Not easy to navigate
#3. CMC Markets
CMC Markets is a well-known U.K.-based forex broker that was founded in 1989. Over the years, the platform has gained much attention and got listed on the LSE (London Stock Exchange) under the ticker symbol CMCX.
This platform is recommended for all traders because it offers a wide range of products and an accessible, top-feature platform called Next Generation.
This platform is accompanied by an MT4 platform (downloadable) and a mobile app that is easy to navigate. To sum up, the complete platform package for users.
CMC Markets offers a broad spectrum of asset classes. Not only the commonly popular ones like commodities, forex, indices, and individual shares, It also offers government bond listing and 14 cryptocurrencies.
- Low forex trading fees
- Great mobile and web platforms
- Advanced educational and research tools
- This market is a regulated broker in the UK
- CMC Markets is listed on the London stock exchange
- CMC Markets offers advanced risk management tools for its experienced traders
- It offers more than 10,000 trading instruments to trade
- Proprietary trading platform as well as Metatrader 4
- It does not accept U.S. clients
- This platform provides MetaTrader 4 only for desktop
Swissquote is also an investment bank that was established in 1996. This company is split into two parts: a Swiss unit for trading futures, funds, stocks, and options and a company operating in the U.K. for CFDs and forex.
Swissquote is considered a safe bank because it has a banking license, is listed on the Swiss stock exchange, and has an excellent and long track record.
Although Swissquote takes $0 for a minimum account deposit, it charges relatively high fees, especially in ETFs and stock fees, and it also charges for withdrawals.
- Availability of all asset classes, including stocks and ETFs.
- Its forex fees are lower and charge a minimum fee and a percentage fee, which is quite high.
- It has access to many markets and products
- No inactivity fees
- Solid background
- Trading fees are relatively high
- Trading platform selection is confusing
- Some of the research tools are not free
#5. Saxo Bank
Saxo Bank offers a lot of trading essentials, excellent research facilities, and advanced user interfaces.
There are thousands of instruments to choose from different types of assets like CFDs, currency pairs, stocks, etc.
This broker may be best used by professional traders and is unsuitable for new traders because of the relatively high minimum deposits, limited customer support options, and high cost of trading.
Users need to equip themselves with a minimum capital of EUR2,000 before they can open an account with Saxo.
Saxo forex spreads are quite competitive, but different commissions are applied to other instruments provided on the platform.
An excellent and well-designed trading platform drives the Saxo trading experience. Research services are also superb, with Saxo’s research team constantly providing trading ideas. Saxo has a wide-ranging product portfolio, meeting the needs of even heavy traders.
- It has average stock and ETF commissions.
- It has low stock index CFD but high stock CFD fees.
- Good trading platform
- Outstanding research tools
- Large product portfolio
- Options, High bond, and futures fees
- The minimum deposit is relatively high
- Poor customer support
#6. Zacks Trade
Zack Trade is a US-based broker suitable for active traders looking to trade in the foreign stock exchange.
The brokerage is a division of LBMZ Securities, founded in 1978 and regulated by top-tier U.S. regulators FINRA and SEC.
Zacks Trade operates in 218 countries and allows over 91 international exchanges. This brokerage offers three main trading platforms and access to 20 free research reports.
- It has its different fee structure, educational tools, product selection, and customer support.
- The account opening and withdrawal/deposits processes, trading platforms, and research are the same as at Interactive Brokers.
- It falls under SEC regulation, and users have SIPC protection.
- It provides free broker-assisted trading.
- Extensive ETF and stock selection
- Its fees are low
- Good customer service
- Complicated account opening
- No forex or futures
- Complex desktop platform
- Complex research tools
Firstrade is a well-known broker that was established in 1985 under the name of First Flushing Securities.
The platform offers commission-free trades for various assets, including stocks, mutual funds, options, and ETFs.
Firstrade is recommended for both professionals and beginners as it offers multiple trading platforms, access to free research tools, and provide bi-weekly educational seminars.
Firstrade is also highly suitable for international traders as it accepts traders from 60 countries and does not require any tax I.D. number or social security number to register.
Their services are easy to access as it has an iOS and Android mobile app with a dashboard and interesting research features.
- It has low fees. It offers free ETF, stocks, funds, and options trading with low non-trading fees.
- Its trading fees are zero.
- It has low non-trading fees.
- Free fund, ETF, stock, and options trading
- Good research tools
- Excellent educational tools
- No debit/credit cards and electronic wallets for money transfer
- Trade only on U.S. markets
- No live chat
- Not available 24/7
#8. T.D. Ameritrade
T.D. Ameritrade is a US-based online day trading broker established in 1975. The platform is considered safe as it operates under the regulation of top-tier authorities such as FINRA, SEC, and CFTC.
By providing great educational materials and a wide range of asset classes such as forex, stock, ETFs, fund, bonds, options, crypto, and futures, this platform is well-known to be suitable for beginners.
- It offers free ETF and stock trading, while bond, forex, and options fees are also low.
- Futures fees are high.
- Non-trading fees at T.D. Ameritrade is low.
- Low trading fees
- Excellent desktop trading platform
- Great customer service
- Tradable only on U.S. markets
- Accounts are mostly limited to U.S. residents
- No debit/credit cards and electronic wallets for money transfer
#9. Charles Schwab International
Charles Schwab International offers various tools and services to attract all types of investors and is known as one of the best global platforms for ETFs and ETF screeners.
It was established in 1971 and listed on the New York Stock Exchange. The company is regulated by FINRA, SEC, and FCA (U.K.) regarding its safety.
The broker offers a wide range of trading platforms, such as native mobile apps, mobile web platforms, and a desktop platform.
It also has a great research facility as it covers many tools, including detailed fundamental data and trading ideals.
- Account minimum investment: $zero
- Fees: $0 commissions on U.S. ETFs, stock and options trades
- Tradable securities: Stocks, mutual funds, ETFs, options, bonds, futures
- No commissions for trading ETFs and stocks
- Fractional shares are as low as $5
- Robo-advisor with zero% advisory fee
- Relatively high fees for managed accounts and financial advisor assistance
- No direct access to cryptos
Lightspeed is an online broker established in 2000. It is suitable for frequent traders, but the minimum deposit is relatively high: $10,000 for the web-based platform and $25,000 for software, but the trading cost is very low.
Lightspeed specializes in the futures, equities, and options markets; the platform comes with its innovative trading platform, “Lightspeed Trader.”
This broker doesn’t provide many educational materials for inexperienced users, so the features are mainly for the benefit of professional traders.
- Advanced trading platforms
- Low options trading costs
- It offers futures trading
- A vast selection of trading platforms for the different needs of the user.
- Lightspeed offers accounts for trading different assets and with different forms of ownership.
- A Lightspeed user can earn additional income by participating in the affiliate program.
- Basic training materials for working on this platform are available on the broker’s website.
- Minimum deposits are quite expensive.
- Lack of investment programs.
- Lightspeed charges users a commission for non-trading operations like holding positions, maintaining an account, closing an account, etc.
How Do Non-Residents Buy US Stocks?
No citizenship requirement is needed for owning stocks of American companies. While United State investment securities are regulated by U.S. law, there are no specific provisions that forbid investors who are not citizens of the United States from participating in the U.S. stock market.
However, even if a non-U.S. citizen can legally trade U.S. bonds and stocks, they may still be required to consult with an investment firm and use the services of a professional.
There are extra hoops that non-U.S. traders may have to jump through before investing in U.S. stocks.
Foreign holders and owners of U.S.-based assets are subject to an array of U.S. laws intended to protect the interest of the United States.
An international stockbroker can help non-U.S. traders/investors ensure that they are complying with any regulations that govern U.S. bonds and stocks.
Above is a list of the 10 best online brokers for non-US residents in 2022. This broker is listed along sides its advantages, disadvantages, and features.
We have done the job of providing a list of the best brokerage for non-US residents; now it’s your turn to choose from it.
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