Non-resident alien, want to open a brokerage account in the US. I want to start with $10,000. What are my options?

[lilithdom]

I have about $10,000 cash and I want to open a brokerage account in the US I have $10,000 more sitting in a US savings account earning $0 in interest.

I'm not a resident nor I have an SSN.

I do however have a physical address (an apartment) and I have a US LLC with a ITIN and EIN and a bank account (I'm the sole proprietor).

I've heard that over $10k you can open a brokerage account in the US (I know people that have done it) I don't know which companies/bank offer them.

Can I open a brokerage account in the LLC name? Is it easier/ the same?

 

[mfinnergab]

@lilithdom I don't know if you can open the brokerage account as a corporation.

I'm an NRA and currently have an account with Fidelity. For years they tolerated my lack of a US address OK, but recently I found they've restricted me from buying any ETFs. Formerly, I was only restricted from buying mutual funds but I think the restriction against ETFs is significant.

I'll be watching this space, as I will change brokerages to be able to buy ETFs again.

 

[tiger007]

@mfinnergab Quick question, did you have to report your capital gains to the USA or only the country you were resident?

 

[mfinnergab]

@tiger007 Neither, as the funds are in an IRA. The country where I'm resident doesn't care about the money until I bring any of it here in my retirement.

 

[lostnotfound]

@lilithdom You can definitely open a brokerage acct as a business. I haven’t done it but I know it exists at most major brokerages. Afaik there is no minimum. The only other option really is Interactive Brokers as a nonresident or go through the lengthy itin process.

You will be limited to non marginable if you want to day trade or marginable with pdt rule under $25k but this shouldn’t affect you unless you’re day trading.

 

[tyler112]

@lilithdom Is there a reason you can't open an account with a brokerage licensed to operate in your area?

If you want exposure to the US market, there are plenty of ETFs available in foreign markets that track US indices. E.g., iShares has a UCITS-compliant SP500 ETF trading as CSPX on LSE.

If you're not a US citizen, PR, or resident, then you have no PFIC worries.

 

[eee27]

@lilithdom Check if Schwab International accepts clients from your country of residence. https://international.schwab.com/

Officially you need $25k to open an account, but I've heard of people getting an exception to start with less.

 

[psalm51flower]

@lilithdom Have the NRAs with US brokerage accounts considered the estate tax ramifications of dying owning US stock in a U.S. brokerage or even through a U.S. LLC? If so, you might reconsider that structure. - US international tax attorney here.

 

[roovis]

@psalm51flower Isn't it just 30% withholding tax for dividends and 0% tax gains for non residents?..

 

[sevenz]

@lilithdom As an FYI, if you are non-US and are the sole owner of a US LLC, the LLC will most definitely have a Form 5472 via a proforma 1120 filing requirement as there will be reportable transactions between you and the LLC that will warrant reporting.

Also, if you invest in US equities and own them when you die, anything above $60K will be subject to US estate tax.