Why Foreigners Invest Money In The Us

Investing in US stock market from abroad as a foreigner

I don't live in the US, but want to invest in the US stock market. I'm also not a US citizen.

How can I do this?

I have a SS number because I worked in the US for some years, but have no present physical US address. I could use a relative's, but would prefer not to.

I understand local brokerage firms in Israel, UK, etc. offer ways to invest in the US; however, I don't have those options since I live in a developing country where investment options are scarce.

Any ideas?

level 1

I understand local brokerage firms in Israel, UK, etc. offer ways to invest in the US; however, I don't have those options since I live in a developing country where investment options are scarce.

Perhaps a good idea to share in which country you live.

Also, most brokers will allow you to invest in most (if not all) foreign developed markets. You do not need an American broker for this..

level 1

Where do you live? Most developing countries have broker accounts on local or international banks. The only difference would be how it is taxed in your host country, rest is same and the commissions will be different.

level 1

This is a very, like legal question.

When I set up my accounts, I always had the option to trade in the US and other exchanges. I just needed to do the relevant paper work, and it didn't cost me any extra in setting up the account. Contact your broker and see if they can help.

level 1

Is that actually a good idea though? I'm also a foreigner and my broker allows me to trade on US stock markets, so I took a huge chunk of my initial investment, converted it to US dollars, and bought VOO. I tell myself that it's a form a diversification, but I feel like it would have been a better idea to buy some EUR-based S&P500-tracking ETF on Xetra instead. Currency conversion sucks.

level 1

TD Ameritrade is a low fee online foreign friendly broker