Charles Schwab For Non-U.S. Residents
Charles Schwab is a major discount broker in the United States with $7.8 trillion in total client assets and more than 32 million brokerage accounts. It conducts over 6 million trades daily, serving both individual and institutional clients.
But can non-U.S. citizens use Schwab's highly rated services? Read on to learn more.
Can International Citizens Open a Schwab Account?
Yes, non-U.S. citizens can open a Charles Schwab account and access U.S. markets directly by signing up at international.schwab.com.
You’ll need a Tax ID or Social Security Number, a passport or government ID, recent proof of residency (like a utility bill), employer's details (if applicable), and the ability to print, sign, and upload required documents to open your account.
On the Schwab International site, you'll choose your residence from a dropdown list, which includes roughly one hundred and fifty countries, covering a large portion of the globe.
Free Charles Schwab Account
Visit Schwab Website
Are There Any Limitations/Minimums?
You can enjoy Schwab’s broad investment options, expertise in financial advice, and commission-free trades. However, there is a minimum requirement of $25,000 USD to open an individual or joint account. This is the main limitation for non-U.S. citizens wishing to open a Schwab International account.
Charles Schwab Alternatives For Non-U.S. Residents
If you're unable to meet the $25,000 requirement to open an international account with Charles Schwab, consider other options.
Fortunately, there is a U.S. brokerage firm that welcomes international investors -
Zackstrade. The company has some
of the lowest margin rates in the industry, offers a professional trading platform, and access to
91 exchanges around the world. Learn more about the company in the
Zackstrade Review.
Open Zackstrade Account
Visit ZacksTrade Website
Another great U.S. company for European investors is called
Firstrade.
It offers $0-commissions, but it is available in fewer countries than Zackstrade.
Learn more Firstrade Review.
Open Firstrade Account
Visit Firstrade Website
Alternative to Schwab for Non-U.S. Citizens
Now we'll continue to a quick overview of ZacksTrade, an online broker that, as you may have guessed,
was started by the same guy who founded Zacks Investment Research. ZacksTrade is a discount broker
with a rather unique commission structure and some really interesting partnerships with investment
research providers.
What Can I Trade With a ZacksTrade Account?
The ZacksTrade platform currently lets you trade stocks, options, mutual funds, ETFs and bonds (corporate and government). Futures and FX trading are not supported.
Stocks, ETFs and Mutual Funds
Stocks and ETF trades are $0.01/share with a $1 minimum at ZacksTrade. Placing a trade for a penny stock (anything trading under $1/share) will cost 1% of the total trade value, also with a $1 minimum. Depending on the size of your account, this structure could be disadvantageous for any heavy penny stock traders, as a flat commission would generally be a lot cheaper than 1% of a large trade. Mutual fund trades are a fixed $27.50 at ZacksTrade.
Options
Options trades are $1 for the first contract and $0.75 per each additional contract, however surprisingly there is no fee for exercising options.
Bonds
Buying or selling corporate and municipal bonds at ZacksTrade will cost 0.1% of the face value plus $3 per bond if the trade’s face value is for $10,000 or less. If the face value is greater than $10,000 the commission is equal to 0.025% of the face value plus $3 per bond. The commission schedule for Treasury bonds follows a similar structure where the charge is 0.025% of face value plus $3 per bond for trades under $1million in face value and 0.005% of face value plus $3 per bond for trades greater than $1million in face value.
Other Account Requirements and Charges
In line with most online brokers, ZacksTrade doesn’t charge any account maintenance fees; however, they do require a minimum account balance of $250. One drawback to ZacksTrade is that they do charge you for data packages. For example, U.S. stock data costs $10/month, but this charge is waived if you trade at least $30 in commission per month).
Unlike most online brokers, ZacksTrade only gives you one free ACH transfer per month (each additional one costs $1). There are additional fees for using wire transfers or even physical checks.
Their margin rates are surprisingly low, with 8.83%
being the highest rate for those borrowing $100,000 or less.
Trading Platforms
ZacksTrade has a website that is strictly used for account management (no trading), but does support trading via its web browser, desktop, and mobile app platforms. Both the web browser and desktop platforms offer the standard features you’d expect from most brokers, but the charting capabilities on the desktop platform are notably superior. Their mobile apps for both phone and tablet are fairly straightforward in appearance and offer basic charts and real-time quotes. One notable functionality is they offer direct access routing, a feature that many other mobile trading platforms don’t have.
Investor Education
Probably one of the biggest selling points of a ZacksTrade account is the free investor education and research products it offers through partnerships with investment companies, such as Zacks Investment Research. They have partnerships with other online research sites, such as Morningstar, 24/7 Wall Street, and Seeking Alpha. For investors that regularly read articles from these partner sites (many of which are subscription only), these partnerships alone could make a ZacksTrade well worth it.
Summary
In conclusion, a ZacksTrade account is quite unique in terms of its commission structure and partnerships with providers of investment information. Its suitability will depend on the individual investor’s style. A ZacksTrade account would likely be a good match for an investor who places smaller sized orders and enjoys reading investor research pieces, but likely be a poor choice for a heavy penny stock trader.
Countries Accepted
If you are an international investor from one of these countries -
Belgium, China, France, Germany, Ireland, Israel, Italy, Japan, South Korea,
Mexico, New Zealand, Poland, Singapore, Taiwan, United Kingdom (Great Britain),
Argentina, Austria, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus,
Belize, Benin, Bermuda, Bhutan, Bolivia, Bosnia and Herzegovina, Brazil, Brunei Darussalam, Bulgaria, Canada, Cayman Islands, Chile, Colombia, Comoros,
Costa Rica, Croatia, Cuba, Cyprus, Czech Republic, Denmark, Dominican Republic, Estonia, Finland, Greece, Hungary, Iceland, India, Indonesia, Iran, Iraq,
Jordan, Kazakhstan, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Monaco, Mongolia, Netherlands, New Zealand, Norway, Oman, Pakistan,
Palau, Panama, Paraguay, Peru, Philippines, Portugal, Puerto Rico, Qatar, Romania, Russian Federation, Saudi Arabia, Singapore, Slovakia, Slovenia,
South Africa, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Turkey, Ukraine, United Arab Emirates, Vietnam -
then go to Zackstrade »
Open Zackstrade Account
Visit ZacksTrade Website
Updated on 7/2/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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