Guides · Stocks

How to buy shares of foreign companies: three routes

Shares of Apple or Coca-Cola trade on US exchanges. There are three routes to buying them — which is open depends on your country and citizenship.

6 min read

The gist in a minute

Three routes: an international broker, a local broker with US access, or a fund.
Before opening an account check whether the broker accepts your country and how to withdraw money.
The US withholds 30% or 15% on dividends; tax on profit is paid in your country.

Route 1. An international broker

You open an account with a broker that serves clients from many countries, transfer money there and buy shares directly on a US exchange.

Pros: thousands of companies and funds, low commissions, securities held in the US in your name.
Cons: an application and identity check in English, an international transfer, and you calculate taxes yourself.

The best-known example is Interactive Brokers: how to open an account and what to expect is covered in a separate guide. Important: brokers do not accept clients from every country and may restrict by citizenship — check the broker's site on the day you open the account.

Route 2. A local broker with access to US exchanges

In Kazakhstan, Armenia, Georgia, European countries and a number of others, local brokers give access to US stocks. The account opens in your language and is funded by a local transfer.

Pros: easier to open and fund, support in your language, sometimes the broker withholds the tax itself.
Cons: commissions are usually higher, the choice narrower, and protection depends on the laws of the broker's country.

Route 3. A fund instead of single stocks

If the goal is not one company but “investing in the US market”, a fund is simpler: it holds hundreds of companies at once. For residents of Europe and those who care about taxes, European funds fit — see the UCITS guide.

What to check before opening an account

Whether the broker accepts residents and citizens of your country. Rules change; trust only the broker's site.
Who supervises the broker and whether accounts are insured against its bankruptcy.
How to deposit and withdraw money and what it costs.
Fees: per trade, for the account, for inactivity, for currency exchange.
Which securities are available: some brokers do not sell US funds to residents of Europe.

On sanctions and restrictionsFor citizens of Russia and Belarus access to foreign securities is heavily restricted: some brokers do not open accounts, some securities are blocked, transfers are difficult. Before sending money, ask the broker whether you will be able not only to buy but also to sell the security and withdraw the money.

Taxes

The US withholds tax on dividends of US companies before they arrive: 30%, or usually 15% with a tax treaty of your country and a signed W-8BEN form. Tax on profit from a sale is paid in your own country. Details are in the investor taxes guide.

What you risk

Currency: the shares are in dollars, and your currency's rate affects the outcome.
Access: rules for non-residents can change.
One company: even a large stock can halve and not recover for years.

A comparison of brokers by country is in the brokers guide.

Before buying, look at the company: growth, profit, debt and price over 20 years.

Analyse a company →

A list of 800 companies on US exchanges with a page for each.

All companies →

This article is educational and is not investment, tax or legal advice. Brokers' terms and restrictions change — check them on the day you open an account.