US Expat Brokerage Restrictions: What Changes After You Move

Short answer: moving outside the United States does not automatically mean every US brokerage account will be closed. The outcome depends on the brokerage, your new country of residence, the account type, and the products you hold. A firm may keep the account open while blocking new mutual-fund purchases, margin, options, deposits, advice, or all purchases except liquidations. In a smaller set of countries, it may require a transfer or limit the account to selling and withdrawing.

What does Fidelity say happens when a customer moves abroad?

Fidelity's current public policy is more specific than the common claim that it simply closes every expat account. Fidelity says it does not open accounts for new customers residing outside the United States. For existing customers who move abroad, it limits products and services: discretionary management ends, new mutual-fund purchases are blocked, contributions to existing 529 and HSA accounts stop, and some countries face additional restrictions. Fidelity also says existing mutual-fund holdings can generally remain until the customer chooses to sell, except for certain holdings tied to terminated managed-account relationships.

Read the policy directly on Fidelity's Trading FAQs for customers residing outside the United States. Because the country-specific result is not fully published, confirm your destination with Fidelity before relocating.

Why do brokerage restrictions vary by country?

A US broker serving a resident of another country can trigger local securities-registration, product-distribution, tax-documentation, sanctions, anti-money-laundering, and client-protection rules. Those obligations differ by jurisdiction and by product. That is why one customer may retain stock and ETF trading while another is placed in a sell-only status.

FATCA is often blamed for every expat brokerage restriction, but that is too broad. FATCA primarily imposes reporting and withholding duties involving foreign financial institutions and certain foreign assets. It can contribute to compliance cost, but a brokerage's residence policy also reflects local licensing, sanctions, know-your-customer controls, and the firm's own risk limits.

What can actually change in an existing account?

Possible change	What it means	What to ask
Mutual-fund purchase block	You may keep existing shares but cannot buy more; dividend reinvestment may follow separate rules.	Can dividends reinvest, and can I buy US-listed ETFs?
Feature restrictions	Margin, options, managed advice, bill pay, debit cards, or new account types may be unavailable.	Which features stop in my destination country?
Sell-only status	You can liquidate and withdraw but cannot deposit or buy.	Can I transfer securities in kind to another broker?
Transfer or closure request	The firm gives a deadline to move assets or close the relationship.	What is the deadline, transfer method, and treatment of fractional shares?

Brokerage checklist before moving abroad

1. Name the exact country. Ask compliance or the international desk about permanent residence, not travel.
2. List every account and product. Brokerage, IRA, Roth IRA, HSA, 529, managed account, mutual funds, options, and margin can be treated differently.
3. Request the answer in writing. Save the secure message or policy page with the date.
4. Download records. Keep statements, tax lots, acquisition dates, beneficiary details, and recent tax forms.
5. Open a receiving account while eligible. Do this before a restriction makes transfers harder.
6. Prefer an in-kind transfer when appropriate. It can avoid unnecessary sales, but confirm which assets the receiving firm accepts.
7. Review tax consequences. A forced sale can realize gains; buying non-US pooled funds can create PFIC reporting for US taxpayers.

Which brokerages explicitly serve eligible expats?

Charles Schwab International

Schwab markets brokerage services specifically to eligible US expatriates and international investors, including access to US stocks, ETFs, bonds, international wires, and US tax reporting. Availability still depends on residence and eligibility. Check Schwab's official US expatriate investing page.

Interactive Brokers

Interactive Brokers serves residents of many countries through the appropriate regional entity and is often useful when multi-currency funding and broad market access matter. Entity, investor protection, product access, and tax documents can differ by residence. Compare the practical tradeoffs in the IBKR vs Schwab expat brokerage guide and the Interactive Brokers guide for US expats.

A local brokerage

A local account may solve access and currency issues, but US taxpayers need to screen investments carefully. Non-US mutual funds and ETFs are frequently passive foreign investment companies, which can create punitive tax treatment and Form 8621 reporting. Account values can also affect FBAR and Form 8938 reporting.

A practical decision path

• If your current firm confirms normal stock and ETF trading in your destination, keeping the account may be simplest.
• If the account will become sell-only, arrange an in-kind transfer before the move or restriction date.
• If you need multi-currency or multi-market access, compare IBKR with Schwab International for your country.
• If you use a local broker, evaluate PFIC, FBAR, Form 8938, estate-tax, and currency consequences before buying funds.

Brokerage policies can change and country rules are not uniform. Verify the current policy directly with each firm and consult a qualified cross-border tax or financial professional for advice about your specific accounts.