Best Expat Brokerage: IBKR vs Schwab Compared

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Most US brokerages were not designed for people who leave the country. Fidelity restricts existing accounts when you update your address to France. Vanguard quietly moves accounts to hold-only status in dozens of countries. TD Ameritrade no longer exists — it fully merged into Charles Schwab in May 2024. If you are a US citizen living abroad or preparing to move, two brokerages stand out from the rest: Interactive Brokers (IBKR) and Charles Schwab International. They take genuinely different approaches, and the better choice depends on what you actually need.

What Breaks When You Move Abroad

When a US brokerage learns your address is in a foreign country, it faces a compliance decision: does it hold regulatory licenses in that country, and does maintaining your account create legal risk? Most decide it does not want the exposure. The result is a cascade of restrictions: no new mutual fund purchases, no advisory services, no new stock options grants, eventually account closure.

Fidelity's international coverage is limited to roughly 20–30 countries where it holds regulatory licenses — primarily the UK, Canada, Australia, Hong Kong, Singapore, and select EU markets. Move to Germany, Thailand, or Colombia, and your Fidelity account may be placed in hold-or-sell mode with no timeline for resolution. If you are reading this before you move, the action item is in the checklist at the bottom of this article.

For a broader view of what happens to US brokerage accounts abroad, read the guide to expat brokerage account closures and alternatives. This article focuses specifically on the two options that work most broadly: IBKR and Schwab.

Interactive Brokers for US Expats

IBKR has the broadest country coverage of any US broker. It operates in more than 200 countries through a network of legal entities: IBKR LLC (US), IBKR UK/Europe, IBKR Canada, IBKR Singapore, IBKR Australia, and others. The company's reach is a structural advantage — it built an international business from the start rather than retrofitting a domestic product for expats.

IBKR Lite vs. IBKR Pro

The most important distinction for expats is between IBKR Lite and IBKR Pro.

IBKR Lite is commission-free on US stocks and ETFs, but it requires a valid US residential address. If you move abroad and update your address, your Lite account will need to transition. Lite is only available to clients under IBKR LLC, the US entity.

IBKR Pro is available to clients with foreign addresses and is the version most US expats use. Commissions on the fixed plan are $0.005 per share with a $1 minimum and a maximum of 1% of trade value. For larger trades, the tiered plan reduces this further. There are no inactivity fees — IBKR eliminated the monthly $10 fee entirely in July 2021.

When you move abroad and update your IBKR address, the system assigns you to the entity covering your new country. If you move from the US to Germany, for example, your account transitions to IBKR UK/Europe. IBKR does not force you to liquidate — it transfers assets in-kind to the new entity. This process is more administratively involved than staying with Schwab International, but it avoids the forced sell-off that other brokerages impose.

Countries and Restrictions

IBKR's only hard exclusions are countries under OFAC comprehensive sanctions: Cuba, Iran, North Korea, and the Crimea, Donetsk, and Luhansk regions. Beyond that, IBKR also screens against the FATF high-risk list. In July 2025, IBKR paid an $11.8 million settlement to the US Treasury's Office of Foreign Assets Control for historical violations from 2016 to 2024 related to accounts in sanctioned territories — a reminder that these restrictions are enforced even at the institutional level. Outside sanctions, IBKR's coverage is essentially global.

Multi-Currency Accounts and Forex

IBKR's most distinctive feature for expats is the ability to hold multiple currencies simultaneously in a single account. You can hold USD, EUR, GBP, JPY, CHF, CAD, SGD, HKD, AUD, and more than 20 additional currencies at once. When you buy German stocks on the Frankfurt exchange, the position settles in euros — no forced conversion back to dollars.

Currency conversion via IBKR Pro's IdealPro platform costs 0.002% of trade value with a $2 minimum — one of the lowest forex rates of any retail broker. Converting $50,000 from USD to EUR costs roughly $10. By comparison, a typical bank wire conversion on the same amount costs $200 to $1,000 in spread.

IBKR does not issue a debit card for direct ATM withdrawals. To access your IBKR cash locally, you wire funds to a local bank account and use that bank's card. The first wire per month is free; subsequent wires cost between $0.95 and $9.54 depending on the transfer type. This is fine for moving large amounts periodically, but it is not ideal if you need regular small cash withdrawals — which is where Schwab has a clear practical advantage.

Charles Schwab International

Schwab International (at international.schwab.com, separate from domestic schwab.com) is Schwab's purpose-built product for US citizens and non-US persons living outside the US. It is the most practical daily-banking solution among US expat brokerages and serves more than 100 countries.

Account Structure

As of 2025, Schwab International has no minimum balance requirement — the previous $25,000 minimum was waived. Online trades of US-listed stocks and ETFs are commission-free. The account is USD-only; you cannot hold EUR or other currencies in the brokerage itself.

Schwab issues a consolidated 1099 to all US citizens regardless of foreign address, covering dividends, interest, capital gains, and miscellaneous income for IRS reporting. The account itself is held domestically and does not trigger FBAR reporting obligations (FBAR applies to foreign financial accounts, not US-domiciled accounts like Schwab). For more on FBAR thresholds and reporting, the guide to expat PFIC and reporting rules covers the overlap between investment accounts and foreign account reporting.

The ATM Advantage

The Schwab Bank High Yield Investor Checking Account — opened separately from the brokerage but linked under the same login and free to maintain — offers unlimited worldwide ATM fee reimbursements, no foreign transaction fees on debit card purchases, and no monthly maintenance fees. Every third-party ATM fee anywhere in the world is credited back at the end of the month.

The checking account earns 0.45% APY on cash (as of June 2026). For higher yields on uninvested cash, you can move funds manually into Schwab's money market fund SWVXX (approximately 4.97% seven-day yield as of June 2026) from within the linked brokerage account. This requires a manual purchase — it does not happen automatically through the default cash sweep.

One important caveat: Dynamic Currency Conversion (DCC) fees are not reimbursed. When an ATM or merchant prompts you to pay in your home currency (USD) instead of the local currency, always choose local currency. Accepting DCC gives the ATM or merchant's bank a 2–5% conversion markup that Schwab does not rebate.

Country Restrictions

Schwab International is not available in France, Italy, or Canada, and has patchy coverage in some other EU member states. If you live in one of these countries, IBKR is the primary alternative. Schwab also applies OFAC sanctions restrictions identical to IBKR's.

If you currently have a standard US Schwab account and are planning to move abroad, do not simply update your address on the domestic platform and wait. Proactively contact Schwab International and initiate an account transfer before your move to avoid having your domestic account restricted mid-transition.

What EU Residents Need to Know: MiFID II and US ETFs

If you move to a European Union country, a regulation called MiFID II/PRIIPs creates a significant inconvenience regardless of which broker you use. European securities rules require brokers operating in the EU to provide a Key Information Document (KID) before selling a packaged retail investment product. Most US-domiciled ETFs — including popular funds like VTI, VOO, and QQQ — have not produced KIDs because they are designed for US investors.

The result: IBKR's European entity (IBKR UK/Europe) cannot sell you most US ETFs if your account is under that entity. Schwab International EU-resident clients face the same restriction when trading US ETFs.

There are two practical workarounds. First, some US expats in Europe maintain their IBKR account under the US entity (IBKR LLC) by keeping a valid US address — a family member's address or a virtual mailbox service. This keeps access to US ETFs intact, though it technically requires a valid residential US address per IBKR LLC's terms. Second, some expats pivot to Irish-domiciled UCITS ETFs (such as those from Vanguard Europe or iShares) that do have KIDs. For US citizens, however, UCITS ETFs are passive foreign investment companies (PFICs) subject to punitive US tax treatment — high effective rates on gains and complex Form 8621 reporting. The PFIC problem for US expats in the EU is one of the most structurally painful aspects of living in the EU as a US citizen; the guide to expat dividend withholding and accounts covers which account types minimize the damage.

Feature Comparison: IBKR Pro vs. Schwab International

Feature	Interactive Brokers Pro	Charles Schwab International
Countries served	200+ (excluding OFAC-sanctioned)	100–150 (France and Italy excluded)
Account minimum	$0	$0 (waived 2025)
US stock/ETF commissions	$0.005/share; $1 min	$0
Inactivity fee	None (eliminated July 2021)	None
Currency accounts	Multi-currency (25+ currencies)	USD only
Currency conversion cost	0.002%, $2 min (IdealPro)	Via external bank (no in-account conversion)
International stock exchanges	150+ global exchanges	US markets only
Debit card / ATM access	No card; wire transfers only	Unlimited global ATM rebates (linked checking)
Foreign transaction fees	N/A (no card)	None on debit card
Idle cash yield (June 2026)	~4.8% on USD cash balances (Pro accounts)	0.45% checking; ~4.97% SWVXX money market
Consolidated 1099	Yes, for US citizens	Yes
PFIC reporting tool	No; raw data only	No (no foreign ETFs offered)
MiFID II restriction (EU)	Affects EU entity; US entity workaround exists	Affects EU-resident clients
Margin rates (USD)	~5.83–6.83% (low)	~8–11% (higher)

Fidelity and Former TD Ameritrade: What to Do Before You Move

Fidelity does not offer an international account equivalent to Schwab International. When you update your address to a foreign country outside Fidelity's approximately 20–30 supported markets, your account typically moves to a restricted status where new purchases are blocked and eventually closure may be required. This is not a future risk — it is an active policy for most EU countries and much of Latin America and Southeast Asia.

TD Ameritrade no longer exists as a separate entity. The migration to Charles Schwab completed in May 2024. All former TDA accounts are now Schwab accounts subject to Schwab's international policies. If you were a TDA customer living abroad, verify your account status with Schwab International directly — Schwab's country restrictions and documentation requirements differ from TDA's historical approach, and some accounts that functioned under TDA may now be flagged for review.

The practical step for Fidelity users planning to move: convert all mutual fund positions to equivalent ETFs before leaving the US (mutual fund purchases are the first thing blocked, and you cannot convert or exchange into new ones after restriction), then initiate an ACATS transfer to IBKR or Schwab International while your address is still US-based.

Which Should You Choose?

The answer depends on three things: where you live, whether you need multi-currency investing, and how you access cash day to day.

Choose IBKR if:

• You live in France, Italy, Canada, or another country Schwab does not serve
• You invest in non-US markets — European, Asian, or emerging market stocks — and want to hold or settle in local currencies
• You make large periodic transfers and want institutional-level forex rates (0.002%)
• You use margin and want significantly lower rates than Schwab offers
• You want access to the full global exchange ecosystem (150+ markets)

Choose Schwab International if:

• You are in one of the 100–150 countries Schwab supports
• You primarily invest in US-listed index ETFs and stocks
• You need a debit card that works fee-free at ATMs everywhere in the world — the practical cash access case is significantly easier with the linked Charles Schwab checking account
• You want simpler account management without the IBKR entity-migration complexity
• You want a US phone number and customer service that is relatively responsive

Many expats hold both. IBKR Pro for long-term investing in a multi-currency account, and Schwab International checking for daily expenses and cash withdrawals. This combination provides complete coverage: institutional forex rates when moving larger sums, free ATM access everywhere, and unrestricted access to US index ETFs.

Pre-Move Brokerage Migration Checklist

1. Identify your destination country. Confirm whether Schwab International serves it at international.schwab.com/restricted, and confirm IBKR serves it at the IBKR country list.
2. If you have Fidelity or Vanguard accounts: Convert all mutual fund holdings to ETF equivalents before updating your address. Initiate an ACATS in-kind transfer to IBKR or Schwab International while your address is still US-based. Do not update your address first — the restriction may block the transfer.
3. If you have a TD Ameritrade account: Your account is now Schwab. Contact Schwab International and confirm country eligibility before your move.
4. Open your IBKR Pro account or Schwab International account while you still have a US address. Both are faster to open pre-move. IBKR requires identity verification and a W-9 for US citizens; Schwab requires passport and proof of foreign address (open after arrival).
5. Open the Schwab Bank High Yield Investor Checking Account separately. This is linked to but distinct from the brokerage and provides the unlimited ATM reimbursement. Activate the Visa debit card before you leave.
6. Understand the IRS reporting implications. Neither IBKR nor Schwab International accounts require FBAR reporting since both are US-domiciled accounts. Your Form 8938 threshold ($50,000 for single filers living abroad) applies to foreign financial accounts — not these US accounts. Read the PFIC and expat investment reporting guide if you plan to hold foreign-listed investments.
7. If you move to an EU country: Understand the MiFID II restriction on US ETFs before you arrive. Decide whether you will maintain a US address for your IBKR account or adjust your investment strategy. The FEIE vs. Foreign Tax Credit choice interacts with how you manage your overall US tax picture as an EU-resident investor.

Data note: commissions, account minimums, interest rates, and country availability were verified from official IBKR and Schwab International sources in June 2026. Both firms update their terms — verify directly before opening an account.

Bottom Line

Schwab International wins on day-to-day usability: $0 commissions, unlimited fee-free ATM access worldwide, and straightforward account management. IBKR wins on investment breadth: multi-currency settlement, 150+ global exchanges, dramatically lower forex costs, and coverage of countries Schwab does not serve. The two are complements more than competitors — the expat who holds both has near-complete brokerage coverage without compromising on either daily cash access or long-term investment flexibility.

The worst outcome is the most common one: staying with Fidelity or Vanguard, doing nothing, and getting an account closure notice six months after you move. Moving accounts while you still have a US address takes a few days and saves weeks of forced liquidation headaches.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Brokerage policies, fees, and country availability change. Verify current terms directly with IBKR and Charles Schwab International before making any account decisions.

Sources Checked

• Charles Schwab International: international.schwab.com
• Interactive Brokers: Country availability list
• IBKR: Spot currency commissions
• OFAC: IBKR settlement (July 2025)
• IRS: Instructions for Form 8621 (PFIC, revised December 2025)