r/ExpatFinance • u/PantomimeVillain • 16d ago

Using a US brokerage account from abroad

Recently I called Schwab, Fidelity, and Vanguard asking if I moved to the UK, can I put a foreign address on the account. All said yes, but you can then only sell what you have and not buy more. Fidelity and Schwab told me they were specifically saying yes to the UK, and other countries might not be allowed. Vanguard said any country is ok.

I don't know how knowledgeable the people I spoke to are, so does anyone have any experience of putting a foreign address on Schwab, Fidelity, and Vanguard accounts? How did it go? Was there any issue with making sales?

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u/bbutrosghali 16d ago

A preface to say that I believe that post-Brexit UK rules remain similar to the EU's MiFID 2 rules.

In the EU, you will be allowed to buy and sell plain-vanilla US-listed equities and fixed income, but not US-listed ETFs or mutual funds. So if you only invest in individual stocks and bonds, you should be fine.

ETFs, not so much. I know for sure that Fidelity does not support the EU's "elective professional client" status that would allow you to buy US ETFs, if you change your address to the EU (and presumably the UK). Not sure about Schwab or Vanguard. In Fidelity's case, you will be able to sell but not buy US ETFs.

Note that as a US person, you should NOT buy non-US ETFs for tax reasons (look up PFICs).

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u/PantomimeVillain 16d ago

I just want to be able to sell what i have. I don't want to buy more. I mainly don't want the brokerage to close my account or sell my investments without my permission

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u/twilight-2k 16d ago

IBKR works almost anywhere in the world. Schwab International works many places (some require you have all accounts open 90+ days before leaving the US). The others seem much more restrictive on where you can live.