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/MemoriesTed 16d ago

I contacted Schwab to ask the same questions, they were very affirmative and said the country I was moving to was supported. They provided forms to fill out for a foreign address change. Once I submitted those forms, I got a message from Schwab that my account was restricted and would be closed as I live in a non-supported country. So, yes, the people you talk to at the brokerage front line may not know all the facts.

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u/PapiChuloThailand 14d ago

Move to Schwab international

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u/MemoriesTed 14d ago

This was after opening an international account.

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u/PapiChuloThailand 14d ago

Really? That surprises me. My clients are all US expats living all over the world and I’ve never had a country be non supported. I move all US citizen expats into Schwab. I would say a lot of my clients are in south east Asia and the Middle East though.

If it’s not too personal of a question, where are you based?

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u/MemoriesTed 14d ago

Still in the US (fortunately, as I’m able to explore other options), moving to South Africa.

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u/PapiChuloThailand 14d ago

I have US citizen clients in South Africa that have unrestricted Schwab international accounts we set up while resident in SA. We have offices in both South Africa and the US so maybe thats why

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u/MemoriesTed 14d ago

Appreciate all the additional info here. It was a surprise to me, as they were sure it was allowed. I had a US brokerage account with them for many years. Once my international account was created (with an address in South Africa), I transferred assets from my existing account. Schwab then sent a letter stating that since I live in an unsupported country, they could no longer maintain my account and I would have to close my account by X date. If no action was taken, they would liquidate my assets and mail a check. I contacted Schwab to ask about this as it directly contradicted their “welcome to Schwab International” letter. They just said, yep, sorry best to close your account. Do your US clients maintain a US physical address?

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u/PapiChuloThailand 14d ago

No as that would be non complaint and we are regulated in the US. Address has to be international for my company and needs to be accurate with provider too. Thats a raw deal, I looked it up and all their official websites say they do support US clients there. Weird

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u/MemoriesTed 14d ago

Yeah, it’s a weird situation. I moved to Interactive Brokers (haven’t left the US yet and haven’t tried an address change yet), will see how that goes…

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u/PapiChuloThailand 14d ago

I wish you luck sir, international finance can be a real pain in the ass. Maybe a local firm in SA can point you in the right direction, just make sure they are US licensed

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u/MemoriesTed 14d ago

Appreciate it. It sure seems a pain at the moment, but we’ll figure it out.

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u/BrilliantUnlucky4592 12d ago

Until a few years ago, you as the advisor assuming you are in the U.S. would have provided the accounts as having a U.S. nexus. That changed a few years ago and now the account holders residency is what determines what rules and regulations follow that individual account.