Looking for the top 10 list of regulated international brokers in USA? Our list covers it all. This list is prepared after testing several real money accounts and comparing their main criteria.
When you choose an international broker, you have many options. Thus, it is always difficult to find one that is safe and which will match your investment goals.
So, we did some in-depth research made some thorough comparisons, and verified the safety of brokers. This was essential so that we could identify all scam brokers and also those platforms that are of poor quality.
Here is our compilation of the top 10 brokers and discussed their types of trading. We have also included some reviews, feature comparisons and FAQ..
Best international brokers in USA
| Rank | Broker | Score | Best For |
| 1 | eToro | 4.9 | Best International Broker Overall. Low trading fees. Great option for beginners |
| 2 | Interactive Brokers | 4.9 | Best For Stocks, ETFs and Bonds. Great research tools. Very low trading fees. |
| 3 | Fidelity | 4.7 | Best for mobile trading. Very low trading fees. Great research tools. |
| 4 | Charles Schwab | 4.6 | Best trading platform. Great customer support. Great option for active trading. |
| 5 | TradeStation | 4.6 | Best for Futures. Good option for Mutual Funds. Very good option for active trading. |
| 6 | Zack’s Trade | 4.4 | Best Customer support. Great for stocks and ETFs. Very low trading fees. |
| 7 | tastytrade | 4.3 | Best for Options. Great research tools. Very good educational materials. |
| 8 | Oanda | 4.2 | Best For Forex. Very good research tools. Fast account opening. |
| 9 | Alpaca Trading | 4.1 | Best for algorithmic trading. Great charting tools. Very low trading fees. |
| 10 | Forex.com | 4.1 | Best research tools. Great option for Forex trading. Very competitive trading fees. |
Regulations and Safety Standards in USA
In the USA, regulations are quite strict. Their regulatory framework has the objective of ensuring transparency, protection and fairness of investors.
What are these regulatory bodies?
Financial Industry Regulatory Authority (FINRA): The primary responsibility of this body is to enforce all rules that govern the security industry. They also manage broker-dealers. Their objective is to safeguard investors.
Securities and Exchange Commission (SEC): Responsible for monitoring mutual funds, brokers and securities markets. The objective is to safeguard the investors’ money.
Federal Reserve System (Fed): This organization regulates banks. It ensures that the financial system is stable especially those that are relevant to investment and trading services.
Investor Protection Funds (SIPC): The Securities Investor Protection Corporation (SIPC) works to protect the investors from cash loss and securities in case a brokerage firm fails.
Commodity Futures Trading Commission (CFTC): This organization works to regulate futures and options markets. Their objective is to protect investors and ensure financial integrity.
Tier-1
Who are the international Regulators?
Traders in U.S who are considering international brokers have to check Tier-1 regulators.
These include the U.S. Securities and Exchange Commission (SEC), UK’s Financial Conduct Authority (FCA), and Australia’s Securities and Investments Commission (ASIC). So, why consider them?
The reason being, that they set high standards when we compare in terms of protection of investors, transparency and security factors. Thus, when traders are dealing with these bodies, they can take advantage of their existing security standards and stringent compliance.
Also, such a robust framework ensures that the traders have the needed tools and also protection for their trading journey. This is internationally and domestically.
Top Brokers and Their Safety and Regulation Standards – Comparison
Let’s check some of those areas that determine the trustworthiness of brokers. This is especially in case of those brokers who are amongst the top tier. Check this table for more details.
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| Top-tier Regulators | FCA (UK), ASIC (Australia), SEC (USA) | FCA (UK), ASIC (Australia), SEC (USA) | SEC and FINRA (USA) | SEC and FINRA (USA) | SEC and FINRA (USA) | SEC and FINRA (USA) | SEC and FINRA (USA), ASIC (Australia) | FCA (UK), CIRO (Canada), ASIC (Australia), FSA (Japan), NFA (USA) | SEC and FINRA (USA) | FCA (UK), CFTC and NFA (USA), CIRO (Canada), CySEC (Cyprus) |
| Trusted Broker | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Year of Foundation | 2007 | 1977 | 1946 | 1971 | 1982 | 1978 | 2017 | 1996 | 2015 | 2001 |
| Investor Protection | £85k to UK, €20k to EU, $500k (cash up to $250k) to US clients | $500k (cash up to $250k) | $500k (cash up to $250k) | $500k (cash up to $250k) | $500k (cash up to $250k) | $500k (cash up to $250k) | $500k (cash up to $250k) | £85k to UK, €20k to EU clients, 1M CAD to Canadian | $500k (cash up to $250k) | £85k to UK, €20k to EU, 1M to Canada $500k (cash up to $250k) to US clients |
| Involved in Scandal | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | In 2024 sued for Hack Exposing 77,000 Clients’ Finance Data | In 2022 agreed to pay $187 million to settle an SEC investigation into the firm’s robo-advisor, Schwab Intelligent Portfolios. | In 2022 paid a fine for failing to register its Crypto lending product | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines | Clean track record: no major regulatory incidents or fines |
How different is their fee structure?
Fees differ from one platform to another. Thus, traders should check the structure. For example, eToro charges 0 commissions on different UK/German stocks. Interactive Brokers have the tightest spread of EURUSD at 0.1.
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| US Stock | $0 | $0.005 per share with $1 min; $0 for lite plan | $0 | $0 | $0 for first 10000 shares per trade with flat $5 after that | $0.01 per share with $1 min | $0 | – | $0 | – |
| UK Stock | $0 | 0.05% with £3 min | £9 | – | – | 0.3% with £12 min | – | – | – | – |
| German Stock | $0 | 0.05% with €3 min | €19 | – | – | 0.3% with €12 min | – | – | – | – |
| EURUSD spread | 1.0 | 0.1 | – | 1.4 | – | – | – | 0.8 | – | 1.2 |
| US Stock Index Option | – | $0.65 per contract with $1 min | $0.65 per contract | $0.65 per contract | $1 per contract | $1 for first + $0.75 for each additional contract | $1 per contract | – | – | – |
| Mutual Funds | – | $15.00 | $49.95 | $49.95 | $14.95 | $27.50 | – | – | – | – |
| US treasury Bond | – | 0.002% of trade value with $5 min | $0 | $0 | $50 | – | – | – | – | – |
Comparison of Deposit, credit card and account opening.
It is necessary to compare factors like availability of debit or credit cards for the traders or speed at which an account is opened. For instance, Tastytrade is well-known for its account opening time – which is just 1 day. Fidelity has a $0 minimum deposit amount.
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| Minimum deposit | $50 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $100 |
| Time to open account | 1 day | 1-3 days | 3 days | 1 day | 1-2 days | more than 3 days | 1 day | 1 day | 1 day | 2 days |
| Credit/Debit Card | Yes | No | No | No | No | No | No | Yes | No | Yes |
| 24/5 support | No | Yes | No | No | No | No | No | No | No | Yes |
| Market research | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Check their Non Trading Fees
Those who are not aware, this includes withdrawal fees, account related fees and deposit fees. For example – eToro has $0 deposit fees and Interactive Brokers has $0 withdrawal fees.
Here is a brief comparison of the fees charges
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| Account fee | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Deposit fee | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Withdrawal fee | $5 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Inactivity fee | $10/mo after 1y | $0 | $0 | $0 | $10 per month for accounts below $5000 or for less than 10 transactions in 3mo | $15 per month for accounts below $25000 | $0 | $10/mo after 1y | $0 | $15/mo after 1y |
Comparison of Web Trading, Desktop and Mobile Platforms
It becomes necessary to briefly compare the platform where the trading takes place. Fidelity is known to have the best mobile app while Charles Schwab is considered to be the ideal trading platform.
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| Trading platform score | 4.8 | 4.9 | 4.5 | 5.0 | 4.9 | 4.0 | 4.1 | 4.4 | 4.2 | 3.9 |
| Tradingview | Yes | Yes | No | Yes | Yes | Yes | No | Yes | Yes | Yes |
| Algorithmic trading | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Demo account | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Platform is customizable | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Mobile app score | 4.9 | 4.9 | 5.0 | 4.7 | 5.0 | 4.5 | 4.6 | 4.9 | 4.5 | 4.5 |
Comparing Financial Assets, product selection and markets.
We have compared the available financial products. It is known that eToro has the most cryptocurrency products, while Interactive brokers has the most ETF’s and stocks.
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| Number of clients | 35M | 2.6M | 44.2M | 35.6M | 220k | N/A | 105k | 47k | N/A | 54k |
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| Stocks (markets) | 20 | 90 | 25 | 4 | 5 | 90 | 4 | – | 5 | – |
| ETFs | 680 | 13000 | 2500 | 2300 | 3000 | 13000 | 2200 | – | 4000 | – |
| Mutual Funds (providers) | – | 600 | 550 | 600 | 54 | 550 | – | – | – | – |
| Bonds | – | 41336 | 209000 | 60000 | 630 | 38321 | – | – | – | – |
| Options (exchanges) | 1 | 34 | 5 | 8 | 10 | 34 | 8 | – | 5 | – |
| Futures (markets) | – | 32 | – | 8 | 11 | – | 8 | – | – | – |
| Forex | 55 | 100 | – | 82 | – | – | – | 70 | – | 80 |
| Cryptos | 130 | 5 | 3 | – | – | 4 | 4 | – | 56 | – |
User base of top international brokers in USA compared
The number of clients per broker is compared in the table below. Fidelity has the highest user base.
| Broker | eToro | Interactive Brokers | Fidelity | Charles Schwab | TradeStation | Zack’s Trade | tastytrade | Oanda | Alpaca Trading | Forex.com |
| Number of clients | 35M | 2.6M | 44.2M | 35.6M | 220k | N/A | 105k | 47k | N/A | 54k |
Top international brokers in USA reviewed
eToro
| Broker | eToro |
| Recommended for | Beginners, Social Trading Forex, Stocks, ETFs and Cryptos |
| Minimum deposit | $50 |
| Time to open account | 1 day |
| Credit/Debit Card | Yes |
| US Stock | $0 |
| EURUSD spread | 1.0 |
| Inactivity fee | $10/mo after 1y |
| Trading platform score | 4.8 |
| Overall score | 4.9 |
| UK Stock | $0 |
| German Stock | $0 |
With eToro, traders get access to global markets, including ETFs and stocks from major exchanges. It provides a unique Copytrader feature, which allows traders to mimic the strategy of expert international traders. It also provides multi-currency accounts for international transactions.
With eToro, one can enjoy commission-free trading on stocks spanning across multiple global markets. Traders can get knowledge on international trading strategies using extensive educational resources in the platform.
Pros:
- eToro’s simply interface supports trading in multiple regions.
- With eToro, traders can take advantage of fractional shares trading to access expensive global stocks.
- EToro is regulated by tier-1 regulatory bodies across multiple jurisdictions.
Cons:
- Depositing non-USD currencies attract conversion fees
- It does not provide access to mutual funds or bonds.
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Interactive Brokers
| Broker | Interactive Brokers |
| Recommended for | Stocks, ETFs, Bonds, Options, Futures advanced and experienced traders |
| Minimum deposit | $0 |
| Time to open account | 1-3 days |
| Credit/Debit Card | No |
| US Stock | $0.005 per share with $1 min; $0 for lite plan |
| EURUSD spread | 0.1 |
| Inactivity fee | $0 |
| Trading platform score | 4.9 |
| Overall score | 4.9 |
| UK Stock | 0.05% with £3 min |
| German Stock | 0.05% with €3 min |
Interactive Brokers provides access to more than 150 markets across 33 nations, with multi-currency accounts available for transacting. Traders are attracted to the platform because of its low commission and margin rates.
Traders can also benefit from using the advanced platforms provided by Interactive Brokers, such as the Trader Workstation. It is globally regulated by the likes of SEC. FCA and ASIC.
Pros:
- Traders get a wide selection of global assets including bonds and ETFs.
- Traders can also educate themselves using the comprehensive research and analytical tools available.
- The educational resources present on the platform is customized more towards international strategies.
Cons:
- The platforms can be a bit too complex for new users.
Fidelity
| Broker | Fidelity |
| Recommended for | Stocks, ETFs, Mutuals Funds, Options, Bonds, active traders |
| Minimum deposit | $0 |
| Time to open account | 3 days |
| Credit/Debit Card | No |
| US Stock | $0 |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Trading platform score | 4.5 |
| Overall score | 4.7 |
| UK Stock | £9 |
| German Stock | €19 |
With Fidelity, traders can access markets in 25 countries and 16 currency exchanges. The platform makes conducting comprehensive research easy, including reports and international news. It makes things easier through its user-friendly website and mobile platforms.
Traders can take advantage of extensive educational resources for global strategies. They are regulated by tier-1 regulatory bodies like SEC and FINRA.
Pros:
- With Fidelity, traders can trade internationally taking advantage of transparent pricing with competitive fees.
- Global accounts can be integrated easily.
- It has a strong reputation for protecting investor funds.
Cons:
- Customer support responses are known to be inconsistent.
Charles Schwab
| Broker | Charles Schwab |
| Recommended for | Stocks, ETFs, Options, Futures, Mutuals Funds, Bonds, active traders |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Credit/Debit Card | No |
| US Stock | $0 |
| EURUSD spread | 1.4 |
| Inactivity fee | $0 |
| Trading platform score | 5.0 |
| Overall score | 4.6 |
| US Stock Index Option | $0.65 per contract |
| Mutual Funds | $49.95 |
Charles Schwab is a reputed broker that provides access to more than 30 global markets and multi-currency options. Traders can enjoy direct trading in 12 foreign markets using the Schwab Global Account.
Charles Schwab also has advanced platforms like StreetSmart Edge which make global trading easier. Its customer service is available 24/5 for multiple nations. Extensive educational resources make things easier for newbies.
Pros:
- Charles Schwab does not charge any commissions on U.S. stocks and ETFs.
- Global investments are easier using comprehensive research tools.
- It has a secure trading environment, being regulated by the likes of SEC, FINRA and others.
Cons:
- Charles Schwab has limited currency support, which requires traders to pay conversion fees.
- It does not provide access to crypto trading.
TradeStation
| Broker | TradeStation |
| Recommended for | Stocks, ETF, Options, Futures, Active traders |
| Minimum deposit | $0 |
| Time to open account | 1-2 days |
| Credit/Debit Card | No |
| US Stock | $0 for first 10000 shares per trade with flat $5 after that |
| EURUSD spread | – |
| Inactivity fee | $10 per month for accounts below $5000 or for less than 10 transactions in 3mo |
| Trading platform score | 4.9 |
| Overall score | 4.6 |
| US Stock Index Option | $1 per contract |
| Mutual Funds | $14.95 |
TradeStation provides access to more than 150 markets across 33 nations. Traders can get the full trading experience thanks to the advanced platforms available with advanced charting and analysis tools.
TradeStation does not charge any commissions for online stock and ETF trades. Traders can test their strategies for free by using simulated trading. Traders can also automate their trading using customizable strategies using Easy Language.
Pros:
- Traders can backtest strategies using comprehensive historical data.
- Webinars and tutorials make its extensive educational resources a gold mine for learners.
- IT charges competitive fees, such as $5 per international stock trade.
- It is ideal for active traders as there is no inactivity fees.
Cons:
- It has limited free data services compared to competitors.
- New traders can find their complex fee structure confusing.
Zack’s Trade
| Broker | Zack’s Trade |
| Recommended for | Stocks, ETFs, Bonds, Options, Futures |
| Minimum deposit | $0 |
| Time to open account | more than 3 days |
| Credit/Debit Card | No |
| US Stock | $0.01 per share with $1 min |
| EURUSD spread | – |
| Inactivity fee | $15 per month for accounts below $25000 |
| Trading platform score | 4.0 |
| Overall score | 4.4 |
| UK Stock | 0.3% with £12 min |
| German Stock | $0.01 per share with $1 min |
Zack’s Trade has a Pro platform which has advanced tools. It provides free access to over 20 research reports, including Zacks Investment Research. With Zack’s Trade, traders can access up to 91 exchanges across 19 nations.
Zack’s Trade offers some of the lowest commission rates, starting at $0.01 per share. It provides free broker-assisted trades without charging anything.
Pros:
- Risk-Free strategy testing is possible through paper trading accounts.
- Traders can trade high-priced stocks thanks to fractional share trading.
- It provides customer support along with broker assistance.
- It provides 24/7 trading options.
Cons:
- Zack’s Trade does not provide futures, commodities or forex trading.
tastytrade
| Broker | tastytrade |
| Recommended for | Options, Futures |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Credit/Debit Card | No |
| US Stock | $0 |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Trading platform score | 4.1 |
| Overall score | 4.3 |
| US Stock Index Option | $1 per contract |
Tastytrade is a reputed broker which provides low-cost options trading. One requires only $1 to open and $0 to close. Traders can also take advantage of advanced platforms using tools like curve analysis.
Tastytrade provides ample educational resources via its tastylive feature. It does not have any minimum account requirement.
Pros:
- Traders can take advantage of commission-free stock and ETF trades.
- It also provides innovative tools, especially for options strategy visualization.
- It falls under the regulation of U.S. standards for security.
Cons:
- Tastytrade is limited only to stocks, ETFs and options.
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Oanda
| Broker | Oanda |
| Recommended for | Forex |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Credit/Debit Card | Yes |
| US Stock | – |
| EURUSD spread | 0.8 |
| Inactivity fee | $10/mo after 1y |
| Trading platform score | 4.4 |
| Overall score | 4.2 |
| Deposit fee | $0 |
| Withdrawal fee | $0 |
With Oanda, traders can access forex and CFDs on different instruments like bonds, commodities and indices. They can also use advanced platforms like TradingView and MetaTrader for a better trading experience. Regulated by the FCA, ASIC and CFTC, Oanda makes sure that it provides a secure trading environment for all its traders.
Oanda allows precise position sizing through micro-lot trading. There is no minimum deposit requirement, allowing traders of all sizes for participating.
Pros:
- Oanda provides transparent pricing with competitive spreads.
- Traders can take advantage of comprehensive research and market analysis tools for a better trading experience.
- Novices can get a better understanding of different trading concepts using the extensive educational resources available.
Cons:
- Oanda is limited only to CFDs and forex as it does not provide stocks or ETF trading.
Alpaca Trading
| Broker | Alpaca Trading |
| Recommended for | Stocks, ETFs, Options, Algorithmic trading |
| Minimum deposit | $0 |
| Time to open account | 1 day |
| Credit/Debit Card | No |
| US Stock | $0 |
| EURUSD spread | – |
| Inactivity fee | $0 |
| Trading platform score | 4.2 |
| Overall score | 4.1 |
| Deposit fee | $0 |
| Withdrawal fee | $0 |
Alpaca trading is a broker that also doubles as a API-driven platform for algorithmic trading. Traders can enjoy commission-free trading on US. Stocks and ETFs. They can also take advantage of paper trading for testing strategies.
Alpaca trading ensures a secure trading environment, as it is regulated by FINRA and SEC with SIPC protection. International clients can access U.S. stocks using the broker, which is a major advantage.
Pros:
- Alpaca trading is very user-friendly for novices.
- It does not have any minimum deposit requirements.
- Developers can easily create algorithmic strategies on the platform.
Cons:
- Alpaca trading takes the help of third-party providers for providing historical data.
Forex.com
| Broker | Forex.com |
| Recommended for | Forex |
| Minimum deposit | $100 |
| Time to open account | 2 days |
| Credit/Debit Card | Yes |
| US Stock | – |
| EURUSD spread | 1.2 |
| Inactivity fee | $15/mo after 1y |
| Trading platform score | 3.9 |
| Overall score | 4.1 |
| Deposit fee | $0 |
| Withdrawal fee | $0 |
Forex.com is home to more than 5500 instruments, which includes forex and commodities. Traders can use multiple platforms on this broker, such as MT4, MT5 and mobile apps. Forex.com is regulated by the CFTC, ASIC and FCA for added security.
The broker also lets traders use advanced tools like TradingView and performance analytics. There is also a “trading Academy” which provides comprehensive educational resources.
Pros:
- Forex.com has a high trust rating and is part of the StoneX Group Inc.
- Both beginners and professional traders will find flexible account options that suit them.
- Trade execution times are one of the fastest in the industry.
Cons:
The platform has variable spreads which may change costs.
Finding best international broker in the USA
Safety and Regulations: Brokers which fall under the regulation of trusted authorities such as the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), and the Commodity Futures Trading Commission (CFTC) are ranked higher. This ensures that the brokers meet the security and legal requirements of providing trading activities in the United States.
Fees: Brokers, which offer competitive fees for both domestic and international trading are prioritized. This includes tight spreads, low or no commissions and transparent fee structures that appeal to clients in the United States, especially those who trade global stocks, forex and ETFs.
Non-trading fees: Brokers are assessed based on hidden costs. This includes account maintenance, withdrawal fees, and inactivity charges. Those brokers who offer minimal or no trading fees are prioritized. Those who trade in multiple currencies should take note of currency conversion fees.
Deposit/withdrawal, account opening: Brokers which have quick account setup and reliable deposit and withdrawal methods are rated higher. U.S. clients prefer those who provide local payment options like direct bank transfers, PayPal, and credit cards.
Mobile app/trading platforms: We focus on user-friendly platforms like features such as seamless order execution, advanced charting tools and real-time price alerts. Platforms that support trading across multiple asset classes are especially beneficial for clients in the United States.
Taxation for stock trading in the USA
Traders should understand the implications of taxation on trading.
Short-term capital gains: The sale of assets owned for a period shorter than a year is taxed as income, the usual tax rate is applied on such gains.
Long-term capital gains: Profits on investments held for more than a year attracts a reduced tax rate. This can depend on you taxable income, which can be 0%, %15 or 20%.
Dividend income: Depending on your situation, dividends from U.S companies could be taxed anywhere from 0% to 20%. Foreign dividends could be taxed in the source country. However, there is the possibility of claiming the foreign tax credit to avoid double taxation.
Currency conversion: If you worked in foreign currencies, then please report the profits in US dollars, even though they will fall under the US tax rule. The tax amount payable will depend on currency fluctuations.
Interest income: Interest earned from bonds is treated as ordinary income subject to the same tax rate as savings accounts. There are no exceptions to this.
It is crucial for beginner traders to seek the services of a tax advisor to understand these rules. They are experts who can give you advice based on your individual circumstances and trading activities.
Investing in international stocks from the USA
There are a few steps involved – let’s check.
Select a Broker: Your first step is to choose a broker. The broker should be regulated by authorities like FINRA and SEC. Also, you should ensure that the broker allows access to different international markets. The broker should also adhere to US regulations with good track record.
Account Creation: There are many brokers that offer digital onboarding process. It is a simple process. You will need a SSN or social security number, passport or proof of address.
Funding: This can be done through different methods which include e-wallets, credit cards and bank transfers. However, one should keep in mind about fees, especially conversion fees.
Begin Trading: This is the step when you can start trading. Check the different educational tools and resources that will help you.
Monitoring and Managing Risks: Keep reviewing your investments time and again. You can apply various risk management strategies related to international trading.
Trading That is Illegal in USA
Before you start, you need to know about trading that is legal in USA
Stock Trading: You can buy and sell shares of different companies that are listed on major stock exchanges. These include NASDAQ and New York Stock Exchange.
Derivatives Trading: You can try trading futures and options. This can be done in Chicago Mercantile Exchange and Chicago Board Options Exchange among others.
Mutual Funds and Bonds: It’s a good option to invest in international mutual funds. One can trade corporate or government bonds.
International Trading: It is possible to engage in international markets through different platforms. However, you must see that these platforms offer the relevant international stocks.
Forex Trading: In U.S residents can trade variety of currency pairs through regulated platforms and make money.
Commodity trading: Traders can trade in different commodities such as gold, silver, crude oil, and agricultural products on exchanges.
However, there are some activities like online gambling and betting that are illegal in US.
Conclusion
So, after a thorough analysis we can say that eToro offers easy access to global markets. Investors can trade in more than 3000 assets. It offers commission free stock trades. Its CopyTrader tool is quite helpful which makes the platform quite engaging. It is also regulated by the top authorities. It has an innovative approach as well. It is the best choice for U.S clients who wish to navigate international markets.
| Rank | Broker | Score | Best For |
| 1 | eToro | 4.9 | Best International Broker Overall. Low trading fees. Great option for beginners. |
| 2 | Interactive Brokers | 4.9 | Best For Stocks, ETFs and Bonds. Great research tools. Very low trading fees. |
| 3 | Fidelity | 4.7 | Best for mobile trading. Very low trading fees. Great research tools. |
| 4 | Charles Schwab | 4.6 | Best trading platform. Great customer support. Great option for active trading. |
| 5 | TradeStation | 4.6 | Best for Futures. Good option for Mutual Funds. Very good option for active trading. |
| 6 | Zack’s Trade | 4.4 | Best Customer support. Great for stocks and ETFs. Very low trading fees. |
| 7 | tastytrade | 4.3 | Best for Options. Great research tools. Very good educational materials. |
| 8 | Oanda | 4.2 | Best For Forex. Very good research tools. Fast account opening. |
| 9 | Alpaca Trading | 4.1 | Best for algorithmic trading. Great charting tools. Very low trading fees. |
| 10 | Forex.com | 4.1 | Best research tools. Great option for Forex trading. Very competitive trading fees. |
FAQ
What is an online broker?
An online broker can be simply described as a platform which enables US traders to buy and sell financial instruments worldwide, such as ETFs, bonds, stocks and derivatives. These brokers offer tools for trading on both US exchanges like the NASDAQ and NYSE as well as global markets, thus offering features like multi-currency accounts and access to foreign stock exchanges.
Are US brokers safe for international trading?
Brokers which are regulated by organizations like CFTC, SEC and FINRA are safe for international trading. When you are searching for US brokers for global trading, make sure that they adhere to the international financial regulations. You should look for additional protective measures like international insurance coverage and separate accounts in compliance with global standards.
What should you look for when choosing a broker for global trading in the United States?
When you are searching for a broker for global trading in the United States, it will be better if you consider the following factors:
Fees: Fees is an important factor which should be considered when choosing a broker for global trading in the US. You should examine the fees properly, especially those related to international transactions, currency conversions and access to overseas market.
Regulation: Regulation is also an important factor. It is important that you ensure whether your chosen broker is registered with US authorities like SEC or not. They should also comply with the international regulatory standards.
Customer support: You should confirm that your chosen broker will support you during trading hours of global markets
Asset variety: You must ensure that your chosen broker offers variety of international stocks, currencies, bonds and commodities.
Is it legal for US clients to trade in global markets?
Yes, it is legal for US clients to trade in global markets provided they use brokers which comply with both US and international regulatory standards. If you are interested to trade in international market as an US client, make sure that your chosen broker is compliant with the international trading laws and practices.
What fees can you expect when you are doing international trading from the USA?
When you are doing international trading from the USA, you can expect standard brokerage fees, international access fees and foreign exchange fees. You can also expect higher prices for transactions on overseas exchange.
How will you manage risks while trading globally from the United States?
When you are trading globally from the USA, you can manage risks by using risk management tools which are effective across different markets, such as currency hedging strategies, global stop-loss orders and diversification across international assets.
What documents are required for trading internationally from the United States?
When you are trading internationally from the USA, you will require documents like valid ID proof, bank details, Social Security Number or ITIN and proof of residence. You may also have to provide some additional documents depending on the foreign markets you want to access like forms for declaring overseas investments.
What are ETFs? Are they a good investment for global traders?
ETFs or Exchange Trade Funds helps to track global indexes, commodities or global sectors, thus providing diversified exposure with lower risks and costs than directly buying foreign stocks.
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