Brokerage Accounts When You Move Abroad

When you move abroad, your brokerage account may remain open, but access, trading, investment options and tax reporting can change.

A review should usually consider:

• whether the account is with a US broker or foreign broker
• whether the account holder is a US citizen
• whether the account holder is a green card holder
• whether the account holder remains a US tax resident
• whether the broker accepts foreign addresses
• whether the broker restricts trading for non-US residents
• whether mutual fund purchases are restricted
• whether ETFs remain available
• whether existing holdings can be retained
• whether new accounts can be opened
• whether the account can receive deposits
• whether joint account holders live in different countries
• whether foreign accounts need FBAR reporting
• whether Form 8938 reporting may apply
• whether foreign funds create PFIC exposure
• whether tax documents will still be issued
• whether the portfolio currency matches future spending
• whether the client may return to the United States or move again

The main planning risk is assuming nothing changes.

Some brokerage accounts continue without issue.

Some become restricted.

Some allow holding but not new purchases.

Some foreign accounts create US tax and reporting issues for US-connected investors.

The right answer depends on your provider, tax status, residence, investments and future plans.

Many people focus only on tax when they move abroad.

But brokerage accounts often create a practical problem first.

For example:

• your broker may ask for an updated address
• your foreign address may trigger account restrictions
• trading may become limited
• mutual fund purchases may be blocked
• new account opening may not be available
• existing adviser arrangements may no longer work
• documents may no longer be accepted
• platform access may become awkward
• currency transfers may become more expensive
• foreign accounts may be opened without reporting awareness

This can leave investors stuck.

They may have an account they can view but not properly manage.

They may be able to sell but not buy.

They may hold legacy funds but be unable to rebalance properly.

They may open local accounts that are tax-inefficient for US purposes.

They may build investment portfolios across several countries with no coherent structure.

The best approach is to review brokerage accounts before the move where possible.

That gives more time to understand provider rules, investment options, tax reporting, currency and whether alternative structures are needed.

This page is for general information only and does not constitute personalised financial, tax, legal, investment, pension transfer, retirement, estate planning, US tax, PFIC, FBAR, FATCA, brokerage, custodian or currency advice.

Brokerage access, provider restrictions, foreign addresses, trading permissions, foreign accounts, PFIC treatment, Form 8621, Form 8938, FBAR, FATCA, tax reporting, investments, currency, estate planning and future residence depend on personal circumstances and may change.

US tax advice should be taken from a suitably qualified US tax adviser or CPA. Local tax and legal advice should also be taken where relevant.

Financial planning should be coordinated with legal, tax, pension, investment and estate planning advice where appropriate.

Investing involves risk. Investment values can fall as well as rise, and you may get back less than you invest.

Currency movements can affect the value of accounts, investments, transfers, withdrawals and income.