Keeping Your Investments When You Move Abroad

Here's something most financial advisors don't mention when you tell them you're retiring abroad: your brokerage account might not come with you.

Kelly Milligan, founder of Expat Retire Guide

By Kelly Milligan

Updated June 6, 2026 · Published April 26, 2026

Since 2024, Fidelity, Vanguard, Schwab, and others have been sending closure notices to Americans with foreign addresses — your current brokerage may not follow you.
Interactive Brokers (IBKR) serves 200+ countries and is the recommended path for most permanent or long-term expat retirees.
Non-US-domiciled funds and ETFs trigger punitive PFIC tax rules on your US return — keep investments in US-registered funds at a US brokerage.
EU residents face an added twist: MiFID II blocks access to most US-registered ETFs, creating a tax catch-22 worth solving before you move.

Since late 2024, a wave of US financial institutions — Fidelity, Vanguard, Schwab, Merrill Lynch, USAA, Morgan Stanley, and others — have been quietly closing or freezing the accounts of American clients living outside the United States. For retirees who've built portfolios over decades, discovering that your brokerage is suddenly off-limits is not a minor inconvenience. It's a financial emergency.

A note before you read —

This page covers investment options and brokerage choices for US expat retirees — not personalized investment advice. Your specific situation (IRA type, country of residence, portfolio size) will affect what applies. For decisions about moving significant assets, consult a financial advisor who specializes in US expats abroad.

The Brokerage Account Closure Problem Is Real — and Getting Worse

Starting in late 2024 and accelerating through 2025 and into 2026, US financial firms began sending account closure notices to Americans living abroad. The driver is a convergence of regulatory pressures — compliance costs, foreign tax reporting obligations, and country-specific securities laws — that make serving international clients more trouble than most brokerages want.

Affected firms include household names: Morgan Stanley, Fidelity, Merrill Lynch, Ameriprise, TIAA, Edward Jones, USAA, UBS, and dozens of smaller broker-dealers.

If you're planning to retire to Portugal, Mexico, Spain, Panama, or anywhere else, the question isn't just "which country has the best healthcare?" It's also: "Who will still hold my investments after I move?"

Switching to IBKR isn't the only path. If you'd rather keep the Schwab or Fidelity account you already have, that's often doable — it just turns on setting up a US address your broker will accept before you leave. For the full playbook on keeping your US brokerage account open when you live abroad — including the contact-individual address strategy and which brokers handle expat clients best — see our keeping US accounts guide.

Before you book a one-way flight

Check whether your current brokerage serves residents of your target country. Don't assume — call and ask directly, then get it in writing. Ask specifically: "Will my account remain fully functional if I become a legal resident of [country]?"

Your US Expat Investment Options: The Full Landscape

As a US expat retiree, your investment options fall into roughly five categories — each with a different risk profile and set of trade-offs. The right path depends on your destination country, how much you want to stay with your current broker, and whether you have a US address.

1. Keep your existing US brokerage open

Works for some brokers and some countries. Fidelity and Schwab allow many expats to keep accounts with a valid US address on file — a family member's address or a virtual mailbox service. The full playbook for this approach is in our keeping US accounts guide. Not every broker cooperates, and policies keep tightening.

2. Move to an expat-friendly global broker (recommended)

Interactive Brokers was built for global access — it serves clients in 200+ countries and is rated the most expat-friendly major US brokerage by multiple independent sources. This is the recommended path for most retirees making a permanent or long-term move abroad. More on IBKR below.

3. A non-resident-friendly alternative: ZacksTrade

If you don't have a US address, ZacksTrade is a US-regulated broker that opens accounts for residents of 200+ countries without requiring a Social Security Number — a passport and W-8BEN form suffice. There's a $250 minimum deposit, and commissions start at $0.01/share ($1 minimum per trade). A practical fallback when IBKR isn't the right fit or you need a faster account opening without a US address.

4. Open a local-country brokerage

Possible in many countries, but carries a serious US tax risk: non-US-domiciled funds and ETFs are classified as PFICs under US tax law, which can push effective tax rates above 50% on gains. If you're considering this route, read the PFIC section below before you do anything.

5. Stay with a US robo-advisor or RIA

Most US robo-advisors (Betterment, Wealthfront) and many registered investment advisors can't legally manage your account once you're a foreign resident — they're only licensed to advise US-based clients. If you currently use a robo-advisor or RIA, ask directly what happens to your account when you move before you leave.

Of those options, one stands out for retirees who'll be legal residents abroad: Interactive Brokers. Here's why.

Why Interactive Brokers Is Different

Interactive Brokers has built its business model around global access. Founded in 1978, IBKR operates in over 200 countries, supports 150+ markets, and handles accounts in 27 currencies. That footprint isn't accidental — it's what the platform was designed for.

Where most US brokerages treat international clients as a compliance headache, IBKR has made global servicing a core part of its value proposition. Key facts if you're considering a move abroad:

IBKR typically lets you keep your US account after relocating, as long as you maintain a US reference address — a family member or a virtual mailbox

If you become a legal resident of another country, IBKR works with you to transfer your account to the appropriate entity — rather than simply closing it

IBKR serves clients from 56+ countries in their referral program alone, indicating a genuinely global operation

Annual verification is required — IBKR confirms your residency details each year to stay compliant while still serving you

The tradeoff: IBKR is one of the more rigorous brokerages when it comes to verifying residency. The flip side of that diligence is that they can serve more countries than almost any competitor. According to Expat Finance US, this compliance rigor is precisely why they can offer services where others can't.

Not sure your current brokerage will make the cut? Call them before you move and ask directly: "Will my account remain fully functional if I become a legal resident of [country]?" Get the answer in writing.

What IBKR Actually Offers

Fees that are hard to beat

Stock & ETF trades $0 commissions on US stocks and ETFs (IBKR Lite accounts)

Monthly fees None for accounts with activity

Currency conversion Near-interbank rates — a $2 flat fee vs. the 1–3% spread most banks charge

Entity transfers No fee when moving assets between IBKR entities (e.g., US to Europe)

For expats managing multiple currencies, the currency conversion advantage alone can be meaningful over time.

Access to global markets

IBKR gives you access to stocks, ETFs, bonds, options, and more across exchanges in the US, Europe, Asia, and beyond. If you want to hold European ETFs — or simply trade in the currency of the country where you're living — the infrastructure is there.

The platform learning curve is real

IBKR's flagship platform, Trader Workstation (TWS), is powerful but not particularly beginner-friendly. Reviews from expat finance communities describe it as "dated but functional" once you learn the layout. For retirees primarily building and holding an ETF portfolio — which is how most long-term investors use the platform — you don't need most of the features.

IBKR also offers a simpler web-based interface (Client Portal) and a mobile app, which most retirees find more approachable for day-to-day use. You can open a free paper trading account to explore the platform before committing real money.

Important Caveats and Country-Specific Rules

IBKR's flexibility has limits. Here's what to watch for before you move:

IRA restrictions for certain countries

If you hold an IRA with IBKR and move to certain countries, you may lose the ability to make new contributions or open new retirement accounts. Countries where IBKR restricts IRA access include:

Australia, Canada, Hong Kong, India, Japan, Singapore
European Economic Area (EEA) countries

This doesn't mean your existing IRA gets closed — but it does mean you may not be able to contribute to it from abroad. Consult a tax advisor who specializes in US expat finances before making this decision.

EU residents and US ETFs (MiFID II)

If you become a legal resident of an EU country, EU financial regulations (specifically MiFID II) restrict your access to many US-registered ETFs. IBKR complies with these rules, which means EU-based account holders lose access to products like Vanguard's VTI or iShares' IVV.

The MiFID II workaround

EU-listed equivalents of the same funds are still accessible and often have similar expense ratios. VWCE on Euronext Amsterdam, for example, is a widely used EU-domiciled equivalent of VTI. The important rule: check that any fund's ISIN starts with "US" — if it starts with "IE," "LU," "GB," or any other non-US country code, it may trigger PFIC tax treatment on your US return. This is one area where a specialist isn't optional — the PFIC rules carry steep tax consequences and individual situations vary significantly.

Customer service

IBKR's customer support is functional, but phone support receives mixed reviews from expats. Wire transfer issues in particular can be frustrating to resolve. Most experienced IBKR users recommend using chat support and keeping detailed records of every communication.

Before you transfer significant assets, send them a low-stakes support question first. Response time and quality will tell you a lot before you actually need help with something urgent.

Which Accounts Travel With You

"Moving abroad" doesn't automatically mean losing your US accounts — but what happens to each account type depends on who holds it and where you're moving. Here's the short version:

Account portability when you become a foreign resident

Taxable brokerage Custodian-dependent. Some close foreign-resident accounts; many allow you to keep them with a valid US address on file. The keeping US accounts guide covers the full playbook.

Traditional IRA Usually stays open, but some custodians — including IBKR — restrict new contributions for residents of certain countries (EEA, Canada, Australia, and others). RMDs still apply by US law regardless of where you live.

Roth IRA Usually stays open, but your country of residence may not recognize its US-tax-free status — withdrawals may be taxable locally. Consult an expat tax advisor before drawing from a Roth abroad.

401(k) Stays with your former employer's plan administrator and is generally unaffected by your residence change. Required minimum distributions still apply at the same US age thresholds.

For the full tax treatment of retirement account withdrawals abroad — including which tax treaties recognize Roth distributions as tax-free — see our US taxes guide and the Roth IRA abroad page.

The PFIC Trap: Why Where You Invest Matters

Once you're a legal resident abroad, you might be tempted — or in the EU, effectively pushed — toward locally-available investment funds. Be careful. Non-US-domiciled funds and ETFs are classified as Passive Foreign Investment Companies (PFICs) under US tax law, and the tax treatment is genuinely punitive.

Under PFIC rules, long-term capital gains on a foreign fund get taxed at ordinary income rates instead of the lower capital gains rate. The IRS then adds an interest charge on top, calculated as if you'd received the income in the year the fund earned it. Combined, effective tax rates above 50% on gains are common. You also have to report each PFIC separately on Form 8621 — there's no aggregating across funds.

The MiFID II problem in Europe makes this especially tricky: as an EU legal resident, EU regulations block you from buying most US-registered ETFs. That leaves EU-listed equivalents (like VWCE on Euronext), which are PFIC-risk on your US return. A quick way to check: any fund whose ISIN starts with "US" is US-domiciled and PFIC-safe. "IE," "LU," or any other non-US prefix signals foreign domicile and potential PFIC exposure.

The simplest way to avoid the PFIC trap: keep your investments at a US brokerage and buy US-registered funds. That's the whole point of maintaining access to IBKR or another expat-friendly US broker — it keeps your investment universe PFIC-clean.

For the full mechanics — Form 8621, the QEF election, and what it actually costs to hold a PFIC — see the PFIC and foreign investments deep-dive on our taxes cluster.

How the Major Brokerages Stack Up

For US expat retirees, the honest comparison across the brokerages that matter most:

US brokerage options for non-resident clients

Vanguard Least expat-friendly. Sending closure notices to foreign-address clients since 2024. Not recommended for long-term residents abroad.

Fidelity Better than Vanguard but tightening since 2024. Country-by-country outcomes vary — check your specific destination before you move.

Schwab Similar to Fidelity. Has historically allowed more expat accounts; policies continue to shift. Confirm before you leave.

Merrill Edge Requires a permanent US address. Can close your account if your US legal residency lapses. Not designed for residents abroad.

Morgan Stanley / Merrill Lynch / USAA Sending closure or restriction notices to clients with foreign addresses since late 2024.

ZacksTrade Opens accounts for residents of 200+ countries. No SSN required — passport + W-8BEN. $250 minimum deposit; $0.01/share commissions ($1 min). A practical alternative when you lack a US address.

Interactive Brokers 200+ countries, 150+ markets, 27 currencies. Rated most expat-friendly major US broker by multiple independent sources. Annual residency verification required; no surprise closures for most destinations.

If you're undecided, open a free paper trading account with IBKR first — no commitment, no real money. You'll get a feel for the platform before you decide to transfer anything.

Opening or Transferring an Account

If you're opening a new IBKR account before you move, do it while you still have a US address — the application process is simpler and you'll be set up under the US entity.

If you're already abroad, you can still apply, but you'll be applying through the appropriate IBKR entity for your country of residence (IBKR LLC for US accounts, IBKR Europe for EU residents, and so on).

Account transfers from other US brokerages to IBKR are done via ACATS (the standard brokerage transfer system), which typically takes 3–7 business days. There's no fee from IBKR's side, though your current brokerage may charge a transfer-out fee.

Open an IBKR Account →

Your next step

Three things to do, in this order.

Call your current broker

Ask directly: 'Will my account remain fully functional if I become a legal resident of [country]?' Get the answer in writing before you move.
Open a free IBKR paper trading account

No real money required. Test the platform before deciding to transfer anything — it's the fastest way to decide if IBKR is the right fit for you.
Open IBKR account → (opens in new tab)
Read the taxes guide before you transfer

PFIC rules, FBAR, and double-taxation treaties all interact with how and where you hold investments. The taxes guide covers what you need to know first.
US taxes guide →

Frequently Asked Questions

How do US expats invest?

Most US expat retirees invest through a US-based brokerage — either one they kept from before the move (using a US reference address) or Interactive Brokers, which actively serves non-residents in 200+ countries. The key is keeping investments in US-registered funds at a US brokerage to avoid the PFIC tax trap that comes with local foreign investment accounts. A smaller number use non-resident-friendly alternatives like ZacksTrade when they don't have a US address.

What are the best investment options for American expats?

For most retirees: (1) keep your existing US brokerage using a US address if your broker allows it, (2) move to Interactive Brokers — the most expat-friendly major US broker — or (3) use ZacksTrade if you lack a US address and need a non-resident-friendly alternative. Avoid opening accounts at local brokerages abroad — non-US-domiciled funds trigger punitive PFIC taxation on your US return. See our options overview above for the full breakdown.

Can I keep investing in US index funds after I move abroad?

Yes — as long as you keep your account at a US brokerage. The complication is in the EU: as an EU legal resident, MiFID II regulations restrict you from buying most US-registered ETFs (VTI, IVV, and similar). EU-listed equivalents exist, but they're non-US-domiciled funds that can trigger PFIC rules on your US tax return. If you're moving to an EU country, consult an expat tax advisor about your investment setup before you go.

Do I need a US address to keep my brokerage account?

Many US brokerages require a permanent US address to keep serving you as a non-resident — Merrill Edge requires one, and Vanguard, Fidelity, and Schwab lean on it for compliance. A virtual mailbox or a family member's address can work, but the broker has to accept it. Interactive Brokers and ZacksTrade are designed for non-resident clients and don't require a US address to open or maintain an account.

Will my current brokerage account close if I move abroad?

It depends on the brokerage and your destination country. Since late 2024, Fidelity, Vanguard, Schwab, Merrill Lynch, USAA, Morgan Stanley, and others have been sending closure notices to clients with foreign addresses. The only reliable way to know is to call your brokerage directly and ask: 'Will my account remain fully functional if I become a legal resident of [country]?' Get the answer in writing.

Can I keep my IBKR account if I move abroad?

Generally yes — as long as you maintain a US reference address (a family member's address or a mail forwarding service), IBKR typically allows you to keep your US account. If you officially become a legal resident of another country, they'll work with you to transfer your account to the appropriate IBKR entity for that region rather than simply closing it. Annual residency verification is required.

What is MiFID II and why does it affect my ETFs?

MiFID II is an EU financial regulation that restricts European residents from purchasing US-registered financial products, including most US ETFs. If you become an EU legal resident, IBKR will comply with these rules, and you'll lose access to funds like Vanguard VTI or iShares IVV. The practical workaround is EU-listed equivalents (such as VWCE on Euronext), which offer similar exposure. Be aware that EU-domiciled funds can trigger PFIC tax complications on your US return — consult a specialist before switching.

Can I keep contributing to my IRA if I move abroad?

It depends on your country of residence. IBKR restricts new IRA contributions for residents of Australia, Canada, the EEA, Hong Kong, India, Japan, and Singapore, among others. Your existing IRA generally isn't closed — you just can't contribute to it or open new retirement accounts. This is a significant planning consideration; consult an expat tax advisor before your move.

Is IBKR's platform difficult to use?

The primary platform (Trader Workstation) has a steep learning curve and dated interface. For retirees who are primarily managing a buy-and-hold portfolio, you won't use most of its features. IBKR also offers a simpler web interface called Client Portal and a mobile app — most retirees find one of these more practical for day-to-day account management. You can open a free paper trading account to explore the interface before committing real money.

How do I transfer my existing brokerage account to IBKR?

Transfers are done via ACATS, the standard brokerage transfer system used across the US industry. Initiate the transfer from IBKR's side, and it typically takes 3–7 business days. IBKR charges no transfer-in fee. Your current brokerage may charge a transfer-out fee (commonly $50–$75) — check before initiating. Open your IBKR account first, then request the transfer.

Can I keep my Merrill Edge account if I move abroad?

Not reliably once you're a legal resident overseas. Merrill Edge requires a permanent US address and can close your account if your US residency lapses. Call Merrill and get your specific situation confirmed in writing before you move. For a brokerage built for non-resident US clients, see the keeping US accounts guide for your options.

Sources

Interactive Brokers Affiliate Programs — IBKR official page on referral and influencer programs
ExpatFinance.us — Interactive Brokers — Expat-specific IBKR account details and compliance notes
US Brokerage Account Closures for Expats 2026 — Get Where Next — Overview of which US brokerages are closing expat accounts
Best Brokerage Accounts for US Expats — The Casual Capitalist — Comparative review of expat-friendly brokerages
Interactive Brokers for Expats — Expat Wealth At Work — Detailed cost analysis for expats
What Is the Right Way for a US Expat to Sign Up for Interactive Brokers? — Bogleheads — Community discussion on setup strategy
Keeping US Brokerages While Living Abroad — Bogleheads — Forum thread on expat brokerage retention
What Is the Best Brokerage for Expats? — Walkner Condon Financial Advisors — Professional financial advisor perspective
Interactive Brokers Review 2026 — The Poor Swiss — Comprehensive independent review
Interactive Brokers Available Countries List — Official IBKR country availability
Merrill Edge for Non-U.S. Residents — Brokerage-Review.com — Account requirements and non-resident access rules (updated 2026-04-03)
ZacksTrade International Client FAQ — ZacksTrade Official — Account eligibility, documentation requirements, and funding for non-US residents
Passive Foreign Investment Company (PFIC) — Bogleheads Wiki — Overview of PFIC classification and US tax consequences for foreign fund holdings
US Tax Pitfalls for a US Person Living Abroad — Bogleheads Wiki — Comprehensive overview of PFIC, MiFID II, and the catch-22 for US expat investors in the EU

The investment account is one piece of the picture.

Once you're abroad, your US tax obligations don't stop — and the forms get more complex. Our taxes guide covers FBAR, FATCA, the PFIC trap for foreign funds, and how to avoid double taxation on retirement income.

US Taxes When You Retire Abroad