Stock Trading Without SSN
If you want to open a brokerage account with a U.S.-based investment firm but don’t have a Social Security Number (SSN),
don’t worry. While some brokerage houses may require an SSN in certain situations, there are multiple
ways to legally open a brokerage account without a Social Security Number. Firstrade is one such
brokerage company that provides accounts that can be opened with or without a Social Security Number.
Opening an Account with a Foreign Tax ID Number
Firstrade has an international account program. Residents and citizens of several foreign countries who don’t have a Social Security Number can open investment accounts under this program. A passport from an eligible country is required. Here is the list of eligible countries:
- Austria
- Belgium
- China
- Czech Republic
- Denmark
- Finland
- France
- Germany
- Hong Kong
- India
- Ireland
- Israel
- Italy
- Japan
- South Korea
- Macau
- Malaysia
- Mexico
- New Zealand
- Norway
- Poland
- Portugal
- Singapore
- Spain
- Sweden
- Taiwan
- Thailand
- United Kingdom
That’s quite a long list. However, not all countries are eligible. Firstrade does not open accounts for residents of other countries at this time.
To open an international account, simply go to Firstrade’s international account application page and provide the required details, including the foreign tax ID number and a copy of your passport. Everything is done online, so no paper form is needed.
Once the international account is open, it can be funded via an ACH or wire transfer. For the ACH option, a U.S.-based bank account must be used. A foreign bank account can be used for a wire transfer.
Once the account is funded, it will have the same trading capabilities as a domestic account, with the same commission schedule. This means zero trading fees on many products.
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Opening a Trading Account with an ITIN
A domestic brokerage account with Firstrade can be opened with an ITIN, which stands for Individual Taxpayer Identification Number. This is a tax ID number issued by the IRS. It has the same nine-digit format as a regular SSN and always begins with the number 9, making it easily distinguishable from a regular SSN.
The downside of the ITIN is that only certain people are eligible for it. Nonresident and resident aliens who don’t qualify for a Social Security Number may be able to get an ITIN. Their dependents and spouses may also be eligible. People who live in the United States but don’t have the right to work may also qualify for an ITIN.
Applying for an ITIN can be a bit bureaucratic since the IRS does not offer an online form. Form W-7 is the required application, and it can be downloaded from the government’s website. However, it must be submitted in hard-copy format. Instructions for the form are available online.
The instructions list all the documents that must be submitted with the form. Be sure to include all the required paperwork when sending the form to the IRS. If you’re missing any documents, you can apply through a Taxpayer Assistance Center or a Certifying Acceptance Agent.
Once the ITIN is issued, it should be used on Firstrade’s application page just like an SSN. The account will be associated with the ITIN, and any taxes owed will be reported to the IRS using the ITIN.
Opening a Trading Account with an EIN
Firstrade offers accounts for entities, investment clubs, and retirement accounts for businesses and self-employed persons. These accounts can be opened using an Employer Identification Number (EIN) instead of an SSN or ITIN.
Unlike the ITIN, the EIN application is completely electronic, making it easier and faster to apply. The IRS’s digital application for the EIN is available only during weekdays. Since this is a business tax ID number, a business must exist to receive an EIN. It could be a side hustle or a small business.
Once the EIN is issued, it can be used instead of an SSN on Firstrade’s application page for business accounts. It can also be used to open a SIMPLE or SEP IRA at Firstrade, which can be done electronically.
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Applying for a Social Security Number
If none of the above methods seem suitable, you can always apply for an SSN. It is possible for non-U.S. citizens to get a Social Security Number in some cases. To qualify, you may need to reside in the U.S., District of Columbia, or U.S. territories and have legal authorization to work in the country. This authorization can be obtained through the Department of Homeland Security (DHS). An SSN can also be acquired through the U.S. Department of State when applying for an immigrant visa.
Foreign Brokerage Firms
Another option that won’t work with Firstrade is opening an account with a foreign-based brokerage firm that provides access to U.S. securities exchanges. An account with one of these foreign brokers allows you to trade U.S.-listed securities.
A caveat: these foreign firms are regulated by local and national laws, not U.S. securities laws, which could increase risks. However, some countries, like Canada, may have robust regulations for local investment accounts, making them a viable option for accessing U.S. markets.
Updated on 1/1/2025.
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