Can International Students Invest in the U.S. Stock Market?

For international students, studying in the U.S. is a chance to pursue your academic goals but often can present struggles to earn income due to employment F-1 visa employment restrictions. For many, investing in the stock market presents a potential opportunity to earn passive incomes. This causes a common question: can international students buy stocks while on an F-1, J-1, or other student visa?

In short, the answer is yes - but there’s key rules to be aware of. We cover what you need to look out for when investing as an international student in the U.S.

Can International Students Buy Stocks?

International students are legally allowed to invest in the U.S. stock market – including stocks, exchange-traded funds (ETFs), and mutual funds - as long as they follow tax and visa regulations. Investing is considered a passive activity, so it’s not classified as employment and does not violate student visa restrictions.

Opening a brokerage account is the first step, and requirements vary depending on the platform. Some brokerages require a Social Security Number (SSN), while others accept an Individual Taxpayer Identification Number (ITIN) or even just a passport and proof of address.

It’s important to note:

Passive investing is allowed – Buying and holding stocks does not count as employment.

Day trading is risky – If trading becomes frequent enough to look like self-employment, it could raise concerns.

Taxes still apply – Even if you’re on a student visa, the IRS requires you to pay taxes on investment income.

In short: international students can absolutely invest, but it must remain on a passive level and you must pay your fair share of taxes.

How can I ensure my investments are considered passive?

There’s a few key tips to ensure your investment actions do not creep into the “employment” territory.

• Invest in ETFs and mutual funds – ETFs and mutual funds typically are portfolios of groups of stocks managed by brokerages that you can buy shares of. These stocks tend to be lower risk but tend to be safe investments with less trading volume needed.
• Avoid day trading and high volume trading – You should try to minimize how many times you are buying/selling stocks – keeping it to a few trade per month/quarter.
• Do not advertise or offer trading services – Pretty self-explanatory, but even advertising free trading services can border on the point where your trading can be considered.

How can I start investing in the U.S.?

1. Choose a brokerage platform – Compare requirements from providers like Charles Schwab, Fidelity, or investment apps. Confirm whether they accept your identification documents.
2. Provide documentation – At minimum, you’ll need a passport and U.S. address. An SSN or ITIN makes the process smoother.
3. Understand taxes – Dividends and some capital gains may be taxed at a flat rate (often 30%), unless a tax treaty with your home country provides a lower rate.
4. Start small and diversify – Though stocks present an opportunity for extra income, it’s not a get rich quick scheme and carries risk. For beginners, ETFs and index funds can provide safer, broad exposure to the market.

FAQs About Investing in the U.S.

1. Do I need a Social Security Number (SSN) to invest as an international student?

Not always. While an SSN simplifies the process, some brokerages allow international students to open accounts using an ITIN or other identification. Requirements vary, so it’s worth comparing platforms.

2. Is investing considered employment under my visa?

No. Investing is a passive activity and is not considered unauthorized work. As long as you’re not relying on frequent trading as your main income, you remain in compliance with your visa.

3. How are international students taxed on stocks?

Non-resident students usually face:

• Dividends – Withheld at a flat 30% tax rate (sometimes lower if your country has a tax treaty).
• Capital gains – Often exempt if you’re classified as a non-resident alien, but rules differ by country. Always check IRS guidance or consult a tax advisor.

4. Can I use apps like Robinhood or Webull?

Sometimes. Apps like Robinhood generally require an SSN, while other brokerages may accept ITINs. Larger firms such as Charles Schwab or Interactive Brokers often have more flexible requirements for international students.