Quick Answer
Yes — investing with an ITIN is completely legal. No federal law prevents ITIN holders from owning stocks, ETFs, or opening retirement accounts. Fidelity, Schwab, and Vanguard all accept ITIN for brokerage and Roth IRA accounts. Open an account online with your ITIN, foreign passport, and U.S. address. A Roth IRA is the most tax-advantaged account available to ITIN holders with earned income.
Can Undocumented Immigrants Invest?
Yes — completely legally. Investing in the U.S. stock market is a passive activity, not employment, so it requires no work authorization, green card, or Social Security Number. The only requirement is that you pay taxes on your investment income using your ITIN. Undocumented immigrants paid an estimated $96.7 billion in taxes in 2022.
Legal and Allowed
There is no law preventing undocumented immigrants from investing in the U.S. stock market. You are required to report and pay taxes on investment income (dividends, capital gains) — your ITIN is the tax ID you use to do exactly that.
According to the Institute on Taxation and Economic Policy, undocumented immigrants in the U.S. paid an estimated $96.7 billion in federal, state, and local taxes in 2022 — at a 26.1% effective rate, comparable to the median U.S. household. The IRS created the ITIN specifically to allow people without SSNs to meet their tax obligations. That same tax ID opens the door to legal, tax-advantaged investing in the United States.
Which Brokerages Accept ITIN?
Not all investment platforms accept ITINs, but several major, established brokerages do, including Fidelity and Charles Schwab. These firms let ITIN holders open both taxable brokerage accounts and tax-advantaged IRAs. The list below shows what is currently verified as of 2026 and which account types each one supports.
One of the best options for ITIN holders. Fidelity accepts ITIN for individual brokerage accounts, Roth IRA, and Traditional IRA. Call their support line and ask to open an account as a non-resident with an ITIN — they have a specific process for this. No account minimums on most accounts.
Accepts ITIN for brokerage and IRA accounts. Also has an international account option for non-residents. Good choice if Fidelity's process feels complex — Schwab's branch staff are generally well-trained on ITIN accounts. See our full walkthrough on opening a Charles Schwab account with an ITIN.
Accepts ITIN for brokerage and retirement accounts. Best known for low-cost index funds. Ideal if you want a simple, long-term investing approach with minimal fees. Note: Vanguard's online account opening may require a phone call to complete with an ITIN — see our guide to opening a Vanguard account with an ITIN.
As of 2026, Robinhood requires a Social Security Number and does not accept ITIN. If you currently have a Robinhood account, you may have opened it before this policy tightened. Use Fidelity or Schwab instead.
How to Open With an ITIN
When starting the account opening process at Fidelity or Schwab, you will be asked for a Social Security Number. Enter your ITIN. If the online form rejects it, call the brokerage directly. Tell them you are a non-resident with an ITIN and want to open an individual brokerage account. Both Fidelity and Schwab have a process for this — it may require mailing in a completed W-7 or W-8BEN form, which their representative can walk you through.
Can I Open a Roth IRA or Traditional IRA With an ITIN?
Yes. ITIN holders can open both a Roth IRA and a Traditional IRA, and both Fidelity and Charles Schwab accept an ITIN to do so. For 2026, you can contribute up to $7,500 per year if you are under 50. An IRA is one of the most powerful tax-advantaged tools available in the U.S.
The IRS explains the contribution and income rules in its Roth IRA overview.
A Roth IRA is particularly useful for ITIN holders. You contribute after-tax dollars, and your investments grow completely tax-free. When you retire, qualified withdrawals are tax-free. For many income levels, it is one of the most tax-efficient retirement tools available in the U.S.
Earned Income Requirement
To contribute to a Roth or Traditional IRA, you must have earned income equal to or greater than your contribution. Earned income includes wages, freelance payments, self-employment income, or any cash work you report on your tax return. Investment income (dividends, capital gains) does not count. Even $7,500 in reported freelance income is enough to make the maximum IRA contribution.
For a full breakdown of when to choose each, see Roth IRA vs. Traditional IRA for ITIN Holders.
Should ITIN Holders Open a Taxable Brokerage Account or Roth IRA First?
Open the Roth IRA first if you have earned income and are eligible — the tax-free growth is too valuable to skip. The 2026 contribution limit is $7,500 ($8,600 if age 50+). After maxing the Roth, open a taxable brokerage account with no contribution limit. Without earned income, or above the $153,000 single-filer phase-out, start with the taxable account.
Roth IRA vs. Taxable Account: The Short Version
Roth IRA first: Tax-free growth, $7,500/year limit (2026), requires earned income, income limits apply · Best for long-term retirement savings
Taxable brokerage second: No contribution limit, no income requirement, gains taxed when sold · Best for goals before retirement or when IRA is maxed
How Do I Open an IRA With an ITIN in 5 Steps?
- Have a valid ITIN. Apply using IRS Form W-7 alongside your federal tax return. Processing takes 7–11 weeks. If you already have an ITIN, confirm it has not expired (check the middle two digits against the IRS renewal schedule).
- Confirm you have earned income. You need earned income (wages, freelance, or self-employment) equal to at least your planned contribution. Investment income does not count. Even $7,500 in reported freelance income qualifies you for the maximum annual contribution.
- Choose a Roth IRA or Traditional IRA. Most ITIN holders benefit from a Roth IRA — you pay taxes on contributions now, and all growth is completely tax-free in retirement. A Traditional IRA gives you a deduction now but taxes withdrawals later.
- Open at Fidelity or Charles Schwab. Both accept ITIN for Roth and Traditional IRA accounts. Start the online application and enter your ITIN where it asks for an SSN. If the form flags it, call the brokerage directly — both have a documented process for ITIN holders.
- Automate your contributions. Link your bank account and set up automatic biweekly or monthly transfers. The 2026 limit is $7,500/year ($8,600 if age 50 or older). Contributing $288 every two weeks reaches the annual maximum.
What Should ITIN Holders Invest In?
Most ITIN holders should keep it simple and invest in 1 or 2 broad, low-cost index funds rather than picking individual stocks. A total U.S. market fund, optionally paired with an international fund in an 80/20 split, gives you instant diversification and lets your money compound over decades. The details are below.
The Simple Strategy That Works
Pick one index fund (VOO or FSKAX), contribute whatever you can afford each month, and do not touch it. This is called "dollar-cost averaging." Over long time horizons, broad index investing has historically outperformed most actively managed funds — though past performance does not guarantee future results. You do not need to watch the market. Set it, forget it, let it compound.
As your balance grows, learn how to split your money across stocks and bonds with asset allocation for ITIN holders, how to stay the course during a market crash, and how reaching Coast FIRE can let you stop adding new money once you've saved enough.
How Are Investment Gains Taxed for ITIN Holders?
Investment gains are taxable in the U.S., and your ITIN is the tax ID you use to report them. Long-term capital gains on assets held over 1 year are taxed at lower rates than short-term gains, and qualified dividends get favorable treatment too. Inside a Roth IRA, qualified growth is tax-free. Here is what to expect:
W-9 vs W-8BEN: Which Form Does Your Brokerage Need?
When you open a brokerage account, you will be asked to certify your tax status. Which form you use depends on your residency for tax purposes:
Keep Your ITIN Active
Your ITIN expires if you do not file a federal tax return for 3 consecutive years. File every year — even if you owe no tax. An expired ITIN means your brokerage cannot process your tax documents, which creates complications. Renewing an expired ITIN takes 7–11 weeks.
Frequently Asked Questions
Can I invest in the stock market with an ITIN?
Yes. ITIN holders can invest in the U.S. stock market through Fidelity, Charles Schwab, and Vanguard — all three accept ITIN for individual brokerage accounts. Investing is a passive activity and does not require work authorization. You will report dividends and capital gains using your ITIN when you file taxes each year. Robinhood does not currently accept ITIN.
Can I open a Roth IRA with an ITIN?
Yes. Fidelity and Charles Schwab both allow ITIN holders to open Roth IRA and Traditional IRA accounts. You can contribute up to $7,500 per year (2026 limit; $8,600 if age 50 or older) as long as you have earned income — including freelance, self-employment, or any cash income you report on your taxes. A Roth IRA grows completely tax-free.
Does Robinhood accept ITIN?
No. As of 2026, Robinhood requires a Social Security Number and does not accept ITIN for new account openings. Use Fidelity, Charles Schwab, or Vanguard instead — all three accept ITIN and have no account minimums for individual brokerage accounts.
How much money do I need to start investing?
Fidelity and Schwab have no minimum investment requirement for brokerage accounts or Roth IRA accounts. You can start with $1. VOO (Vanguard S&P 500 ETF) and FSKAX (Fidelity Total Market Index Fund) allow fractional shares at Fidelity, so you can invest any dollar amount. Start with whatever you can afford — the habit of consistent investing matters more than the initial amount.
Do I need a W-9 or W-8BEN to open a brokerage account?
It depends on your tax residency. If you live and work in the U.S. and file a resident tax return (Form 1040), you use a W-9 and are taxed at standard U.S. dividend and capital gains rates. If you live outside the U.S. or file as a non-resident alien (Form 1040-NR), you use a W-8BEN — and your brokerage will withhold 30% on dividends by default. Most ITIN holders who live in the U.S. use a W-9.
Do I need to file taxes if I have investment income?
Yes. Dividends and capital gains must be reported on your annual federal tax return using your ITIN. Your brokerage will send you a 1099 form summarizing your investment income at the end of the year. Filing taxes also keeps your ITIN active — an ITIN expires if you do not file for 3 consecutive years.