Can Undocumented Immigrants Invest?

Yes — completely legally. Investing in the U.S. stock market is a passive activity. It is not considered employment and does not require work authorization, a green card, or a Social Security Number. The only requirement is that you pay taxes on your investment income, which is exactly what your ITIN is for.

✅ 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.

Brokerages That Accept ITIN

Not all investment platforms accept ITINs — but the major, established brokerages do. Here is what is currently verified as of 2026.

Fidelity ✅ ITIN Accepted

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.

Charles Schwab ✅ ITIN Accepted

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.

Vanguard ✅ ITIN Accepted

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.

Robinhood ❌ SSN Only

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.

Roth IRA & Traditional IRA With an ITIN

An IRA (Individual Retirement Account) is one of the most powerful financial tools available in the U.S. — and ITIN holders can open one. Both Fidelity and Charles Schwab allow ITIN holders to open IRA retirement accounts.

Roth IRA Recommended
Tax treatmentContribute after-tax; growth is tax-free
2026 limit$7,000/year ($8,000 if 50+)
WithdrawalsTax-free in retirement (age 59½+)
Income requirementEarned income required (any amount)
Best forMost ITIN holders — long-term tax-free growth
Traditional IRA
Tax treatmentContribute pre-tax; growth is tax-deferred
2026 limit$7,000/year ($8,000 if 50+)
WithdrawalsTaxed as ordinary income in retirement
Income requirementEarned income required
Best forHigher earners expecting lower income in retirement

A Roth IRA is particularly powerful for ITIN holders. You contribute after-tax dollars, and your investments grow completely tax-free. When you retire, all withdrawals are tax-free. There is no better long-term wealth-building tool available in the U.S. for most income levels.

⚠ 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 $7,000 in reported freelance income is enough to make the maximum IRA contribution.

What to Invest In

If you are new to investing, the single best decision is to keep it simple. Do not try to pick individual stocks. Put your money in a broad index fund and let it compound over time.

VOO
Vanguard
Vanguard S&P 500 ETF
Tracks the 500 largest U.S. companies. Expense ratio: 0.03%. Historically averages ~10% annual return over the long term. The most widely held index ETF in the world. Available at Fidelity, Schwab, and Vanguard.
FXAIX
Fidelity
Fidelity 500 Index Fund
Fidelity's version of the S&P 500 index fund. Expense ratio: 0.015% — even lower than VOO. No minimum investment. Excellent choice if you open your account at Fidelity.
VTI
Vanguard
Vanguard Total Stock Market ETF
Even broader than VOO — tracks the entire U.S. stock market including small and mid-cap companies. Expense ratio: 0.03%. Good alternative to VOO for maximum diversification.

💡 The Simple Strategy That Works

Pick one index fund (VOO or FXAIX), contribute whatever you can afford each month, and do not touch it. This is called "dollar-cost averaging." Over 10, 20, or 30 years, this approach consistently outperforms the vast majority of active investors — including professionals. You do not need to watch the market. Set it, forget it, let it compound.

Taxes on Investment Income

Investment income is taxable in the U.S. Your ITIN is the tax identification number you use to report it. Here is what to expect:

Dividends
If your investments pay dividends (most S&P 500 funds do), that income is taxable in the year you receive it. Your brokerage will send you a 1099-DIV form at the end of the year. Report it on your tax return using your ITIN.
Capital Gains
If you sell investments for a profit, that gain is taxable. Gains on investments held longer than 1 year are taxed at the lower long-term capital gains rate (0%, 15%, or 20% depending on your income). Gains on investments held less than 1 year are taxed as ordinary income. This is why long-term investing is tax-advantaged.
Roth IRA — No Tax on Growth
Investments inside a Roth IRA grow completely tax-free. No 1099s, no capital gains tax, no dividend tax. This is the single biggest advantage of a Roth IRA — 30 years of compounding with zero tax on any of the growth.

⚠ 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 $7,000 per year (2026 limit) 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 FXAIX (Fidelity 500 Index Fund) allow fractional shares at both Fidelity and Schwab, 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 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.