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.
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.
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.
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.
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.
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.
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.
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:
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.