You can trade international stocks from the US through a regular brokerage account, but you need a broker that offers foreign exchanges and you may pay currency conversion fees

Most US brokerages let you buy stocks listed on foreign exchanges — you do not need a separate account or special permission. The main requirement is choosing a broker that actually offers access to the exchanges where those stocks trade. Some brokers limit you to US markets; others give you the world. You will also encounter currency conversion costs when you buy a stock priced in euros, yen, or pounds, and those costs vary by broker and by the size of your trade.

The process itself is straightforward: you log into your brokerage account, search for the stock by its ticker symbol and exchange code, and place an order the same way you would for a US stock. Settlement and tax reporting work differently than they do for domestic stocks, though, and those differences matter for your record-keeping and your tax return.

Key Takeaways

  • Not all brokerages offer access to foreign exchanges — you need to confirm your broker supports the specific exchange where your target stock trades before opening an account.
  • International stocks are quoted in their local currency, and your broker will convert the money at their exchange rate, which includes a markup that varies by broker.
  • You will receive a 1099-B form from your broker reporting gains and losses on international stocks, and you may also owe foreign tax withholding on dividends depending on tax treaties.
  • Settlement takes longer for foreign stocks than for US stocks — typically three to five business days instead of two — which affects when your money clears.
  • Currency fluctuations affect your returns: if the dollar strengthens against the euro after you buy a German stock, your position loses value even if the stock price stays the same.

Which brokerages offer access to international exchanges

The major US brokerages that support international trading include Interactive Brokers, Charles Schwab, Fidelity, E*TRADE, and TD Ameritrade. Each one covers different exchanges and charges different fees, so the right choice depends on which country's stocks you want to buy and how often you trade.

Interactive Brokers offers the widest access — you can trade on exchanges in more than 150 countries — but it has a steeper learning curve and requires a $10,000 minimum account balance. Charles Schwab and Fidelity both offer broad international access with lower minimums and more beginner-friendly platforms. E*TRADE and TD Ameritrade support major exchanges in Canada, the UK, Europe, and Asia, though with fewer options than Interactive Brokers.

Before you open an account, check the broker's website to confirm they support the specific exchange you need. A stock traded on the London Stock Exchange requires different access than one on the Tokyo Stock Exchange, and not every broker offers both. If you are buying a stock from a smaller market — Iceland, Portugal, or New Zealand, for example — you may find only one or two brokerages that support it.

How currency conversion works and what it costs

When you buy a stock priced in a foreign currency, your broker converts US dollars to that currency at an exchange rate. That rate is not the mid-market rate you see on financial news sites — it includes a markup that is the broker's profit on the conversion. The markup typically ranges from 0.5% to 2% of the transaction, depending on the broker and the currency pair.

Interactive Brokers generally charges the lowest markup, often under 0.5%, because it caters to active traders who care about costs. Charles Schwab and Fidelity charge higher markups — usually 1% to 1.5% — but offset that with lower per-trade commissions or no commissions at all. Some brokers also charge a flat fee per international transaction on top of the currency markup.

The conversion happens twice: once when you buy the stock (dollars to foreign currency) and again when you sell it (foreign currency back to dollars). If the dollar weakens between those two events, the second conversion works in your favor. If the dollar strengthens, it works against you. That currency movement is separate from whether the stock itself went up or down, and it can be the largest cost or gain in your trade.

How to find and place an order for an international stock

You need the stock's ticker symbol and the exchange code where it trades. A German stock might trade under the symbol "SAP" on the Xetra exchange (code: EXE), while the same company might also trade on the Frankfurt Stock Exchange (code: FRA) or the New York Stock Exchange as an American Depositary Receipt (ADR). The exchange code matters because the same company can have different prices on different exchanges, and you need to specify which one you want.

Once you have the symbol and exchange code, log into your brokerage account and search for the stock. Most brokers have a search box where you type the symbol and select the exchange from a dropdown menu. The stock will display in its local currency — if you are buying a stock on the London Stock Exchange, the price will show in pounds sterling, not dollars. Your broker will show you the converted dollar amount before you confirm the order.

Place the order the same way you would for a US stock: choose the number of shares, select a market order (buy at the current price) or a limit order (buy only if the price drops to a specific level), and confirm. Market orders for international stocks usually fill within seconds during that exchange's trading hours. Limit orders may take longer or may not fill at all if the stock never reaches your target price.

Settlement timing and when your money clears

US stocks settle in two business days — you buy on Monday, the stock is yours on Wednesday. International stocks settle in three to five business days depending on the country and the exchange. A stock on the London Stock Exchange settles in two business days (T+2), but a stock on the Tokyo Stock Exchange settles in three business days (T+3). Some smaller exchanges take five days.

This matters because you cannot sell the stock or receive dividends until settlement is complete. If you buy a stock on Monday and it settles on Thursday, you cannot sell it until Thursday at the earliest. If you are using margin (borrowed money) to buy international stocks, your broker may charge interest on the borrowed amount until settlement clears, even though you own the stock.

Check your broker's settlement schedule for the specific exchange you are trading on. Most brokers display this information in their order confirmation or in their help documentation for international trading.

Tax reporting and dividend withholding on international stocks

Your broker will send you a 1099-B form at the end of the year reporting all your gains and losses on international stocks, just as they do for US stocks. You report these on your federal tax return the same way. The difference is that some countries withhold tax on dividends before the money reaches your account.

The US has tax treaties with most developed countries that reduce the withholding rate. Without a treaty, a foreign country may withhold 30% of your dividend. With a treaty, the rate often drops to 15% or lower. Your broker will apply the treaty rate automatically if you have provided a valid W-9 form, but you need to confirm this before you buy the stock.

If a foreign country withholds more tax than the treaty allows, you may be able to claim a foreign tax credit on your US tax return to recover the overpayment. This requires filing Form 1118 with the IRS and keeping detailed records of what was withheld. Many individual investors find this process complicated and choose to absorb the extra withholding rather than file the additional form.

Currency risk and how it affects your returns

When you buy an international stock, you are making two bets: one on the stock itself and one on the currency. If you buy a stock on the German exchange for 100 euros and the euro strengthens against the dollar, your position gains value even if the stock price stays flat. If the euro weakens, your position loses value even if the stock price rises.

Over long holding periods, currency movements can be as large as stock price movements. A stock that gains 20% in its local currency but loses 15% in dollar value because the currency weakened will show a net gain of only about 4% in your US account. Conversely, a stock that loses 10% in local currency but gains 25% because the currency strengthened will show a net gain of about 13%.

You cannot easily hedge this currency risk in a regular brokerage account without using options or currency futures, which are complex and carry their own costs. Most individual investors simply accept currency risk as part of international investing. If you want to reduce it, you can look for stocks that trade as American Depositary Receipts (ADRs) on US exchanges — these eliminate currency conversion because they are priced in dollars.

Alternatives to buying individual international stocks

If the complexity of currency conversion, settlement timing, and foreign tax withholding feels like too much, you have simpler alternatives. International mutual funds and exchange-traded funds (ETFs) let you own a basket of foreign stocks through a single US-traded security. You buy and sell them like any US stock, your broker handles all currency conversion behind the scenes, and you receive a single 1099 form at year-end.

ETFs that track international indexes — like the Vanguard FTSE Developed Markets ETF (VEA) or the iShares MSCI EAFE ETF (EFA) — charge annual fees of 0.05% to 0.33% and give you exposure to hundreds of stocks across multiple countries. These funds are especially useful if you want to own stocks from several countries but do not want to research and manage individual positions.

ADRs are another middle ground. These are certificates representing shares of a foreign company, and they trade on US exchanges in dollars. You buy and sell them like US stocks, with no currency conversion needed. The downside is that not every international stock has an ADR — most do not — so your choices are limited to larger, more established companies.

Frequently Asked Questions

Can I trade international stocks during US market hours?

No. International exchanges operate on their own schedules. The London Stock Exchange opens at 8 a.m. London time (3 a.m. US Eastern time) and closes at 4:30 p.m. London time (11:30 a.m. US Eastern time). The Tokyo Stock Exchange opens at 9 a.m. Japan time (7 p.m. US Eastern time the previous day) and closes at 3 p.m. Japan time (1 a.m. US Eastern time). You can only place orders during those windows.

What happens if I sell an international stock and the currency moves before settlement?

Your broker locks in the exchange rate at the time you place the sell order, not at settlement. The dollars hit your account at that locked-in rate three to five business days later. Currency movements between the order and settlement do not affect you.

Do I pay US capital gains tax on international stocks?

Yes. Gains on international stocks are taxed the same way as gains on US stocks — short-term gains (held under one year) are taxed as ordinary income, and long-term gains (held over one year) are taxed at the lower capital gains rate. You report them on Schedule D of your tax return.

Can I use a retirement account like an IRA to buy international stocks?

Yes, if your IRA provider offers international trading. Most major brokerages that support IRAs — Fidelity, Charles Schwab, Interactive Brokers — allow you to buy foreign stocks inside a traditional or Roth IRA. The tax treatment is the same as for US stocks: gains are tax-deferred in a traditional IRA and tax-free in a Roth IRA.

What if my broker goes out of business?

Your stocks are protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 per account at a failed brokerage. This protection applies to international stocks the same way it applies to US stocks. Your shares remain yours and will be transferred to another broker.