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If you have a social security number or ITIN (Individual Taxpayer Identification Number), you can easily invest in stocks. As per the Department of Homeland Security, people who are not citizens have an SSN if they stay in the U.S. for work. However, if you don’t get an SSN, you can get an ITIN and open a trading account with a broker.
How to Buy Stocks Without SSN?
To buy stocks without SSN in the US, you need to provide your broker with an Individual Taxpayer Identification Number (ITIN). You can get ITIN from IRS (Internal Revenue Service) if you mail your W-7, tax return, proof of identity, and foreign status documents to the IRS Austin Service Center.
Many traders outside the US think that they can not trade US stocks and use US brokers if they do not have US citizenship. It is a mistake. You do not need SSN, just ITIN to trade using a US broker. Investing With an ITIN Number in the US means that you are covered for later tax purposes and gives your trading and supporting legal aspect.
Can undocumented immigrants invest in the stock market?
Yes, suppose you are an undocumented immigrant in the US. In that case, you can invest in the stock market because no law forbids individuals (immigrants) who are not citizens of the U.S. from participating in the US stock market. However, some US brokers will ask you to provide SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number).
IF you are an undocumented immigrant in the US, you can do two things:
- You can trade and invest using US brokers that offer accounts for Non-US citizens, such as Charles Schwab International, TD Ameritrade, etc.
- You can trade and invest using a Non-USA broker that offers US stocks such as HF, Avatrade, Capital, etc.
How to get an ITIN?
If you are not qualified or have the right to work in the U.S. and do not have an SSN, you can get an ITIN. This number makes the taxpaying process for noncitizens and non-permanent citizens easier. Moreover, if you are a trader who invests online, you will have to pay taxes. Fill out an IRS Form W-7 or IRS acceptance agent to get this number. You need to attach an ID or legible documents to verify your identity.
Can I use Robinhood without SSN?
No, you can not use Robinhood without SSN. Social Security Number is something that each member of the Robinhood trading broker needs to have.
Can you use ITIN for Robinhood?
You can not use ITIN for Robinhood trading broker because you need to be a US citizen with an SSN. Many non-US residents use ITIN to trade using US brokers, but Robinhood does not allow that. However, you can have a valid U.S. visa and SSN if you do not have permanent US citizenship.
So there is an exception for some traders that you can use Robinhood if you do not have permanent US citizenship. However, you need to provide SSN to Robinhood. Remember, If You Requested an SSN When You Applied for Your Visa, you could get an SSN without permanent US citizenship.
Why does Robinhood need my SSN?
Robinhood needs your SSN because they need to cover their business to IRS and make clear proof that you are a US citizen or the person who has a US visa and is given an SSN for tax purposes. SSN is essential for Robinhood for client verification and later tax purpose.
Is it safe to give Robinhood your social security number?
Yes, it is safe to give Robinhood your social security number (SSN) because they are financial institutions that need to verify clients and cover their business for later tax purposes – either client or broker.
Do you need SSN for Webull?
No, you do not need SSN for Webull. If you are not a US citizen or do not want to provide SSN, you can provide an Individual Taxpayer Identification Number (ITIN) to a Webull broker. You can get ITIN from IRS (Internal Revenue Service) if you mail your W-7, tax return, proof of identity, and foreign status documents to the IRS Austin Service Center.
Webull represents a US broker that allows investors and traders to provide SSN or ITIN numbers. In that case, you do not need to be a US citizen. You can provide ITIN and later pay only tax as an alien.
Why does Gemini ask for SSN?
US law states that companies like Gemini need to ask for SSNs and verify clients. In this case, the US can monitor tax payments for companies and clients. It is safe to provide your SSN and verify your identity with Gemini.
How to open an account using a US broker?
If you have acquired your ITIN or SSN, you can start trading by opening an account at a brokerage. You can determine your needs and choose from many available brokerages. You can also compare and contrast the features of different brokerages from trusted websites like Barrons.com or Kiplinger.com, which rank them based on several factors like technology, fee, etc. You also need a passport, driver’s license, employment status, government-issued ID, and financial info to open an account.
How to choose the type of account?
After opening an account with the brokerage, you need to define how you will pay taxes, how you will use the uninvested money, and if anyone else will be trading on your behalf. You have to decide between a cash or margin account too. In a cash account, you have to pay the total amount for the trades you make. While in margin accounts, you can borrow from your brokerage and keep your current stocks as collateral and pay them back in full in the future. Since you are borrowing in this account, you will need to pay interest on the outstanding balances. The latter is a risk for new investors and not recommended.
Rules and regulations
Securities and Exchange Commission and Financial Regulatory Authority direct you to report the profits you make on your investments. You will have to utilize the ITIN or SSN as an identifier to file the taxes. Additionally, as per the Patriot Act of 2001, criminals with a history of fraud will be barred from opening an account or using SSN or ITINs.