How to Buy International Stocks from the U.S. (2025 Guide)

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How to Buy International Stocks from the U.S.

Investing in international stocks is a smart way to diversify your portfolio beyond the U.S. markets. While the S&P 500, NASDAQ, and NYSE provide excellent opportunities, global exposure can help reduce risk and open the door to emerging markets.

In this 2025 guide, we’ll explain why you should consider international stocks, the different ways to buy them from the U.S., and which brokers provide the best access to global markets.

📌 Table of Contents

  1. Why Invest in International Stocks?

  2. Main Ways to Buy International Stocks from the U.S.
     • ADRs (American Depositary Receipts)
     • ETFs and Mutual Funds
     • Direct Global Brokerage Accounts

  3. Best U.S. Brokers for International Investing

  4. Step-by-Step: How to Buy International Shares

  5. Things to Consider Before Investing Globally

  6. Conclusion

1. Why Invest in International Stocks?

U.S. companies dominate global markets, but not every growth opportunity is based in America. By buying international shares, investors can:

  • Gain exposure to emerging markets (India, Brazil, Southeast Asia).

  • Invest in global leaders like Toyota (Japan), Samsung (South Korea), or Nestlé (Switzerland).

  • Hedge against U.S. dollar fluctuations.

  • Reduce risk by spreading investments across different economies.

2. Main Ways to Buy International Stocks from the U.S.

There are three common approaches U.S. investors can use:

🔹 ADRs (American Depositary Receipts)

ADRs are U.S.-listed securities that represent shares of foreign companies. They trade on U.S. exchanges in U.S. dollars, making them simple to buy.

Examples:

  • Alibaba (BABA) – China

  • Toyota Motor (TM) – Japan

  • Nestlé (NSRGY) – Switzerland

ADRs are convenient but don’t cover every international company.

🔹 ETFs and Mutual Funds

International ETFs and mutual funds allow you to buy a basket of overseas stocks in a single trade. They are cost-effective and diversified.

Examples:

  • Vanguard FTSE Emerging Markets ETF (VWO)

  • iShares MSCI EAFE ETF (EFA)

  • SPDR S&P International Dividend ETF (DWX)

This method is best for investors who want broad exposure without choosing individual foreign companies.

🔹 Direct Global Brokerage Accounts

Some U.S. brokers offer direct access to foreign stock exchanges, including Europe, Asia, and Australia. This allows you to purchase stocks in local currencies.

Platforms with global access include:

  • Interactive Brokers (IBKR) – 100+ global exchanges

  • Charles Schwab Global Account – 12+ markets including UK, Hong Kong, and Canada

  • Fidelity International Trading – limited overseas markets

This method provides the most control but may involve higher fees and currency exchange rates.

3. Best U.S. Brokers for International Investing

Here’s a quick comparison of top platforms for buying international shares:

Broker Global Markets Access Commission Monthly Fees Best For
Interactive Brokers 100+ exchanges worldwide Low ($0–$1/trade) $0–$10 Active global investors
Charles Schwab 12+ major markets Varies by region $0 Long-term global diversification
Fidelity Limited international Standard fees $0 Beginners testing global exposure
E*TRADE Limited (via broker assist) Varies $0 U.S. investors seeking simple access

4. Step-by-Step: How to Buy International Shares

  1. Choose your method – Decide if you want ADRs, ETFs, or direct global access.

  2. Open an account – Select a broker with international coverage.

  3. Research the company or ETF – Check financials, currency risk, and the market environment.

  4. Fund your account – Ensure you have sufficient USD or enable currency conversion if trading directly.

  5. Place your order – Use your broker’s platform to buy ADRs, ETFs, or foreign-listed shares.

  6. Monitor performance – Track your investments and consider tax implications.

5. Things to Consider Before Investing Globally

  • Currency Risk: Foreign stocks may fluctuate with exchange rates.

  • Tax Considerations: Some countries apply withholding tax on dividends.

  • Liquidity: Certain international markets may have lower trading volumes.

  • Brokerage Fees: Global trading often involves higher costs than U.S.-only trading.

6. Conclusion

Buying international stocks from the U.S. in 2025 is easier than ever. You can choose from ADRs for convenience, ETFs for diversification, or global brokerage accounts for full access.

If you’re just starting out, ETFs and ADRs may be the best first step. More advanced investors who want to trade directly on the Tokyo Stock Exchange, London Stock Exchange, or ASX should consider Interactive Brokers or Charles Schwab.

Tip: Always balance your portfolio between U.S. and international assets to achieve healthy diversification and reduce long-term risk.