How to Invest in US Stocks From Abroad: A Complete Guide for Latin America

Why Wall Street

The New York exchanges, NYSE and Nasdaq, are the largest and most liquid in the world. They list companies like Apple, Microsoft and Nvidia, plus thousands of ETFs that track indexes such as the S&P 500 or the Nasdaq 100. For someone living in Latin America, trading there means more choices, lower spreads and prices in dollars.

This guide walks through the whole process: how to open the account, which forms you fill out, what hours you trade and which US taxes apply to a foreigner. Your own country's taxes are a separate matter and depend on where you're a tax resident.

Two ways in: an international broker or a local route

1. International broker. You open an account directly with a broker that accepts clients from your country. Interactive Brokers, for example, publishes a list of countries where you can open an account that includes Guatemala, Mexico, Colombia, Peru, Chile, Argentina, El Salvador, Honduras, Costa Rica, Panama and Nicaragua. Charles Schwab International says it doesn't require a minimum deposit for individual accounts, although it doesn't publish the list of countries it accepts.

2. Local route. You buy from your own country, in local currency, through a domestic intermediary:

• Mexico: the exchange's Sistema Internacional de Cotizaciones (SIC, its international quotation system). See the guide investing from Mexico.
• Colombia: the Mercado Global Colombiano (MGC, Colombia's global market). See the guide investing from Colombia.
• Argentina: CEDEARs, certificates issued in Argentina and backed by foreign shares, which trade on BYMA.

The local route is usually simpler for taxes and transfers; an international broker gives you direct access to the whole market, options and extended hours. To compare, see how to choose a broker.

Step by step: opening an account with an international broker

1. Confirm the broker accepts residents of your country and which entity in its group you're signing the contract with: your protection depends on it.
2. Get your documents ready: a passport or national ID and a recent proof of address.
3. Fill out Form W-8BEN during the application (we explain it below).
4. Choose the account type: cash or margin. If you're just starting, a cash account keeps you from trading with borrowed money.
5. Fund it with an international wire in dollars. Ask your bank what it costs: on small amounts it can weigh more than the broker's commissions.
6. Practice first in the demo account these brokers usually offer.

If your capital is small, look for fractional shares: Interactive Brokers, for example, lets you buy fractions of more than 10,500 US stocks and ETFs starting at $1.

Form W-8BEN

Form W-8BEN is the IRS form you use to certify that you're not a US tax resident. It lets the broker apply foreign-investor withholding and, if your country has a tax treaty with the US, the reduced treaty rate.

• You fill it out once when you open the account, usually online.
• Without a US taxpayer ID number, it expires on the last day of the third calendar year after the year you sign it. If you let it lapse, you're withheld at the full rate and lose the treaty benefit. Your broker will remind you to renew it.

Wall Street hours in Latin American time

The regular NYSE and Nasdaq session runs from 9:30 a.m. to 4:00 p.m. New York time. The US changes its clocks in March and November; Guatemala and most of Central America don't. That's why the local time shifts depending on the time of year:

In 2026, the US goes back to standard time on November 1. Outside the regular session there's less liquidity and more volatility, and each broker offers different extended hours.

Since May 2024, US stock trades settle on T+1: one business day after the trade.

US taxes for Latin American investors

This is general information, not tax advice. On top of what the US charges, your country may tax these investments depending on your tax residence.

• Dividends: the US withholds 30% from foreigners unless their country has a tax treaty. In the region, the countries with a US tax treaty are Mexico (10% on portfolio dividends), Chile (15%, in force since 2024), Venezuela, Barbados, Jamaica and Trinidad and Tobago. Guatemala, the rest of Central America, Colombia, Peru and Argentina have no treaty, so withholding is 30%.
• Capital gains: in general, the US doesn't tax gains from selling stocks for a foreigner who spends fewer than 183 days a year in the country.
• Portfolio interest and bank deposit interest: in general, foreigners pay no US tax on it.

The estate tax: the risk almost nobody explains

If a nonresident foreigner dies with more than $60,000 in US-situated assets, their heirs must file a return with the IRS and may owe estate tax, at rates of up to 40%. Shares of US companies count as US assets even if they're held at a broker outside the country. The $60,000 threshold isn't adjusted for inflation.

The US has estate tax treaties with 15 countries, and none of them is in Latin America.

That's why many investors in the region use Ireland-domiciled UCITS ETFs that track the same indexes (for example, the S&P 500). US law only treats shares issued by US companies as US assets, so these Irish funds generally fall outside the estate tax. On top of that, thanks to the US–Ireland tax treaty, the fund usually pays 15% withholding on US dividends instead of the 30% you would pay directly.

If your assets in the US are over $60,000, or will be, talk to a tax advisor about how to structure them.

Protecting your account and trading rules

• SIPC: if your broker is a SIPC member in the US and fails, SIPC protects up to $500,000 per customer, including up to $250,000 in cash. It applies to foreign clients too, but only if your account is held at the broker's US entity, and it doesn't cover losses from market declines.
• Day trading: the pattern day trader rule and its $25,000 minimum were eliminated effective June 4, 2026, and replaced by intraday margin requirements. Brokers have until October 2027 to adapt, so some may still apply the old rule. Ask yours.
• Margin: trading with borrowed money magnifies both losses and gains. Read the risk management guide before you turn it on.