Can you keep your US brokerage after moving to Japan? I compared Schwab, Fidelity, Vanguard & IBKR
The short version. What happens to your US brokerage when you move to Japan and become a non-resident depends entirely on the firm, and the outcomes split three ways: keep it and trade, keep it but no new buys (liquidate-only), or asked to close. Vanguard is the strictest; IBKR is the most flexible if you move to its Japan entity. The nastiest trap is the account that stays open but quietly stops letting you buy anything. So this isn’t a list of “right answers” — it’s what to check on your own account, and in what order, before you get on the plane.
I’m a Japanese national who spent four years working in the US, and I researched all of this while planning my own move back to Japan. My money is in dollars, and my plan was to keep living partly off US assets after the move. The wall I hit was a simple question with a messy answer: can I actually keep my US brokerage account once I’m a resident of Japan again?
If you’re an American moving to Japan, a returning expat, or anyone in this cross-border spot, you’re facing the same wall. Here’s what I found looking across the four brokers most people actually hold.
One thing up front, because it changes everything: if you are a US citizen or green-card holder, you stay on the hook for US taxes even after you move to Japan. Most of what’s below (about accounts and access) still applies to you, but your tax picture is a different, more complicated animal — I flag it where it matters, and you should get a cross-border tax professional. This article is one person’s research, not investment or tax advice.
First, three terms in 30 seconds
- Non-resident alien (NRA): for US tax purposes, a non-US person who doesn’t live in the US. If you’re not a US citizen/green-card holder, moving to Japan generally puts you in this bucket.
- FATCA (in force since 2014): the law that makes non-US institutions report US-linked accounts. The flip side is that US firms holding customers who live abroad take on compliance cost — which is a big reason many of them quietly push non-residents away.
- Liquidating Only: the account stays open, but new purchases and dividend reinvestment (DRIP) are switched off. You can sell and withdraw, nothing else. This is the “I kept my account but can’t actually use it” state, and it’s the one that surprises people.
So the question isn’t only “does the account survive?” It’s a two-parter: does it survive, and is it still an account you can move money inside of?
The four brokers, side by side
Everything here is “depends on the firm, the account, and the timing.” Do not treat it as gospel — confirm with your own account number. But the shape of it:
| Schwab | Fidelity | Vanguard | IBKR | |
|---|---|---|---|---|
| Keep existing account | Mixed reports (kept / closed) | Relatively keep-able | Strictest (restrictions & closures reported) | Japan residents move to the Japan entity (IBSJ) |
| New buys | Reports of blocks after address change | Often liquidate-only | May eventually push you to sell & wire out | US-ETF buys reported via IBSJ (verify) |
| Hold / sell / dividends | Sometimes OK | Usually can continue | Gradually squeezed | OK after moving to IBSJ |
| US address required | Effectively yes (no new accounts) | Effectively yes | Doesn’t really save you | Japan address is fine on IBSJ |
| 2FA (US phone) | Usually needed | Usually needed | Usually needed | Works with a Japan number (IBSJ) |
| Ease of transfer out | ACATS to another firm | ACATS | ACATS | Good landing spot (confirm IBSJ intake) |
A note on each:
Schwab — the trap is confusing “new account” with “existing account.” Schwab International (the UK entity) officially lists Japan as a restricted country for opening new accounts. What happens to an existing Schwab US account after you move is a separate question, and there are reports on both sides — buys getting blocked after an address change, and accounts simply continuing.
Fidelity — holding, selling, and receiving dividends on existing positions often continues, but changing your address to a foreign country has moved some people to liquidate-only. Fidelity documents the foreign-status update process on its site.
Vanguard — the consensus is that it’s the strictest of the four. The specific “you’ll get a closure notice 6–12 months after changing your address” claim is user-reported, not something I could source to a primary document, so I won’t state it as fact. The safe read: Vanguard doesn’t assume non-resident continuity — plan an exit early.
IBKR — globally it covers 200+ countries, but a Japan resident generally has to move from IBKR US to its Japan entity, IBSJ (a locally registered broker). IBSJ reportedly handles US-ETF purchases, but that’s a verify-it-yourself point, not a promise.
Is “just keep a US address” actually safe?
Short answer from my research: you can delay, but you can’t reliably avoid. And faking it carries its own risk.
The triggers people report aren’t only the mailing address:
- Changing to a foreign address (the big one)
- Repeatedly logging in from a foreign IP
- Contacting support from a foreign phone number
A parent’s address or a mail-forwarding service “keeps” an address, but your login IP and phone give away the reality. And maintaining a fake US address puts FATCA and US-tax compliance risk squarely on you. Old grandfathered accounts do quietly persist for some people — but firms have generally tightened since around 2021, so it’s a bet with worsening odds.
The sleeper problem: your US phone number and 2FA
Even if the account survives, it’s useless if you can’t log in. Most US brokerages text your two-factor code by SMS, so the day your US number dies, you’re locked out.
| Option | Monthly | What it does | Watch out for |
|---|---|---|---|
| Google Voice | Free | Keeps a US number for free | Must be activated before you leave (you can’t get one from abroad). Some institutions reject it as VoIP for 2FA |
| Tello (MVNO) | ~$5 | Physical SIM/eSIM keeps a real US number; reported to work reliably for 2FA | Paid; a small monthly cost |
Which institutions reject VoIP isn’t published, so it’s a verify item — but securing one way to receive 2FA on a real US number before you leave is, in my view, worth paying for. Five dollars a month to protect your login is cheap insurance. Tello is the low-cost carrier I’d point people to for keeping a real US number alive — it runs on a major US network, so 2FA texts actually arrive. The same 2FA problem hits your US credit cards too, so plan them together.
(Full disclosure: the Tello links here are a referral link — you and I each get $10 in Tello credit if you sign up through it. I mention Tello because it’s the option I’d actually use for keeping a US number after leaving.)
Sell before you go, or hold? A decision grid
This is the part that kept me up. Split it by situation:
| Your situation | Lean toward | Why |
|---|---|---|
| Small unrealized gains / worried about restrictions | Consider selling before you go | Kills the liquidate-only and forced-cash-out risk up front |
| Large gains you want to hold long-term | Keep + secure a landing spot (IBSJ etc.) | Selling triggers Japan-side tax; if you want to hold, build the receiving account first |
| You’re a US citizen / green-card holder | Talk to a cross-border tax pro first | You stay US-taxable; PFIC rules make Japanese mutual funds and NISA a trap, and the sell/hold math is genuinely different for you |
Two tax notes for non-US persons (NRAs): capital gains on US stocks are generally not US-taxed for an NRA, but once you’re a Japan resident they’re taxable in Japan. Dividends are reduced from 30% to 10% withholding if you’ve filed a W-8BEN, under the US–Japan tax treaty. FX gains can also come into play, so if the numbers are large, get advice.
And if you’re a US person: this flips. Your Japanese mutual funds and NISA can become a PFIC nightmare on your US return — the mirror image of the problem Japanese expats hit going the other way. That alone is worth a consult.
If the answer is no: build an escape hatch with ACATS
If keeping it isn’t an option, or you get pushed to liquidate-only, the exit is ACATS (Automated Customer Account Transfer Service) — the system that moves stocks, ETFs, and cash between US brokers electronically (Schwab/Fidelity/Vanguard → IBKR, for example).
- What you’ll need: source account number, name, account type, tax ID
- Timing: usually 3–5 business days
The key is order. If an account gets closed, your assets are force-liquidated to cash, and then you’re stuck trying to wire it somewhere — the worst time to be scrambling is after the closure notice. Open the destination (IBKR, or IBSJ once you’re in Japan) first, then transfer. Whether IBSJ accepts ACATS transfers isn’t clearly published, so confirm it — that’s on my own to-do list before I move.
So how do I decide (for what it’s worth)
Honestly, I haven’t made the final call myself. I got burned by PFIC once, so I never want to hold mutual funds again, and I hate the idea of juggling three brokers. But my priority order is set:
- Secure a real US phone number before leaving (for 2FA)
- Ask Schwab/Fidelity, with my account number, exactly how they’ll treat my account after I move
- Confirm IBSJ’s account requirements and whether it accepts ACATS
Get the order right and you avoid the worst-case chain (closure → forced cash-out → stuck wiring money). That’s my conclusion for now.
When to call a professional
If your holdings are large enough that an exit tax could apply, if you’re a US citizen or green-card holder with a complicated return, or if your unrealized gains are big enough that timing swings the tax bill — don’t wing it. Talk to a tax professional who actually does cross-border US–Japan work — an expat-focused firm like Taxes for Expats is one place to start if you don’t already have someone. (That’s a referral link — you get $25 off your first filing through it, and it credits this site if you sign up; compare providers and pick who fits.) This article is my own research, not investment or tax advice. Rules vary by firm, account, and timing, so confirm everything against each firm’s official pages and a professional before you act.
FAQ
Will my US brokerage close immediately when I move to Japan?
It depends on the firm. Immediate closure isn’t the norm — the more common outcome is “you can hold, but no new buys” (liquidate-only). Vanguard is relatively strict; IBKR handles it by moving you to its Japan entity, IBSJ. Confirm with your own account number.
Can I keep the account by keeping a US address at a relative’s place or a forwarding service?
You can delay, but not reliably avoid it. Foreign-IP logins and foreign-phone contact are also triggers, and maintaining a fake address puts FATCA and US-tax risk on you. Don’t over-trust address maintenance as a “safe” move.
What tax do I owe if I sell US stocks after moving to Japan?
For a non-resident alien, US capital gains on US stocks are generally not US-taxed, but once you’re a Japan resident they’re taxable in Japan. Dividends drop from 30% to 10% withholding with a W-8BEN on file. FX gains can be involved too, so if the amounts are large, check with a tax professional. US citizens/green-card holders: your situation is different — you remain US-taxable — so get cross-border advice.