Best Brokerage for Expats & Immigrants Investing in France: Why I Recommend Interactive Brokers

Moving to France is an exciting adventure, but navigating the financial landscape as an expat or immigrant can be challenging—especially when it comes to investing. One of the most common questions I receive from newcomers to France is: "What's the best option for investing in the stock market as a resident of France?"

After extensive research and personal experience, my answer is clear: Interactive Brokers.

Why Interactive Brokers is the Best Choice for France-Based Expats

Interactive Brokers stands out as the premier brokerage option for expats and immigrants living in France for several compelling reasons:

1. Low-Cost Access to Global Markets

Interactive Brokers provides affordable access to both European and North American stock markets. Whether you want to invest in CAC 40 companies, S&P 500 stocks, or diversify across multiple continents, Interactive Brokers makes it simple and cost-effective.

2. No-Fee Foreign Exchange (FX)

One of the standout features of Interactive Brokers is their no-fee FX service. Converting USD to EUR (or vice versa) comes without the hefty fees that many traditional banks and brokerages charge. This is a huge advantage for expats who regularly deal with multiple currencies.

3. Accepts US Persons

If you're a US citizen or green card holder living in France, finding a brokerage that will accept you can be surprisingly difficult due to FATCA regulations and reporting requirements. Interactive Brokers accepts US persons, making it one of the few viable options for American expats.

Important Limitations to Know Before Opening an Account

While Interactive Brokers is my top recommendation, there are some important restrictions and considerations to keep in mind:

FX-Only Usage Will Get You Removed

If you use your Interactive Brokers account solely for currency exchanges (e.g., converting USD to EUR without maintaining any investments), the platform will likely close your account. Interactive Brokers is designed for investors, not as a currency exchange service. That said, Interactive Brokers does provide the best FX rates with nearly zero fees, so if you use Interactive Brokers for your investments, you can benefit from trading FX with very low fees.

No US Mutual Funds for EU Residents

Due to EU regulations, Interactive Brokers does not allow EU residents to hold US mutual funds. This is a regulatory limitation, not a platform choice. This was a bit frustration to me given my belief in holding low-cost index mutual funds as a long-term investor.

US ETFs Require Professional MiFID Status

Here's where things get a bit tricky. As an EU resident, you cannot purchase US-based ETFs unless you have Professional MiFID Category status.

I personally have this status due to my trading history and professional background, which grants me access to US ETFs. However, most retail investors won't qualify.

The good news? Even without Professional MiFID status, you can still invest in:

• US-based individual stocks

• US bonds

• European-domiciled ETFs (including many that track US indices)

Critical Warning for US Persons: Avoid Non-US Index Funds (PFIC Issues)

If you are a US citizen or green card holder, I strongly advise against investing in any index funds or ETFs domiciled outside of the United States. Here's why:

The IRS classifies most foreign mutual funds and ETFs as Passive Foreign Investment Companies (PFICs). Holding PFICs triggers extremely punitive tax treatment, including:

• Excess distribution rules that can tax gains at the highest ordinary income rate

• Interest charges on deemed tax deferrals

• Complex annual reporting requirements (Form 8621)

• No favorable long-term capital gains rates

Even European-domiciled ETFs that simply track US indices (like an Ireland-based S&P 500 ETF) are considered PFICs by the IRS. The paperwork alone can cost hundreds of dollars in tax preparation fees, and the tax consequences can significantly erode your returns.

Bottom line for US persons: Stick to individual stocks and bonds to avoid the PFIC nightmare.

Interactive Brokers Referral Bonus: Get Up to $1,000

Interactive Brokers currently offers a referral bonus program that rewards new account holders:

• Bonus: 1% of your initial deposit

• Minimum deposit: $10,000

• Maximum bonus: $1,000

• Bonus format: IBKR shares

• Duration: Funds must remain in Interactive Brokers for 1 year to earn the bonus

A Word of Caution

Since the bonus is paid in IBKR stock rather than cash, I wouldn't recommend opening an account solely to claim the bonus. However, if you're already planning to invest through Interactive Brokers, it's a nice perk. France and USA residents are eligible for this bonus, but not all countries are eligible.

You can find my referral link here

What About US-Based Brokerages?

If you're still a US resident, I actually recommend other platforms over Interactive Brokers:

• Charles Schwab

• Fidelity

• Vanguard

These brokerages offer excellent services, user-friendly platforms, and competitive pricing for US-based investors. However, once you become an EU resident, Interactive Brokers becomes the superior choice due to its global accessibility and willingness to work with international clients.

Ready to Start Investing in France?

If you're an expat or immigrant ready to take control of your financial future while living in France, Interactive Brokers is the platform I trust and use myself.

👉 Open an Interactive Brokers Account & Get Your 1% Bonus

By using my referral link, you'll receive the 1% bonus in IBKR shares on qualifying deposits, and you'll be supporting content like this article.

Final Thoughts

Investing as an expat in France doesn't have to be complicated. Interactive Brokers offers the flexibility, low costs, and global market access that most France-based investors need. Just be aware of the limitations around US mutual funds and ETFs, and if you're a US person, be especially cautious about PFIC rules—stick to US-domiciled investments to avoid a tax headache.

Have questions about the account setup process or planning a move to France? If you'd like to learn more about cross-border finances and how to navigate investing as an expat, feel free to reach out to me at mybestmoneylife@gmail.com to set up a call.

Disclaimer: This article contains a referral link. I may receive compensation if you open an account through the link provided. This does not affect my recommendation—I genuinely use and recommend Interactive Brokers for expats in France. Always do your own research and consider consulting a financial advisor or tax professional before making investment decisions.