When you see how powerful investing can be, you’ll never leave all of your savings to waste away in a savings account again!
How Robinhood works
Robinhood is a commission-free, app-based investing platform. Users can buy stocks (including fractional shares), ETFs, options, and some cryptocurrencies. Users create and fund their accounts and can start trading.
Unfortunately, you cannot use Robinhood without an SSN; an ITIN is not accepted, which means you must be a U.S. citizen or permanent resident to use the app.
How to trade stocks without an SSN
Buying and selling stocks with an ITIN is possible. Legal and undocumented immigrants are free to invest in the stock market, and no Social Security Number is required; that is a requirement Robinhood implemented as a company, but it was not legally required to do so.
You can open a brokerage account using an ITIN with companies including Charles Schwab, Fidelity, and Vanguard. Users can create an account, fund it with money from a checking or savings account, and start buying and selling stocks within a business day or two.
Upwardli and you
Investing is only one aspect of American personal finance. There are so many things to learn as a newly arrived-resident! What is a credit score, and why are they so important in the U.S.? What do all the investing terms mean? What is the average cost of living in the U.S.?
It’s a lot! That’s where Upwardli comes in! Upwardli was created to help those new to the country navigate and thrive in the personal finance system. We have created dozens of resources that can help you answer all the questions above and lots more, and we can help you build your credit score, something that will make many aspects of your financial life easier. Upwardli is here for you during every step of your financial journey!
As someone deeply entrenched in financial literacy and the intricacies of the American financial system, I can attest to the importance of understanding credit, investing, and personal finance, especially for those new to the U.S. The American financial landscape is multifaceted, and navigating it successfully requires both knowledge and resources.
Firstly, the concept of an ITIN (Individual Taxpayer Identification Number) is crucial. For those not familiar, an ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who are obligated to pay U.S. taxes but who do not have, and are not eligible to obtain, a Social Security Number (SSN). This is often the case for non-residents or undocumented immigrants who earn income in the U.S.
Building Credit with an ITIN:
Establishing a credit history is vital for financial stability in the U.S. A credit score reflects your creditworthiness and is a significant factor when applying for loans, credit cards, or even renting an apartment. With an ITIN, individuals can build their credit profile by:
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Opening a Credit Account: Many financial institutions, including certain banks and credit unions, allow individuals to open credit accounts using an ITIN.
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Secured Credit Cards: These cards require a security deposit, making them accessible to those with limited or no credit history. They function similarly to regular credit cards and can help build credit when used responsibly.
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Credit Builder Loans: Some institutions offer credit builder loans designed to help individuals establish or improve their credit scores. These loans involve borrowing a small amount, which is then repaid in installments. Once the loan is paid off, the borrower receives the accumulated funds.
Investing with an ITIN:
While platforms like Robinhood may have restrictions concerning ITINs, several reputable brokerage firms, including Charles Schwab, Fidelity, and Vanguard, welcome investors with ITINs. These firms offer a range of investment products, from stocks and ETFs to mutual funds, allowing individuals to diversify their portfolios and work towards their financial goals.
Upwardli's Role:
Upwardli's mission to assist newcomers in navigating the American financial system is commendable. Understanding credit scores, investment terms, and the cost of living are fundamental to financial success in the U.S. Their resources and guidance can be invaluable, providing newcomers with the knowledge and confidence to make informed financial decisions and build a secure future.
In conclusion, while the U.S. financial system may seem daunting, especially for newcomers, with the right resources and guidance, anyone can establish a solid financial foundation. Whether it's building credit with an ITIN or investing in the stock market, taking proactive steps towards financial literacy and empowerment is key.
