Fidelity & Schwab Accounts When You Move to France

You've spent months planning your move to France. Visa sorted, apartment hunted, boxes half-packed. Then you think to update your Fidelity or Schwab account to your new French address, and a few weeks later a letter arrives that you were absolutely not expecting. Your account is being restricted. Trading is suspended. Or worse: you have 30 to 60 days to transfer your assets somewhere else.

This is one of the most jarring financial surprises Americans face when moving to France, and it almost never comes up during the planning stage. US brokerages are not legally required to serve clients who live outside the United States. Most major platforms, including Fidelity and Schwab, have compliance policies that restrict trading or close accounts once they identify a French residential address. The trigger is usually mundane: an address update. The consequences are real.

This article explains exactly why it happens, what the two biggest brokerages have done in practice, and which alternatives actually work for Americans living in France as legal residents. It does not constitute tax or investment advice. Your situation may differ, and a qualified cross-border tax professional is worth consulting before you make any major financial decisions.

Why US Brokerages Restrict Accounts When You Live in the EU

The root cause is regulatory, not commercial. US brokerages operate under US law. But the moment you live in France, you are also inside the European Union's regulatory perimeter. The EU's MiFID II framework (Markets in Financial Instruments Directive) requires that any firm actively providing investment services to EU residents hold appropriate EU-level authorizations. Most US brokerages have not obtained those authorizations, because the compliance cost and legal exposure simply are not worth it for a relatively small population of American expats.

FATCA (the Foreign Account Tax Compliance Act) adds another layer. Brokerages are required to identify and report accounts held by foreign residents. When a French residential address appears in their system, it triggers a compliance review. The firm must then decide whether it can legally continue serving that client under both US and EU rules. Most have concluded they cannot.

The result is restriction or closure. This is not a customer service decision and it is not negotiable through your branch manager. It is a regulatory compliance decision that affects Americans who move to any EU country, not just France. Understanding that the problem is structural helps you plan around it rather than fight it.

What Fidelity Does When You Declare a French Address

Among the brokerages that American expats in France contact most often, Fidelity is one of the more frequently reported cases. The pattern that emerges from documented expat experiences is that Fidelity typically restricts the account rather than closing it immediately: trading is suspended, meaning you can no longer buy or sell securities, but existing positions are generally allowed to remain. Some clients have received formal notices giving a defined timeframe before full account closure.

The key trigger, again, is the residential address. Updating your Fidelity account to a French address signals to their compliance systems that you have become a foreign resident. That typically initiates the restriction process within their internal review cycle. The timing and scope can vary depending on account type, but the direction is consistent.

For most investors, a "hold only" status is not a workable long-term arrangement. You cannot rebalance, cannot reinvest dividends, cannot make any tactical changes to your portfolio. And once the clock starts on account closure, you are managing a transfer under pressure.

Fidelity's international account policies have evolved over time, and what applied two years ago may not apply today. Before you update your address or make any changes, contact Fidelity directly and ask explicitly about their current policy for legal French residents. Get the answer in writing, and ask separately about each account type you hold, because taxable brokerage accounts, IRAs, and cash management accounts may be treated differently.

What Happened with Schwab and France

Schwab's situation has a specific historical chapter that many Americans discovered at the worst possible moment. Schwab previously operated dedicated international brokerage services designed for US citizens living abroad. In the early 2020s, Schwab announced it would exit international brokerage services for clients in a number of countries, France included. Clients were notified and given a window to transfer their assets to another institution.

The "Schwab international France pulled out" search that brings many people to this article reflects a real experience: account holders received notifications, scrambled to identify alternatives, and had to execute transfers under deadline. Some discovered this situation only after they had already moved.

If you currently hold a Schwab account and are planning a move to France, contact Schwab now to confirm the current status of your account and their policy for French residents. Do not assume continuity based on what was true when you last checked. The situation has been in flux, and what applies to one account type may not apply to another.

The broader lesson is this: "they'll probably be fine with it" is not a plan. Discovering that your brokerage cannot serve you from abroad is manageable if you find out six months before your move. It is a genuine crisis if you find out six weeks after arrival.

Your IRAs and 401(k)s: A Somewhat Different Story

Retirement accounts deserve a separate mention because many people conflate them with taxable brokerage accounts and worry more than necessary, or less than necessary, depending on the situation.

IRAs held at US custodians are generally more portable than taxable accounts from a brokerage policy standpoint. The IRS continues to recognize them regardless of where you live, and most custodians allow existing IRA holders to keep their accounts as non-US residents. You cannot continue making contributions if you have no US-sourced earned income, but you can typically hold and manage existing positions.

401(k) plans are employer-sponsored. If you leave your job to move to France, you will need to decide whether to leave the 401(k) in the plan, roll it into an IRA, or take a distribution. The brokerage restriction issue is more acute for taxable brokerage accounts than for retirement accounts, but the policies still vary by custodian.

The more important question with retirement accounts is not "can I keep it" but "how will it be taxed." The US-France income tax treaty has specific provisions governing how US retirement income and distributions are taxed, and the interaction between the IRS rules and France's tax authority is not always straightforward. This is an area where a cross-border CPA familiar with both systems is worth the fee. Our guide to retiring in France as an American covers the broader tax and visa picture for retirees, including the treaty framework.

The PFIC Problem: Why You Don't Want a French Investment Account Either

When Americans realize their US brokerage account is at risk, the instinctive response is sometimes: "I'll just open a French brokerage account and invest through that." This approach has a significant and underappreciated downside rooted in US tax law.

PFIC stands for Passive Foreign Investment Company. Under US tax rules, most foreign investment vehicles, including standard French and European ETFs and mutual funds, are classified as PFICs. The US tax treatment of PFIC gains is punitive by design: excess distributions and gains are taxed at the highest applicable ordinary income rate, plus retroactive interest charges. Filing requirements involve Form 8621 and can be complex and expensive to prepare.

The practical consequence: a US citizen living in France who invests in standard French or European funds will face both French taxation and harsh US PFIC treatment on the same investments. Most US cross-border tax professionals actively advise against holding PFICs whenever there is a workable alternative.

This is exactly why keeping a US-domiciled brokerage account matters for Americans abroad. When you invest through a US account in US-listed securities (US ETFs, US stocks, US bonds), those investments are not PFICs. They are taxed under normal US capital gains rules, declared to France under the treaty framework, and not subject to the PFIC regime. Losing access to a US brokerage account is not just an inconvenience. It can push you into a more expensive and complex tax situation.

Interactive Brokers: The Most Practical Alternative

Interactive Brokers, widely known as IBKR, is the brokerage most consistently recommended by American expats in France, and the reason is structural rather than promotional. IBKR holds regulatory authorizations in the United States and across multiple EU jurisdictions. That means it can legally serve US clients who live in France without the compliance conflict that forces other US brokerages to restrict or exit.

For a US citizen living in France, the standard setup is a US-registered IBKR account. IBKR issues accounts to US citizens regardless of country of residence. You hold US-listed securities through a US account, maintain US tax reporting, and avoid the PFIC problem entirely. Your French address does not trigger account closure because IBKR has specifically built the infrastructure to accommodate internationally-resident clients.

IBKR is not the most beginner-friendly platform. It is feature-dense and takes some time to learn. But it works reliably for Americans abroad in a way that Fidelity and Schwab currently do not, and that reliability matters when your investment portfolio is involved.

The sequencing matters significantly. The recommended approach is: open your IBKR account while you still have a US residential address, initiate an ACATS transfer (Automated Customer Account Transfer) from your current brokerage to IBKR, let the transfer complete, and only then update your residential address at IBKR. ACATS transfers move securities in-kind, meaning your shares transfer directly without triggering a sale and the associated tax event. This is meaningfully better than being forced to liquidate and reconstruct your portfolio.

Other Brokerages Worth Knowing About

IBKR is the clearest option, but a small number of other US brokerages have been used by Americans in France. The landscape shifts, so treat this as a starting point for your own research rather than a definitive list.

Tastytrade (part of the tastylive group) has been reported as an option by some expats, particularly those who trade options. Their current policy for clients residing in France should be confirmed directly before you open or transfer assets.

TD Ameritrade no longer operates independently. It was fully integrated into Schwab in 2023. If you held a TD Ameritrade account, your assets are now at Schwab and subject to the same Schwab policies.

The most important question to ask any brokerage is direct: "I am a US citizen and will be living in France as a legal resident. Can I maintain my existing account and continue trading US-listed securities from France?" Ask specifically about your account types (taxable, IRA, etc.) and ask for their response in writing.

The US Tax Side: FBAR, Form 8938, and the Treaty

Moving to France does not reduce your US tax obligations. The IRS is clear that US citizens are taxed on worldwide income regardless of where they live. Investment income from your US brokerage account continues to be reported on your US tax return as normal. You also report it in France, but the US-France tax treaty provides mechanisms to avoid double taxation on most income categories.

There are two additional US reporting requirements that many Americans discover only after they have already moved:

The FBAR (FinCEN Form 114) is required if the combined balance of your foreign financial accounts exceeds $10,000 at any point during the calendar year. It is filed separately from your tax return using the FinCEN BSA E-Filing portal, with a deadline of April 15 and an automatic extension to October 15. Note that if you keep your investments in a US-based account like IBKR, that account is not a foreign account and generally does not trigger FBAR. The reporting obligation applies primarily to accounts held at non-US institutions.

Form 8938 (Statement of Specified Foreign Financial Assets) is filed with your annual tax return if your total specified foreign financial assets exceed certain thresholds, which vary by filing status and whether you live inside or outside the United States. As with the FBAR, US-registered accounts at US brokerages generally do not create a Form 8938 obligation.

Keeping your investments at a US institution like IBKR therefore simplifies your US reporting obligations as well as your investment access. That is not an accident: it is one of the genuine benefits of the IBKR-based approach.

For the broader setup of your first year as a French tax resident, EasyFranceNow's First-Year Tax Orientation service helps you build a calendar, prepare your documentation, and connect with licensed cross-border professionals for the parts that require a CPA. It is especially useful if you have investment accounts, US retirement income, or a situation that spans both countries.

Common Mistakes to Avoid

Updating your brokerage address before you have a plan. The address update is the trigger. Before you change anything at Fidelity or Schwab, have your IBKR account open and your ACATS transfer initiated. Move the assets first, then update the address at the new institution.

Treating the problem as urgent only after it becomes one. The Americans who handle this best are the ones who investigate brokerage policies six to twelve months before their move date, not the ones scrambling to open a new account two weeks before departure.

Using a family member's US address indefinitely at your brokerage without disclosing your French residency. Some expats do this to avoid triggering account restrictions. It may seem harmless, but providing a false residential address to a financial institution creates compliance risk that is genuinely not worth it, especially in an era when brokerages can flag foreign IP addresses during logins.

Buying French or European funds because they seem convenient. Standard French ETFs and mutual funds are PFICs from the IRS's perspective. The tax consequences can be severe. Get professional tax advice before opening any non-US investment account or purchasing any non-US fund.

Confusing brokerage accounts with French banking. You will need a French bank account for daily life, direct debits, and rent payments. That is a separate step from managing your US investments, and the best FATCA-friendly options for everyday French banking are covered in our guide to French bank accounts for Americans.

Practical Checklist

Before your move:

• Contact Fidelity and/or Schwab and ask directly about their current policy for legal French residents, in writing

• Open an IBKR account while you still have a US residential address

• Initiate an ACATS in-kind transfer from your current brokerage to IBKR before updating your address anywhere

• Confirm your IRA custodian's policy for non-resident account holders separately from your taxable account

• Identify a cross-border CPA who works with Americans in France before your first French tax year begins

• Read the US-France tax treaty provisions relevant to your income and investment types

After arrival:

• Update your residential address at IBKR (which expects and accommodates international clients)

• Note your FBAR deadline: April 15 with an automatic extension to October 15

• Confirm with a tax professional whether any of your accounts trigger FBAR or Form 8938 obligations

• Do not purchase European ETFs or non-US mutual funds without professional tax advice first

• Open a French bank account for daily life separately from your US brokerage setup: see our first month in France checklist for the full sequencing

When to Get Help

The brokerage transition itself, opening IBKR and initiating an ACATS transfer, is something most Americans can handle on their own if they plan ahead. IBKR has an English-language interface, and the transfer process is documented online. The key is doing it before you are under deadline pressure.

The tax side is where professional support is genuinely worth it. The combination of French tax residency, US citizenship-based worldwide taxation, the US-France treaty, PFIC rules, and retirement account treatment creates enough complexity that a cross-border CPA will typically save you more than their fee. This is especially true in your first year, when you are simultaneously becoming a French tax resident and maintaining your US filing obligations.

EasyFranceNow's First-Year Tax Orientation service is designed exactly for this phase. It helps you build a practical calendar, prepare documentation in the right format, and connect with licensed professionals when your situation requires actual tax advice or filing support. It does not replace a CPA, but it gets you organized and deadline-aware before the first French tax season catches you off guard.

FAQ

Will Fidelity really close my Fidelity or Schwab account because I live in France?

Policies vary by firm and have changed over time, so there is no single universal answer. Many American expats in France have reported that Fidelity restricts trading once a French address is on file, meaning they can hold existing positions but cannot buy or sell. Some have received formal closure notices with a defined timeframe to transfer. Schwab separately exited international brokerage services for clients in several countries including France in the early 2020s. The safest approach in 2026 is to contact each brokerage directly before you move and ask explicitly about their current policy for legal French residents, specifying each account type you hold. Do not assume that what was true a year ago still applies.

Can I keep my US brokerage account at Interactive Brokers while living in France?

For most Americans living in France, yes. IBKR operates as a US-registered broker and also holds European regulatory authorizations, which means it can legally serve US clients living in France without the compliance conflict that causes other brokerages to exit. You hold a US-registered account and invest in US-listed securities, which avoids the PFIC tax problem associated with French or European investment funds. IBKR's platform is more complex than Fidelity or Schwab, but it works reliably for Americans abroad. The recommended sequence is to open and fund your IBKR account and complete the ACATS transfer before you update your residential address at your current brokerage.

Do I still owe US taxes on my US investment accounts if I live in France?

Yes. The United States taxes its citizens on worldwide income regardless of where they live, so capital gains, dividends, and other investment income from your US brokerage account are still reported on your US tax return. You also declare this income in France, but the US-France income tax treaty provides mechanisms to prevent double taxation on most categories of investment income. In practice, many Americans in France receive a credit in one country for taxes paid in the other, depending on the income type and the applicable treaty provision. This is not a simple calculation, and a cross-border CPA is worth consulting before your first French tax declaration.

What do I do if I already moved to France and my account is now restricted?

Open an IBKR account as soon as possible and request an ACATS in-kind transfer from your restricted brokerage. An in-kind ACATS transfer moves your securities directly without forcing a sale, which means you avoid triggering a taxable event on your entire portfolio during the transfer. The process typically takes five to seven business days once initiated, though timelines can vary. If your account has already been fully closed and assets liquidated, you will need to address the realized capital gains on your US tax return and then rebuild your portfolio at IBKR. In that scenario, a cross-border CPA can help you assess the tax consequences and plan the most efficient path forward. Do not delay: a restricted account that is still holding your positions gives you more options than one that has been closed.

Conclusion

Your Fidelity and Schwab accounts are not automatically safe simply because they are US accounts. The moment you declare a French residential address, you trigger compliance reviews that lead most major US brokerages to restrict or close those accounts. The regulatory reason is real: serving clients in France requires EU-level authorizations that most US firms have not pursued.

The practical solution is to plan early. Open an IBKR account before your move, transfer your assets via ACATS, and update your address at IBKR once you are on the ground in France. Keep your portfolio in US-listed securities to avoid the PFIC problem. Work with a cross-border tax professional to make sure your US and French obligations are managed in parallel from the start.

If you are still in the planning phase and want to make sure your financial, tax, and admin setup is sequenced correctly alongside your visa and housing, EasyFranceNow is here to help you map the whole picture and connect you with the right professionals at the right time.