Firstrade vs IBKR vs Schwab International: Choosing an Overseas Broker as a Non-U.S. Resident (Fees, Withdrawals, Interest and Inheritance)

When Taiwanese investors buy U.S. stocks through an overseas broker, the three most often compared are Firstrade, IBKR (Interactive Brokers) and Schwab International (Charles Schwab International). All three accept Taiwan residents, and all three keep the cost of trading U.S. ETFs low. The real differences are in withdrawal fees, interest on idle cash, the range of products you can buy, and the limits on inheritance.

The short answer, based on official information as of 15 October 2026: if you only buy U.S. stocks and U.S. ETFs and trade rarely, Firstrade and Schwab charge zero commission on online trades; if you keep more USD cash at the broker or want markets outside the U.S. or Irish ETFs, IBKR has the edge on interest and product range, and its two free withdrawals a month also work out cheaper. None of the three lets you (or is confirmed to let you) name a beneficiary in advance on a non-U.S. account, so inheritance is a weakness they share.

This post is based on the three brokers’ official pages as checked on 15 October 2026. Fees and interest rates change, so check the broker’s current announcements before opening an account. This post is not investment advice and does not recommend opening an account with any particular broker.

The three brokers in one table

Sources are given in each section below.

Account eligibility: all three accept Taiwan residents

• Firstrade: international accounts are for people who are not U.S. citizens or permanent residents and have no U.S. Social Security number. Applicants must live in one of 27 eligible regions, and Taiwan is on the list. International clients can open only individual accounts, not joint accounts. You need the international account application, a W-8BEN and a valid passport (Firstrade).
• IBKR: residents of Asia other than India, Hong Kong and Japan open accounts with Interactive Brokers LLC in the U.S., and Taiwan residents fall into this group (IBKR). IBKR Lite (the zero-commission plan) is for U.S. residents only, so Taiwanese investors use IBKR Pro.
• Schwab International: Schwab has not published a formal country list, but it has application steps for Taiwan residents: you can use a Taiwan national ID card instead of a passport and household registration records as proof of residence (Schwab). Individual, joint and trust accounts are available.

Schwab’s US$25,000 minimum

You will often read online that Schwab International needs US$25,000 to open an account. According to Schwab’s April 2026 pricing guide, the minimum deposit for a Schwab One International account is US$0, and the account page also says there is no minimum deposit. But a footnote on Schwab’s investment products page still says “a minimum deposit is required to open an international account, please contact Schwab,” without giving an amount. The two pages do not match, so it is worth asking Schwab directly before you apply.

Trading costs: zero commission at Firstrade and Schwab, per share at IBKR

• Firstrade: online stock, ETF and options trades are all free; the only charge is the U.S. Securities and Exchange Commission fee on sales (Firstrade pricing).
• Schwab: online stock and ETF trades are free; options are US$0.65 per contract. Irish-domiciled UCITS ETFs cannot be bought online: orders go through a representative at US$50 each, and the currency conversion markup is up to 3% (Schwab pricing).
• IBKR: the Fixed plan charges US$0.005 per share, with a minimum of US$1 and a maximum of 1% of trade value per order; the Tiered plan starts at US$0.0035 per share plus exchange and regulatory fees (IBKR pricing). A US$1,000 ETF purchase usually costs just the US$1 minimum.

If you only buy U.S. ETFs once a month as a regular investment, Firstrade and Schwab save you commissions on the order of a dozen or so U.S. dollars a year. If you want Irish-domiciled ETFs or stocks outside the U.S., IBKR offers a more complete range of products.

Deposits and withdrawals

None of the three charges for incoming transfers, but the bank in Taiwan and intermediary banks do charge fees. For the actual cost of wiring money from Taiwan, see “The real cost of wiring money to a U.S. broker.”

In October 2026, IBKR’s official pages (in English and Chinese) say two free withdrawals a month. Older IBKR help pages and some reviews still say one, and I could not find an announcement dating the change.

Interest on idle USD

IBKR’s rate moves with the benchmark rate: it was 3.13% on 7 October 2026 and 3.38% on 15 October. If you keep USD at the broker while waiting to invest, the gap in interest matters far more than trading commissions. Short-term Treasury ETFs are another option; see “IB01 vs SGOV.”

Tax forms and dividend reinvestment

• W-8BEN: all three require it. It stays valid for the year it is signed plus three full calendar years. Firstrade says that once it expires, 30% is withheld, 24% is withheld from sale proceeds, and trading is restricted (Firstrade).
• Form 1042-S: non-U.S. persons receive a 1042-S, not a 1099. Firstrade says the 1042-S is usually issued by 15 March, and refunds of over-withheld tax through reclassification come 3 to 6 months after the 1042-S is issued (Firstrade). For dividend withholding tax and the exemption for bond ETFs, see “30% U.S. dividend withholding tax.”
• Dividend reinvestment: free at Firstrade, for U.S. stocks priced at US$4 or more, among others (Firstrade). IBKR offers it to IB LLC clients but only mentions common and preferred shares listed in the U.S. and Canada, charges normal commissions, and does not say whether ETFs qualify (IBKR). I could not find an official statement on whether Schwab international accounts can use it.

Inheritance: a weakness all three share

U.S. brokers commonly use TOD (Transfer on Death) so account holders can name a beneficiary in advance, and the assets pass directly to that person at death. Non-U.S. residents mostly cannot use it:

• Schwab: the beneficiary plan agreement states that it does not apply to accounts whose primary residence is outside the U.S.
• IBKR: TOD is offered only on individual accounts of U.S. residents.
• Firstrade: an older 2021 help article says international accounts cannot name a beneficiary; the current TOD form only says it is “not available to residents of all regions.”

So your family will have to go through a probate process, and if U.S.-situated property exceeds US$60,000, they will also have to deal with U.S. estate tax. For the process and documents, see “How the US$60,000 U.S. estate tax threshold works.”

How to choose

Based on the information above, you can match it against how you invest:

For a total cost comparison between Taiwan’s sub-brokerage service and overseas brokers, see “Sub-brokerage vs overseas brokers.”

FAQ

Can Taiwan residents open accounts with Firstrade, IBKR and Schwab International?

All three accept them. Firstrade's international accounts are open to 27 regions, and Taiwan is on the list; IBKR opens accounts for Taiwan residents through Interactive Brokers LLC in the U.S.; Schwab has not published a formal country list, but it has application steps for Taiwan residents, who can use their national ID card and household registration records.

Does Schwab International still require US$25,000 to open an account?

According to Schwab's April 2026 pricing guide, the minimum deposit for a Schwab One International account is US$0, and the account page also says there is no minimum deposit. But a footnote on another Schwab page still says a minimum deposit is required to open an account and to contact Schwab, without giving an amount; it is worth asking again before you apply.

What do the three brokers charge to withdraw money to Taiwan?

According to the official pages on 15 October 2026: IBKR's first two withdrawals each month are free, and after that a USD wire costs US$10 each; Firstrade charges US$25 for an international wire; Schwab charges US$25 for a wire, or US$15 if requested online. Intermediary and receiving bank fees are extra.

Does USD cash held at the broker earn interest?

At IBKR, the first US$10,000 of USD cash earns no interest, and the portion above it earned 3.38% a year on 15 October 2026; the rate is reduced when net asset value is under US$100,000. Firstrade pays 0.15% on cash. Schwab's cash options for overseas clients depend on the region, and I could not find a published rate.

Which broker lets you name a beneficiary in advance?

None of the three does, or it is unconfirmed. Schwab's beneficiary plan states that it does not apply to accounts whose primary residence is outside the U.S.; IBKR offers TOD only to U.S. residents; an older Firstrade article says international accounts cannot name a beneficiary, and the current form only says it is not available in every region.