can you trade international stocks on etrade? Guide

Can you trade international stocks on E*TRADE?

Can you trade international stocks on ETRADE? Yes — you can gain exposure to many foreign companies in an ETRADE account, but most access comes indirectly (ADRs, OTC foreign ordinary shares, and U.S.-listed international ETFs) rather than by seamless online trading on most foreign home exchanges. Historically E*TRADE piloted broader direct market access, but today direct foreign-exchange trading is limited and commonly handled via phone/broker-assisted orders or special arrangements.

In this guide you will get a clear, step-by-step picture of what it means to trade international stocks on ETRADE: what types of international exposure are available, how to find and place trades, relevant fees, tax and settlement considerations, practical examples, and alternative platforms if you require direct home-market access. The goal is a practical, beginner-friendly reference that helps you decide whether ETRADE meets your international investing needs and how to proceed safely.

Overview and short answer

Practical short answer: can you trade international stocks on E*TRADE? Yes — but mainly through:

• American Depositary Receipts (ADRs) and U.S.-listed receipts that represent foreign companies and trade in U.S. dollars on U.S. exchanges.
• Over-the-counter (OTC) listings of foreign ordinary shares (sometimes with tickers ending in “F” or special OTC symbols).
• U.S.-listed international and global ETFs and mutual funds that provide diversified foreign exposure.
• Limited broker-assisted or phone orders placed for certain foreign exchanges on a best-efforts basis, which may involve heightened fees and currency handling.

E*TRADE does not generally provide broad, seamless direct online trading on most foreign home exchanges the way specialized global brokers do. Where direct home-exchange trading exists, it is typically limited, may be legacy or special-service based, and often requires additional fees, currency conversion, and manual processing.

History of E*TRADE’s international trading capability

Early direct-access platform (2007 launch)

As of February 20, 2007, according to Reuters and CNBC, E*TRADE launched a pilot global trading platform that allowed customers access to a handful of foreign exchanges and local-currency trading on a trial basis. The pilot aimed to let retail customers trade in local markets and currencies directly from their U.S. accounts.

Changes since then and discontinuation of broader direct service

Over the years, ETRADE’s broader direct-global trading offering was scaled back. Reports and broker comparison reviews indicate that ETRADE at one time offered wider direct international trading access but later discontinued or limited the full global direct-service product. The practical result for most retail clients today is that E*TRADE emphasizes ADRs, OTC access, and U.S.-listed ETFs for international exposure, while direct trades on many home exchanges require broker-assisted arrangements or are not supported online.

Ways to trade international stocks via E*TRADE

Below are the main pathways available to investors who want exposure to foreign companies in an E*TRADE account. Each path has trade-offs in liquidity, fees, tax treatment, and operational complexity.

American Depositary Receipts (ADRs)

ADRs are U.S.-listed, dollar-denominated receipts issued by U.S. banks that represent shares of a foreign company. ADRs trade on U.S. exchanges like ordinary U.S. stocks and are one of the most straightforward ways to purchase foreign company exposure through ETRADE. When you buy an ADR on ETRADE, the order is placed and executed like any U.S.-listed equity order; dividends are typically paid in U.S. dollars after any applicable foreign withholding and ADR depository fees.

Why ADRs are common on E*TRADE:

• They remove the need for currency conversion at the time of trade.
• They trade during U.S. market hours and are subject to U.S. clearing and settlement practices.
• Information on ADRs is usually available in English and follows U.S. listing disclosure norms.

Limitations:

• Not every foreign company has an ADR; smaller or local-only companies may not be represented.
• ADRs can have limited liquidity and may trade at wider spreads than the underlying home-market shares.

Over-the-counter (OTC) foreign ordinary shares

Some foreign companies are available in U.S. brokerage accounts via OTC markets. These may include:

• Foreign ordinary shares quoted on the OTC market with special tickers (often suffixes like “F” in some systems), or
• Pink-sheet style listings representing direct foreign shares without ADR intermediation.

OTC listings allow access to foreign ordinary shares that do not have ADR programs, but they come with material trade-offs:

• Liquidity can be low and spreads wide, increasing execution cost.
• Information, financial reporting, and investor protections may differ from U.S.-listed securities.
• Commission and fee treatment depends on the broker’s OTC schedule; historically some OTC trades carried different commission schedules than U.S.-listed equities.

E*TRADE typically permits trading of OTC securities available in their system; investors should review the symbol details, market depth, and trade confirmations before executing.

International and global ETFs / mutual funds

U.S.-listed international ETFs are an efficient, widely available way to get diversified exposure to foreign regions, countries, or sectors through ETRADE. ETFs trade on U.S. exchanges in U.S. dollars and can be screened and traded on ETRADE’s platform like domestic ETFs.

Advantages of ETFs on E*TRADE:

• Instant diversification across many issuers in a single ticker.
• Many ETFs have low expense ratios and are commission-free to trade online (check current fee schedule).
• Trading is executed during U.S. market hours in dollars.

Considerations:

• ETFs may track indices that use derivatives or synthetic replication; read fund documents.
• Expense ratios, tracking error, and fund liquidity are important.

Broker-assisted or phone orders for foreign shares

For certain foreign markets or specific home-market trades, E*TRADE offers a broker-assisted option where a broker places an order on your behalf. These orders are typically handled on a best-efforts basis, may require specifying currency and exchange details, and often carry a broker-assisted service fee.

What to expect from broker-assisted international orders on E*TRADE:

• Higher per-order fees and possible execution markups.
• Potentially slower handling times than online U.S. trades.
• Additional paperwork, settlement timing differences, and currency conversion if executed in a foreign currency.

Broker-assisted trading is suitable if you need a specific home-market trade that is not accessible online through ADRs, OTC, or ETFs, but it is not as seamless or cost-effective as online market access.

Direct trading on foreign exchanges (current limitations)

Today ETRADE generally does not provide broad, automated direct online trading on many foreign home exchanges for retail customers. While ETRADE previously piloted and briefly supported more direct capabilities, the prevailing model for most retail users is indirect access via ADRs, OTC listings, and ETFs. Where direct home-exchange execution is available, it is typically limited, subject to additional fees, and often requires broker assistance or special account arrangements.

If you require persistent, full-featured direct access to Tokyo, London, Hong Kong or other home exchanges, consider brokers that specialize in global direct access or multi-currency trading accounts (see Alternatives section).

Fees and cost considerations

Fee structures change frequently, so always confirm the current schedule on E*TRADE’s official pricing pages before trading. Typical considerations include:

• Online equity commission: Historically many U.S.-listed stocks and ETFs, including ADRs and most U.S.-listed international ETFs, qualify for $0 online commission on many U.S. brokers; confirm E*TRADE’s current commission policy for ADRs and ETFs.
• OTC commission treatment: OTC trades may be subject to different commission schedules or minimums; check E*TRADE’s OTC fee policy.
• Broker-assisted fees: Placing a broker-assisted international order usually triggers a per-trade broker-assisted service fee in addition to any execution costs or markups.
• Currency conversion and settlement fees: If a trade requires settlement in a foreign currency (for direct home-exchange trades or some broker-assisted trades), currency conversion fees, foreign exchange spreads, or conversion commissions may apply.
• ADR depository fees: Some ADRs deduct small fees for depository services or have other issuer-level charges applied to dividends.

Because fee schedules and promotional pricing frequently change, verify the latest details with E*TRADE before placing international or broker-assisted orders.

How to find and place international trades on E*TRADE

Searching for ADRs, OTC symbols, and ETFs

• Start with the ticker or company name: If you know the company, enter the exact name or ticker into E*TRADE’s search bar. ADRs usually appear with the company name and an ADR designation.
• Use the ETF screener: E*TRADE provides ETF screening tools; search for region-, country-, or sector-specific ETFs to find diversified exposure to international markets.
• Confirm security type: Once you find a listing, review the security profile to confirm whether it is an ADR, an OTC foreign ordinary share, or a U.S.-listed ETF. The security profile will list trading venue, currency, and other key details.
• Watch liquidity and spreads: For OTC and thinly traded ADRs, check recent trade volume and the quoted bid-ask spread before executing.

ETRADE’s platform documentation and knowledge pages can help identify ADR tickers and ETF holdings; if unsure, contact ETRADE support for confirmation.

Steps for broker-assisted foreign order placement

1. Contact E*TRADE customer service or your broker desk: Explain the exact security you want, the home exchange (if applicable), and whether you request execution in the local market/currency.
2. Confirm fees and expected execution method: Ask about broker-assisted fees, currency conversion costs, and whether the trade will be routed using a local market counterparty.
3. Provide clear instructions: Specify order type (market, limit), size, price limits in local currency if applicable, and acceptable execution timing.
4. Expect longer handling time and written confirmation: Broker-assisted trades may take additional time for routing and settlement and will be subject to manual processing.
5. Review settlement and tax documents: Broker-assisted foreign trades sometimes generate additional statements showing FX conversions and cross-border settlement details.

Broker-assisted trades are “best-efforts” and not guaranteed to obtain the same pricing or immediacy as U.S. electronic executions.

Regulatory, tax and settlement issues

A few regulatory and tax points to keep in mind when trading international securities through E*TRADE:

• Dividend withholding: Foreign-sourced dividends on ADRs or direct foreign shares may be subject to withholding tax by the issuer’s home country. ADR programs sometimes administer withholding and convert dividends to U.S. dollars after withholding.
• U.S. tax reporting: U.S. investors remain subject to U.S. tax reporting rules for dividends and capital gains. Form 1099 or equivalent statements will reflect U.S. reporting; foreign withholding will be separately shown.
• Settlement timing: Settlement cycles may differ for broker-assisted or direct foreign trades compared with U.S. T+2 practice; ask E*TRADE for the settlement timeline for any cross-border trade.
• Currency conversion: Trades executed in a foreign currency will require conversion into U.S. dollars for U.S. account reporting; conversion fees or FX spreads may apply.

Always consult a qualified tax advisor to understand how cross-border dividends and capital gains interact with your tax situation.

Risks and considerations when buying international securities through E*TRADE

Key risks to consider:

• Currency risk: Even if you buy ADRs in U.S. dollars, the underlying company’s revenue and share value may move with local-currency fluctuations.
• Liquidity risk: OTC and some ADRs may trade with low daily volume, causing wider spreads and potential difficulty exiting a position.
• Disclosure and governance differences: Foreign issuers may follow different accounting standards and disclosure regimes, affecting transparency and comparability.
• Execution and slippage: Broker-assisted orders and low-liquidity OTC trades may suffer from wider slippage and less favorable fills.
• Withholding and tax complexity: Cross-border dividend withholding and tax credits can complicate net return calculations.

Careful due diligence on the security type, trading venue, and expected costs is essential before placing international trades.

Alternatives if you need direct home-market access

If your priority is direct, real-time online trading on home exchanges (for example, continuous electronic access to Tokyo, London, Hong Kong, or many European and emerging markets), consider brokers focused on global access. Reviews commonly cite firms such as Interactive Brokers and Charles Schwab Global Account for broader direct market access and multi-currency account features. These alternatives may provide:

• Direct, automated access to many foreign exchanges.
• Multi-currency accounts and more granular FX controls.
• Lower per-share or market fees for certain cross-border executions.

If you still prefer a single, secure account with crypto and wallet integration, explore Bitget’s custodial and trading services for crypto-native needs, while relying on a global broker for traditional international equity access.

Practical examples / common scenarios

1. Buying Toyota Motor Corporation exposure:

• Via ETRADE ADR: You can buy Toyota’s U.S.-listed ADR (ticker example) in dollars during U.S. hours on ETRADE like any stock. This is usually the most convenient route and avoids currency conversion at trade time.
• Direct Tokyo exchange purchase: Attempting to buy Toyota directly on the Tokyo Stock Exchange through ETRADE online is generally not available. You could request a broker-assisted order if ETRADE can route it, but this is likely slower and more expensive than using an ADR or an ETF that includes Toyota.

1. Gaining exposure to emerging-market small caps:

• Via ETFs: Buying a U.S.-listed ETF focused on emerging markets or a specific country gives diversified exposure on E*TRADE without handling multiple direct foreign trades.
• Direct local stocks: If you need specific local small caps listed only on foreign exchanges, E*TRADE’s options are limited; consider brokers with direct home-market access or working with a broker that can place international client orders directly.

Frequently asked questions

Q: Can I trade Tokyo/London/Hong Kong stocks online on E*TRADE? A: Generally no for direct home-exchange online trading; use ADRs, U.S.-listed ETFs, OTC listings, or request a broker-assisted order for select markets.

Q: Are ADRs commission-free on ETRADE? A: Many ADRs trade with $0 online commission under prevailing retail equity offers, but verify ETRADE’s current commission policy and any special OTC or broker-assisted fees.

Q: What about currency conversion fees? A: Currency conversion may be required for direct foreign trades or broker-assisted settlements and can include FX spreads or conversion charges. ADRs and U.S.-listed ETFs avoid per-trade currency conversion because they trade in U.S. dollars.

Q: How do taxes on foreign dividends work? A: Dividends from foreign-sourced companies may be subject to withholding by the issuer’s home country. ADR programs or brokers typically report both the gross dividend and the withholding for tax reporting; consult a tax advisor.

Q: Is ETRADE the best choice for direct international trading? A: ETRADE is convenient for ADRs, OTC, and ETFs but is not optimized for broad direct home-exchange online trading. If direct market access is essential, compare brokers that advertise global market coverage and multi-currency capabilities.

References and further reading

• “E*TRADE Foreign Stocks Trading (2025)” — https://www.brokerage-review.com/invest/global/etrade-foreign-stocks.aspx
• “Foreign Stocks at Charles Schwab and E*TRADE (2025)” — https://topratedfirms.com/articles/brokers-for-foreign-stocks.aspx
• Reuters, “E*Trade launches pilot global trading platform” (2007-02-20) — https://www.reuters.com/article/us-etrade-trading/etrade-launches-pilot-global-trading-platform-idUSN1620853320070220/
• CNBC, “E*Trade Launches Global Trading in Local Currencies” (2007-02-20) — https://www.cnbc.com/2007/02/20/etrade-launches-global-trading-in-local-currencies.html
• E*TRADE knowledge pages on international investing / global diversification — https://us.etrade.com/knowledge/library/getting-started/the-power-of-global-diversification

As of 2007-02-20, according to Reuters and CNBC reporting, E*TRADE announced a pilot program for global trading that included local-currency trading options for retail customers.

Notes and caveats

Brokerage features, supported markets, and fee schedules change frequently. Before placing international trades, verify current capabilities and fees on ETRADE’s official site or by contacting ETRADE customer service. For tax implications of cross-border investing, consult a qualified tax professional.

Further exploration: if you need both crypto-native services and multi-asset trading tools, consider researching Bitget’s wallet and trading offerings for secure wallet management and cross-product access while pairing a dedicated global broker for direct home-market equity access.

Want to compare options? Explore E*TRADE’s latest knowledge resources or contact a broker to discuss broker-assisted access; for Web3 wallet needs, consider Bitget Wallet to manage crypto holdings alongside your broader portfolio.