Edale supports lots of young professionals and children that are US Connected people in the UK. It is common for us to hear stories that investment accounts get closed or frozen for American children or young professionals. They often feel they need to close the account or have it forced closed on them. Transfers to a platform that accepts Americans and a financial adviser to help know the rules can provide guardrails and reassurance to investment for the future while being an america.
Stories of investment accounts being closed for US-UK citizens are on social media. Below are a few samples.




Investment platforms in the UK have shut down or frozen accounts after detecting that individuals are US Persons because FATCA and IRS reporting requirements are complex. When investment platforms suddenly close accounts when they discover they belong to US Persons, the move leads to significant financial and tax consequences since ISAs lose their valuable tax-free allowances. The action may compel investors to liquidate their assets which could result in financial losses if market conditions are poor. The best approach involves moving accounts to platforms which can service US Persons so that tax benefits are maintained, and investment plans remain uninterrupted.
Investment platforms that do not accept Americans in the UK
Parents of young children and new investors often use online investment platforms, which they do not realise do not accept Americans. Below are a sample of the platforms we have spoke to clients or transferred restricted accounts to our US friendly investment platforms in the UK.
Trading212
The online trading platform trading212 has appealed to younger investors but its Terms and Conditions are clear its does not accept US Persons. See https://www.trading212.com/legal-documentation

Moneybox
Across Moneybox’s terms and conditions, they show that US Persons are not able to have accounts with them for Lifetime ISA, Stocks and Shares ISA, Junior SIPP or Cash ISA. See https://www.moneyboxapp.com/terms-and-conditions/





Plum App
The Plum App terms and conditions show they do not accept Americans https://withplum.com/legal/terms

Situations we have seen on closed investment accounts as US Person
The scenarios below are examples of situations we have seen. Its import to select an investment platforms, and we belive get advice, to cater to the unique needs of US Persons. Transferring accounts, rather than closing them, is the best solution. It keep tax-efficient savings working for you, prevents unnecessary investment losses, and supports long-term financial goals.
- ISA Frozen Due to US Citizenship: Emma who holds dual citizenship in the UK and US started a Stocks and Shares ISA to save money for her future. She put money into UK mutual funds, which experienced steady growth for two years. After discovering Emma’s US citizenship, the platform froze her account because of FATCA regulatory rules. Emma had to close her account within 30 days by selling off her mutual funds. Emma had to sell her investments at a 15% loss because her forced account closure aligned with a market downturn. The closure permanently eliminated her ISA’s tax-free status, reducing future reinvestment benefits. If the platform had encouraged transferring to a US-compliant provider Emma would have avoided losing her tax-free benefits and prevented unnecessary losses. There are also the additional impacts of punitive taxes as she was invested in UK ETFs.
- American’s Lifetime ISA for First-Time Buyers: Jack, who holds dual citizenship, started a Lifetime ISA (LISA) to accumulate funds for a house deposit while benefiting from the government’s 25% bonus. Jack saved consistently for three years to receive the government bonus. The platform froze Jack’s LISA when they discovered he was a US Person because of compliance requirements. Jack had to close his account as he had not considered a transfer was possible and resigned he was only able to do esaver accounts. The absence of a solution resulted in the forfeiture of his government bonus and withdrawal penalties. This setback delayed his home purchase plans. The situation could have been improved if Jack’s LISA had found a US Person friendly platform from day 1 or considered a transfer to a provider capable of serving US Persons so that his savings and bonus were preserved.
- US Expat Stocks and Shares ISA Invested in shares: Sophie used a Stocks and Shares ISA to invest in shares from companies she liked and brands she knew. Her parents had offered to fund some of the accounts, and college had taught Sophie the positive habit of regular savings. As a dual citizen of the UK and US, Sophie was stayed in the UK after graduating from University. She intended to keep these investments until later in life or retirement. After recognising her as a US Person because the original platform did not ask her about citizenships the platform notified her that the ISA was going to be closed immediately. Sophie had to sell all her investments because of this situation, with some investments being profitable and others making losses. The sale of Sophie’s investments brought about US tax issues due to triggering capital gains tax events, which created problems besides some financial losses. If Sophie had moved her ISA to a platform that supports US Persons before issues arose, she could have preserved her investments and maintained her UK tax-free allowances.
These scenarios highlight the importance of selecting investment platforms that cater to the unique needs of US Persons. Transferring accounts, rather than closing them, ensures tax-efficient savings, prevents unnecessary investment losses, and supports long-term financial goals.
Edale does accept US UK Children and young adults to invest – all are welcome
Edale offers investment solutions for US-UK children and young adults, simplifying the challenges associated with dual citizenship and international tax laws. Edale remains open to all clients and fulfils their investment requirements without restrictions, solving the issues other platforms can create when closing accounts or imposing limitations after identifying a US Person’s status. Helping young investors create a stable financial foundation through Junior ISAs and SIPPs or General Investment Accounts, Edale also acts as a housekeeping to help individuals maintain UK and US regulatory compliance. Edale offers access to appropriate investment products while managing tax-efficient accounts such as ISAs for young people and provides family guidance to safeguard their savings and allowances. If you want services to meet the specific needs of US-UK challenges for investing. Or, to enable your children and young adults to start their investment journey with confidence and achieve long-term financial growth regardless of their citizenship status, take a moment to contact us or book an appointment. All the links are in the footer of this page, so it’s super easy.