Investing in the US Stock Market

How to invest in the US stock market?

There are a number of ways to invest in U.S. stock market. Here are the top 3 options:

Local online brokers

Some online brokers offer access to a number of overseas exchanges. Many of them allow you to settle trades in the target current of the stock exchange that you trade. Research shows that the number of people trading overseas has started to pick up over the past few years. Many stock brokers' clients are registered for overseas trading service, although not all of them trade actively.

Managed funds

For some investors managed funds will be a better choice. Managed funds may get you the same level of return with less time and a lot less angst.

By using a managed fund to invest overseas, an investor is effectively paying for a number of well-trained and experienced professionals to select and build a diversified portfolio of stocks operating different industries and countries. These professionals are supported by teams of research, client service and business personnel and sophisticated systems.

Do check out and discuss with the local funds promoters and sellers in your region for investing in international share funds.

US online brokers

Many US-based brokers do accept foreigners to open a trading account with them. Some of the big names such as Charles Schwab, E*Trade, and TD Ameritrade welcome non-US citizens to trade in the US stock market.

When selecting a US based broker, do consider factors such as trading fees, ease of funds transfer to and from the trading account, as well as the features of the online trading platform. Some of the newer and smaller brokers such as Zecco, First Trade, TradeKing and OptionsXpress offer attractive rates and good support for foreign investors. So it is important to research and choose a broker that works best for your trading needs.

Steps to open a US trading account:
  1. Select a broker from our Brokers Comparison page.
  2. Fill in an online form or email the broker to open a new account.
  3. Print and sign the forms, and scan a copy for record purpose.
  4. Print and sign the necessary tax exemption forms.
  5. Prepare copies of your photo ID (Passport or other form of identification) as proof of non-resident status.
  6. Send the completed forms to your broker either by email (scanned copies) or post (hard copies).
  7. Once the trading account is ready, transfer fund to your trading account by Wire Transfer, Cheque or other options supported by your broker.
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