Read on to know about how to buy US stocks from Malaysia.
If you want to invest as an expat or high-net-worth individual, which is what i specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).
Table of Contents
Introduction
Malaysian investors may benefit from investing in overseas equities. It will diversify your portfolio and assist you in managing currency swings, among other things. As a result, in this post, we’ll go over how to participate in the US stock market from Malaysia, as well as why you should start doing so.
How To Buy US Stocks From Malaysia: Getting Started in Global Trading Investment
You may start investing in the US stock market in one of two ways. A foreign broker is one option. The other option is to employ a local brokerage business that specializes in overseas stock trading.
Most brokers should be able to assist you in creating a CDS account when you open a trading account.
Make Use of a Global Broker
Opening a trading account with an international broker that allows you to buy foreign equities is one approach to purchase a foreign share. You can, for example, register a nominee account with a broker that will assist you in trading overseas equities. A nominee account is one in which a stockbroker holds shares on behalf of clients, making it simpler to acquire and sell such shares. Brokers will hold your stocks in a nominee account for you, but you will retain ownership rights as you pay for the securities.
When Trading Foreign Stocks, Use a Local Broker
Another option for buying foreign stocks is to create a worldwide trading account with one of Malaysia’s investment banks or security organizations. Your money will be invested internationally, but the assets will be located locally. Most Malaysians will choose to trade with a local broker since it is more convenient to withdraw cash.
Required Minimum Budget to Buy US Stocks from Malaysia
The first thing you’ll need if you want to buy US stocks from Malaysia is enough money. But when does enough become excessive? How much money do you need buy US stocks from Malaysia?
You’ll need at least $200 (RM800) to $1,000 (RM4,000) to begin investing. If you just have $1,000 (RM4,000) to invest, it’s good to start with only one stock and gradually increase your holdings. Some brokerages may allow you to acquire partial shares if you’re starting with a little quantity. Furthermore, you may only purchase one stock in the United States. In Malaysia, however, investors must purchase at least one lot, or 100 shares.
Never put money into stocks that you will need in the future. Furthermore, rookie investors are urged not to take on more major risks than they are capable of doing without jeopardizing their entire financial situation.
Best Brokers to Buy US Stocks from Malaysia
- FXTM: Strong Education
- Tickmill: FCA Regulated
- IG: Over 16k stocks to trade
As a beginning trader, you must select the appropriate online trading platforms or broker. Choosing the incorrect broker might significantly reduce your investment returns. As a result, having a reputable broker will aid you in your financial endeavors. For your online stock trading in Malaysia, below is a list of brokerage firms and their charge structures.
In Malaysia, there are several stockbrokers who provide US stock market trading. As a result, you should conduct research to choose the finest stock broker for your investing profile.
Reasons to Buy US Stocks from Malaysia
Profits from Investment
The ability to expand your money is one of the main advantages of investing in the US stock market. The stock market tends to gain in value over time due to its currency value compared to the Malaysian ringgit. Furthermore, demand for US equities is increasing globally. This will eventually lead to financial gain.
Diversification
Diversification is an advantage of investing in the US stock market. Despite the fact that the political and economic landscape in the United States differs from that of Malaysia, investors will still have US equities to fall back on should the Malaysian stock market falters. The stock also adds risk and the possibility for large, quick profits to a portfolio, allowing you to avoid risk-averse or overly cautious investment techniques.
Opportunities for Growth
There’s a reason why the majority of the world’s top corporations are based in countries like the United States or China. These countries’ markets are much larger, giving enterprises more time to expand. The US stock market will give you with greater growth prospects because most Malaysian firms have a restriction on how much they can grow domestically.
Final Thoughts
Finding strategies to diversify your portfolio is critical as an investor. Investing in the stock market of the United States can not only assist you with this, but it will also allow you to make extra money. However, before you begin, make sure you have the necessary trading expertise. Remember to pick the best broker for you to reduce the danger of your money being lost.
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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
