Do you want to invests overseas, but is not sure how?
Do you want to invest into the largest stock market in the world (NYSE) but have no idea how?
Do you want to invest in high flying technological stocks such as Apple and Microsoft but wonder how to do it?
Do you want to invest into the second largest wealth generator in the world, that is China/HK stock market?
Do you want to invest in just about any large and reputable company, in almost the entire world?
Now you can!
This post is the continuation of the previous post, “Why Should I Invest or Trade in US Stock Market?”
There are two ways for you to invest in US Stock Market. The first option is invest via our local brokers such as RHB Investment Bank and the second method is to open an account with US based brokers.
I prefer to use the second option by opening an account with US based brokers. The main reasons I choose US based broker are, lower brokerage fees and less forex risk or currency exchange rate. This article will focus on that. If you prefer to invest via local (Malaysia) Stock Broker, you may want to look at “How to Invest in Overseas Stock Markets Easily“.
For comparison, our local brokers may charge about RM40 (~USD13.00) per trade while with US broker, the charges is as low as ~RM8 (USD2.50) per trade. Regarding forex risk, some of the local brokers you have to do currency exchange each time transaction is made. This is not the case if you are using US based brokers.
It’s not hard to understand the world’s enthusiasm for U.S. investments. No other international financial market comes close to the size, accessibility, transparency and liquidity of U.S. stock markets.
Below are 3 main reasons why you should invest or trade in US Stock Market.
1. U.S. Markets are Better Capitalized
The U.S. stock markets represent the biggest single concentration of wealth in history. In terms of market capitalization, no other financial market comes close to the combined U.S. stock markets. As of the end of 2009, the market capitalization of the NYSE was valued at US11.84 trillion.