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“. If you prefer to invest via Australia try HSBC.
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.
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