It might look like a huge leap to buy US equities from Malaysia, but it's not as hard as you think. Many assume that getting started in the American market is hard, but it's much simpler if you follow these steps. Here's how to get a piece of huge names like Tesla or Apple, whether you want to grow your investments or just wish to join the action.
To start, you'll need a investment account that allows global investing. click to read more
Some of the best platforms for overseas investors are Fidelity. The key is to pick one that has low commissions and allows direct stock purchases in the US. Usually, these brokers allow you to open accounts digitally, but you'll need to submit certain papers to prove who you are and where you live in Malaysia. So, remember to bring your IC/passport plus address verification!
Next, you'll need to put money into your account. At this point, things can be slightly tricky. Most of the time, you'll be sending money internationally, and some brokers accept MYR deposits. Some people might want you to change your money to USD before sending it. In either case, the process can take some time, so don't expect it instantly. Before you start trading, double-check your account is set up.
You can buy your first US stock once you put money into your account. You can trade equities in the same way you would at a local store: look up the company, decide the number of units you want to buy, and execute the purchase. Some brokers also support buying partial shares, which means you don't have to buy a complete share if you're a beginner or don't have a lot of money to invest.
When you start buying US equities, there are a few things you should keep in mind. First, you should think about how this would affect your tax situation. Malaysia doesn't tax capital gains, but the US government might withhold tax on dividends. The tax rate is usually roughly 30, but if you're a foreign investor, you can often lower it by filing a W-8BEN form to your broker. This form confirms that you live outside the US and helps you get a reduced withholding rate under the US-Malaysia tax treaty.
The time zone difference is another thing to think about. If you want to trade live during market hours, you'll need to change your schedule because the US stock market is open during US business hours. Just pay attention to the market hours, and you'll be fine.
Lastly, the value of your equities will depend on the currency rate between MYR and USD. If the Ringgit weakens against the USD, it can reduce your returns to acquire the identical stock. You should always monitor the conversion rate so you know when it's time to convert your MYR to USD.
To sum up, it's easy to buy US stocks from Malaysia if you know how to do it. Simply choose a trading platform, add money to your account, place your order, and be mindful of your taxes and the exchange rate. Happy investing!