Not getting into Tesla or Apple feels like drooling at durians behind a locked door. The buzz over US shares, juicy dividends, and Elon Musk tweets is giving Malaysians serious FOMO. But how do you buy a piece of that gigantic American pie from Cheras, Penang, or anywhere else? Let’s break it down over some teh tarik.
Step one: Look for a broker that permits Malaysians register accounts to buy equities in the US. https://tradu.com/my/invest-in-stocks/
Maybank and CIMB are options, but watch out for sky-high charges. Thankfully, we’re living in the digital age now. Platforms like Tiger Brokers, Interactive Brokers, and TD Ameritrade make it easier to do things and usually cost less. You can trade on the toilet now, literally.
Get your documents ready. Can’t skip this step, unfortunately. NRIC, address proof (yes, your water bill works), and maybe a payslip. Expect the approval to take a few hours—or a couple of days. If it looks slow, don't worry; some brokers are just stuck in the slow lane.
Funding with ringgit? Bad news—you can’t use RM to buy US stocks. Convert to USD before dreaming of Netflix shares. Hidden charges love to hide in small print. Wise, which used to be called TransferWise, often has better rates than local banks. Test it and compare for yourself.
Now comes the fun part: buying your first US stock. If you want stability, go blue-chip: Microsoft, Apple, Google. Feeling lucky? Penny stocks can pop—or flop. Malaysians prefer big names—they’re familiar and usually less scandalous. You don't want to wake up to find out that a business has gone out of business overnight.
There are differences across trading systems. Some are slick, others look stuck in the Windows 95 era. Always test with a practice account first. Get comfortable and picture yourself putting on new baju raya before you show it out.
Remember Uncle Sam? He wants his cut. The US government will tax part of your gains. They’ll deduct tax on dividends right away. Capital gains are usually tax-free in Malaysia, but do check with a tax pro.
Malaysians are crazy about New York tickers, but don't allow your excitement get the best of you. Learn, listen, but think for yourself. Old traders sometimes give the worst advice—no joke.
Finally, keep in mind that danger is omnipresent, even in American markets. Don’t go all-in on trending stocks. Like a mixed platter at a nasi kandar booth, you should have a little bit of everything. If you get stuck, ask your friends or go to Reddit. You’re not the first to face these issues.
It’s easier now, but still not like peeling a rambutan. Take it easy, check everything three times, and preserve your sense of humor. You’ll learn it quick. Enjoy the ride!