In the beginning, investing in U.S. stocks from Malaysia might look intimidating, but don’t worry—it’s easier than it sounds. Let’s make it simple.
The first thing you need is a brokerage account. www.tradu.com/my/invest-in-stocks/ Quite a few Malaysians go with foreign brokers rather than local Malaysian firms. Interactive Brokers, TD Ameritrade, and Charles Schwab are among the brokers that make it possible to trade U.S. equities globally. You simply need the required documents and an online connection.
You’ll need to provide proof of identity, such as a passport or driver’s license, along with your bank account details. Certain brokers may ask for proof of address. When your account setup is complete, you can start trading U.S. stocks as if you were on Wall Street.
The trading process for most brokers is simple. You fund your account, select the stocks you want, and click “buy”. Here’s the part about currency conversion. Trading is done in USD on most platforms. You’ll deposit Malaysian Ringgit (MYR), and it will be automatically converted to USD at the live rate. Keep an eye out for conversion fees—they differ among brokers.
A few brokers include trading commissions, but others let you trade for free. It’s smart to compare fees before committing. Keep an eye on currency rates, because even small shifts can change how much you pay. You can use free tools online to stay updated on rates, to avoid any unexpected expenses.
Then there’s the tax side of things. U.S. law requires foreign investors to pay dividend withholding tax. Basically, the IRS deducts a certain percentage before your dividend reaches you. Fortunately, a tax treaty between Malaysia and the U.S. helps lower this deduction. You may be able to recover part of the tax when filing your Malaysian return.
Lastly, for long-term investors in U.S. equities, it’s important to understand the risks involved. Stock prices can move up and down quickly, plus exchange rate movements can impact your profit. Still, investing in world-famous companies like Apple, Tesla, or Amazon can bring solid long-term growth.
The stock market is always active, and so are your chances. Stay informed about market trends and world news, without being swayed by short-term volatility. Patience and balance go a long way when investing abroad. It may look far away, but careful planning can get you there.