Do you want to invest in US shares while living in Malaysia? It’s easier than many expect, and more and more investors are getting involved to take advantage of the expanding US market. You may easily invest in big tech businesses like Google and Amazon or emerging businesses that are in early stages.
First things first, you’ll need to get yourself a trading account. more about the author
But not just any account; you need a cross-border investment account that allows international market trading. Malaysians can open accounts on several popular brokers, such as TD Ameritrade. These brokers provide tools for you to buy and sell US equities and manage your portfolio. But first, make sure the platform works in Malaysia. Before you submit documents, ensure that the platform you want to use has no restrictions for overseas investors, including extra identity documents.
You will need to deposit cash after it is set up. Most brokers would accept foreign transfers, however some may have specific conditions for Malaysians. You may usually add money via wire transfers or even payment systems like PayPal. Keep in mind that you’ll need to exchange your MYR into American currency in order to trade. So, watch the currency rate to avoid extra charges.
Now comes the fun part: making the investment! You can explore listed firms after you make your deposit. The procedure is the same whether you choose blue-chip stocks or opt for high-risk growth stocks. Find the stock’s market abbreviation, type in the quantity of shares you desire, and submit your buy request. It’s just like e-commerce. You can choose from different trade types based on your strategy, like market orders or conditional trades.
But here’s the thing: US stocks can swing quickly. Watch the charts, because what is popular at the moment could not be hot tomorrow. Most brokers, thank goodness, give you tools and data to support your decisions. Some platforms even let you receive updates for breaking headlines or price swings that could impact your holdings.
Lastly, don’t forget about tax matters. You are exempt from capital gains taxes on your foreign stock profits in Malaysia. The US government will still take a share, though: a 30% withholding tax on dividends. To get the lower tax rate of 15% that the US-Malaysia tax treaty allows, you will need to fill out a W-8BEN form with your broker.
It may seem confusing in the beginning, but once you learn the steps, buying US stocks from Malaysia will be straightforward. Plus, you can’t go wrong because you have access to a global powerhouse of investment. So, why not? Start right away and look into all the chances that are waiting for you. Good luck on your investment journey!