Posted on 27 Jul 2018
I'm right now waiting for a market correction but want to get ready... hence I am keen to buy US stocks like (FANG = Facebook, Amazon, Netflix and Google) but they are all listed on the US stock exchanges (eg NASDAQ and NYSE) How do I go about buying those and which accounts, steps do I need to set up also, which are the best cost effective way yet easy to use also?
Hi there! I can give you my experience based on the brokerage I use right now - DBS VICKERS.
You will have to ACTIVATE FOREIGN MARKETS TRADING:
Log in to DBS Vickers with your User ID and Password.
Under My Account, select Account Management.
Accept/Acknowledge the following agreements to start trading in foreign markets:
United States Market* (Accept/Review Withholding Tax Agreement);
Overseas Listed Investment Products (Acknowledge/Review Risk Warning Statement);
Market Data for Canada & United States (Accept/Review Agreement).
Things to note!
You will need to fill up a form W-8BEN because it is a requirement for a withholding tax which US law will charge for all it's retail investors.
Take note of fees as well. for DBS VICKERS, I use it because of convincnce but the fees for overseas trades are: Min USD25 or 0.18% trading principal (whichever is higher)
I use Philips Securities, just bought FB recently, pre-crash :( and top up Post crash :)
Been buying local stocks only, I only just realise last year that I can just trade international stocks normally without doing anything extra. (DUH)
For US stocks, you will need to fill in a tax form. Call your agent or inventment company. They should be able to help you.
I just walk into the Philips Investor Centre and they helped me with the form and everything.
Buying DIY online will be cheaper then through broker. This would be true for all trading accounts.
Hope this helps
Personally using Saxo.
It's a custodian account - meaning you dont legally own the shares but S...
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