Stock market investors in Singapore, to a large extent, have their funds exposed to a single economy. Every global economy has its own weaknesses and strengths and there are certain risks inherent to the economies. Also, not all economies tend to grow or show signs of fragility at the same time. However, the US economy presents a suitable opportunity for Singaporean investors to let their domestic portfolio get a foreign flavor from some of the biggest names in the corporate world. If you are investing and holding some top Singapore stocks like TDCX, Singtel, Grab, DBS Group, Wilmar, Sea, among others, there’s always a good enough reason to buy the US blue chips such as Google, Amazon, Apple, Tesla and others.
1. Why Invest in the United States Stock Market?
No other financial market is as large, accessible, transparent, and liquid as the U.S. market. Its transaction volume, market capitalization, and number of listed companies make this market a unique investment opportunity for international investors.
- Better capitalization: The U.S. stock markets represent the biggest single concentration of wealth in history. Together, the New York Stock Exchange and NASDAQ comprise the deepest financial market in the world.
- More liquidity: Looking at the NYSE alone, the value of the share trading for 2018 was 7.6 times that of London, 3.1 times that of Tokyo and 8.3 times that of Hong Kong. The U.S. markets are also the biggest in terms of turnover too. This means you have a good chance of finding a buyer or seller of any stock at any time.
- Greater diversification: U.S. markets offer access to a large variety of American companies seeking capital. With close to 5,000 companies to choose from, you can invest in major corporations and global brands that list their shares here.
2. How to Invest in the United States Stock Market?
2.1 Open an investment brokerage account from mg21.com
Mg21.com has investigated and analyzed all the brokerages from the market, and we carefully featured Top 2 of them for our visitors to choose from. Then you can simply open an account with huge rewards from this page below.
2.2 Fund your investment brokerage account
Deposit money to your investment account. / Transfer money from you bank account to your brokerage account. In order to get the prize or FREE stocks, you'd better meet the minimum deposit requirement, usually 2000-3000 SGD.
2.3 Start investing in US stocks or ETFs!
Once the money is in your brokerage account, you can officially start investing in the US stocks. The US stock market is huge, so we’ll give you some starting-out tips below.
3. Two Best US Stock Brokerages for Singaporean
3.1 Futu MOOMOO
The Moomoo App is a trading platform offered by Moomoo Inc. Securities services available on the moomoo App are offered by: Futu Inc.(regulated by the U.S. Securities and Exchange Commission (SEC)), Futu Singapore Pte. Ltd.(regulated by the Monetary Authority of Singapore (MAS)), and Futu Securities International (Hong Kong) Ltd.(regulated by the Securities and Futures Commission of Hong Kong (SFC)).
Exclusive Offer: Deposit SGD2700+ to receive 1 share of AAPL plus SGD40 cash coupon. Valid till 30 Nov 2021.
Transfer-in Bonus: transfer-in amount S$50,000-99,999 to get I AAPL share free; S$100,000-199,999 to get 2 free shares of AAPL; first 50 who complete a min. of S$200,000 shares transfer-in can get an Apple iPhone 13 (worth S$1,469), 3 free Apple shares after. Valid till 30 Nov 2021.
Any one who open an moomoo account from mg21.com will enjoy an unlimited commission-free trades for 180 days and free access to Market Data on multiple stock exchanges.
Open a moomoo account and claim your free stock NOW!!!
Mobile customers scan the QR code to get start and enjoy the same bonus.
Moomoo Features and Details:
- One trading account to access trading in SG, US, HK and CN markets
- Free Level 2 market data for advanced analysis
- 24 hour online client support on trading days
- No custodian or account maintenance fees
- Deposit Methods: Bank Transfer, Paynow, Wire Transfer
- Product Offered: Equities, Bonds, Indices, Reits
- Trading Platform: Web, Mobile
Moomoo Trading Fees:
- Min. Trading Fee 0.03%
- Account Opening Fee $0
- Withdrawal Fee $0
- Min. Commission Fee (S$) S$0.99
- Min. Commission Fee (US$) US$0.99
- Generous sign-up bonus of free Apple share(s) - With an minimum S$2700 deposit, you can get 1 free AAPL share which worth around US$150, plus a S$40 cash coupon. Upto 3 free AAPL shares transfer-in bonus applied.
- Low commission fees - moomoo commission fees for your trades made on the US, Hong Kong and Singapore market are amongst the most competitive rates. For example, moomoo charges 0.03% of the transaction amount for stocks on SGX and US$0.0049 per share for US stocks.
- Join a global investment community. MOOMOO is developed by NASDAQ listed company Futu Inc.(NASDAQ:FUTU), which is backed by Chinese tech tycoon - Tencent. With moomoo, you can reach tens of millions of investors from all over the world from the community.
- TRUST. lmoomoo is the No. 1 trading app in Hong Kong and moomoo's parent company, Futu is part of the MSCI Hong Kong Index. Brokerage service on moomoo app is offered by Futu Inc. Futu Inc. is an SEC registered broker-dealer that is a member FINRA/SIPC. Securities in your account are protected up to $500,000 by Securities Investor Protection Corporation (SIPC).
- Advanced charting and research tools - Moomoo provides the most advanced Hong Kong stock market analysis tools, including top 10 net buy/sell brokers, short selling data, indicator interpretation, analyst ratings etc.
3.2 Tiger Brokers
Tiger Brokers (Singapore) Pte. Ltd. (Reg. No. 201810449W) is licensed by the Monetary Authority of Singapore and is authorised to operate in Singapore. Products and services from Tiger Brokers (Singapore) Pte. Ltd. are offered in Singapore and materials published shall not be deemed as an offer or solicitation to conduct business in any other jurisdiction.
Exclusive Offer: Making a minimum deposit of SGD2000 and get a FREE share of AAPL which worth around USD150. Valid till 30 Nov 2021.
Receive S$20 cash via PayNow upon account opening. Valid till 14 Nov 2021.
Open a Tiger Brokers account and claim your free stock NOW!!!
Mobile customers scan the QR code to get start and enjoy the same offer.
Tiger Brokers Features and Details:
- Access stocks, ETFs, options, warrants, CBBCs, REITs, futures, and more on multiple markets from a single account
- One of the lowest fees per trade on the market at 0.08% (SGX)
- No min. commission, inactivity, or custodian fees
- Currency conversion fee waived for Forex trading
- Application can be expedited using SingPass MyInfo
Multiple trading features such as one-click trading, profit/loss analysis, stock options trading, in-depth analytics, screeners, and candlestick charts
- Min. fee of US$1.99 per trade for US equities on NYSE and NASDAQ
- Min. fee amount applies for equities trades made on SEHK and HKEx
- Deposit Methods: Bank Transfer, Paynow, Wire Transfer
- Product Offered: Equities, Bonds, Indices, Reits, Options
- Trading Platform: Web, Mobile
Tiger Brokers Trading Fees:
- What you can invest in: Stocks, ETFs, options, warrants, CBBCs, REITs, futures, funds
- Minimum balance required: No min. balance or deposit required
- Fees for Singapore stocks: 0.04% per trade
- Fees for US stocks: US$0.005 per share, with min. US$0.99 per trade.
- Fees for HK stocks: 0.03% per trade, with min. of HK$7
- Fees for AU stocks: 0.03% per trade, with min. of AU$2
- Fees for China A-shares: 0.03% per trade, with min. of CNH7
Why should you trade with Tiger Brokers?
- NASDAQ Listed Broker Company: Tiger Brokers is a trading platform developed by UP Fintech Holding Limited (NASDAQ:TIGR) for US and Singaporean investors.
- Generous sign-up bonus of a free Apple share - First single deposit of at least SGD2000 to get a FREE share of AAPL (worth ≈ US$150).
- More rewards and perks: To register a new Tiger Brokers account from mg21.com, you can receive a free Apple share, 60 commission-free stock trades, and 5 commission-free futures trades.
- Competitive commission fees: Tiger Brokers offers competitive commission fees for trades across different markets. Other Tiger Brokers aspects: no custody fees, no deposit/withdrawal fees, no currency exchange fees, no inactivity fees or account maintenance fees. 0.04% commission fee with no minimum commission when trade Singapore stocks, ETFs or REITs. US$0.005/share to trade the US market w/ $0.99 minimum per trade.
- Variety products available for trading: Tiger Brokers allows users to trade stocks from markets including Singapore, USA, Hong Kong, UK and China. Tiger Brokers also offers more than just stock trading, providing access to trade ETFs, options, warrants, futures, funds and more on their platform.
4.US Stock Investing Q&A
4.1 How to choose the best investment brokerage for you?
You can start evaluating brokers based on a few factors, including:
- Account minimum.
- Account fees.
- Pricing and execution.
- Tools, education and features.
4.2 How to invest in US stocks?
Buying stocks isn’t as complicated as it seems, but you’ll need to do some research — and learn the lingo — before you make your first investment.
- Select an online stockbroker
- Research the stocks you want to buy
- Decide how many shares to buy
- Choose your stock order type
- Optimize your stock portfolio
4.3 Reasons to Invest in US Stocks
While diversifying internationally is well worth considering, when it comes to a discussion of country bias, it should be acknowledged that the U.S. occupies a unique position on the global financial stage.
- Currency risk. U.S. dollar is one of the most stable currency in the world. You don't have to worry about the currency fluctuations lose.
- The “big dog” effect. The U.S. is the big dog in the global economy. The US stock market collects the most profitable and noted companies, such as Facebook (Now Meta), Google, Amazon, Apple, Microsoft, Goldman Sachs, Tesla, Netflix, Bunge, etc.
- Liquidity. The U.S. stock market is by far the world's biggest, at about five times the size of the next largest. When it comes to being able to trade stocks efficiently even during times of investor distress, the U.S. has an advantage over most other countries.
- Relative strength. The U.S. economy is running pretty well right now, while much of the rest of the world is struggling.
- Interest rate environment. As low as they are in the U.S., interest rates are even lower in some other countries (especially relative to inflation). Falling interest rates tend to boost stock prices, but once rates are already low, you should be concerned that the inevitable bounce-back in rates will create a headwind for stocks going forward.
- Credit risk. Switching to the bond side of the portfolio, U.S. Treasuries carry less credit risk than the government bonds of many other countries — something to keep in mind in the wake of repayment failures by countries such as Argentina and Greece.
4.4 What are US stocks and how does it work?
The stock market is where investors connect to buy and sell investments — most commonly, stocks, which are shares of ownership in a public company.
US stocks refer to stocks listed on the US financial markets, such as the NASDAQ and New York Stock Exchange (NYSE). Investors or traders can purchase US stocks with their online brokerage account. This brokerage account can be opened with any broker of choice.
4.5 More facts
- The US offers larger exposure in terms of growth than many local stocks. However, there are risks to note too.
- There are different US indices such as the S&P 500 index, the Dow Jones Industrial Average, and the Nasdaq Composite Index.
- The US stock market trading hours are from 9.30 am Eastern Time (ET) to 4 pm ET from Monday to Friday (in local time, it’s from 9.30 pm or 10.30 pm till 4 am or 5 am depending on daylight savings).
- In the US, we can buy one share, unlike in Singapore, and that helps in position sizing.
Disclaimer: The information provided by mg21.com serves as an educational piece and is not intended to be personalised investment advice. Readers should always do their own due diligence and consider their financial goals before investing in any stock.