How to invest in US stocks from Malaysia (2022)
As of 2021, there are at least a dozen online trading platforms in Malaysia with access to Wall Street’s New York Stock Exchange and NASDAQ, however there are some big differences when it comes to costs and features. Read on to find out more.
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Buy US shares in 4 steps
- Compare brokers with access to US stocks
- Open your account by providing ID
- Fund your account by transferring money from your bank account
- Search and select the shares you want to invest in and start trading
Compare share trading accounts that trade US stocks
| Name | Interest on deposit? | Intraday trade | CDS fee | ||||
|---|---|---|---|---|---|---|---|
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No
|
Yes
|
N/A
|
CFD Service. Your capital is at risk.
The Zachs Trade platform offers stocks, ETFs, bonds, options, and more with access to more than 90 exchanges worldwide |
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Alliance Bank Trading Account
|
 |
Yes
|
Yes
|
N/A
|
CFD Service. Your capital is at risk.
Trade on-the-go and diversify your portfolio with a myriad of investment products, ranging from bonds to unit trusts. |
||
|
CIMB Trading Account
|
 |
Yes
|
Yes
|
RM0
|
CFD Service. Your capital is at risk.
Access multiple stock exchanges, exclusive research materials, real-time portfolio management, and other trading conveniences to grow your investments. |
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|
Hong Leong Trading Account
|
 |
Yes
|
Yes
|
RM10
|
CFD Service. Your capital is at risk.
Enjoy the flexibility of bursa trading and access global markets with a single platform. |
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|
Rakuten Trade Trading Account
|
 |
Yes
|
Yes
|
Free
|
CFD Service. Your capital is at risk.
Benefit from low fees and earn reward points when you trade on this all-in-one digital brokerage. |
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|
RHB Trading Account
|
 |
Yes
|
Yes
|
RM10
|
CFD Service. Your capital is at risk.
Trade in futures, shares, and warrants across major foreign markets with Malaysia’s largest investment bank. |
Not all brokers or trading platforms provide access to global stock exchanges, so if you want to buy and sell US shares, you’ll need to find one that offers the service for a cost effective brokerage fee.
Why invest in US stocks?
There are many reasons for Malaysian investors to own stocks listed in the US. In the last decade, Wall Street’s S&P500 index has delivered returns of around 199%, while Malaysia’s equivalent the FBM KLCI returned around 6% for the same period.
US stock markets also offer a greater diversity of companies than is available in Malaysia. The New York Stock Exchange and the NASDAQ are the two largest stock exchanges in the world in terms of market capitalisation. Many of the world’s biggest global growth companies, such as Facebook, Amazon, Apple, Netflix and Google (FAANG) are listed in the US.
Profit aside, holding a diversified stock portfolio is also safer. This means investing in companies from a range of sectors as well as countries. So, if Malaysia’s economy were to slow, stocks listed in another country such as the US can act as a buffer.
What are the costs of buying US shares?
A couple of decades ago, investing in global companies was fairly costly. Today, many online trading platforms allow Malaysian investors to buy and sell shares in Malaysia, the US and other international markets for less than US$10 a trade in brokerage fees. There are even a few that scrap the brokerage fee altogether.
However, not all trading apps in Malaysia offer US stocks. Some only offer Malaysian shares or they may charge additional high fees for the service. Before signing up to a new account or broker, it’s important to check which countries are on the books and what the associated fees are.
Each platform works in a different way, however the same general rules apply as with buying Malaysian shares – with a few additional considerations. For example you’ll be charged a brokerage fee and a foreign exchange (FX) fee when you trade shares. Brokerage fees are sometimes higher on international accounts and there may additional costs such as an inactivity fee.
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