How To Invest In (Buy & Sell) US Stocks In The Philippines 2023?

Are you a Filipino investor looking to explore US stock market opportunities? Investing in US stocks can be a great way to diversify your portfolio. But you are probably wondering, "how do you invest in US stocks from the Philippines?' 

In this article, we'll guide you through investing in US stocks from the Philippines in 2023. From setting up a brokerage account to understanding the tax implications, we'll cover everything you need to know to get started with confidence. 

So, if you're ready to take your investment journey to the next level, keep reading!

Investing in US stocks can offer a range of benefits for you. For one, it can provide diversification by adding a different geographic region to one's investment portfolio. 

Additionally, the US stock market is the world's largest and most developed, with a history of strong returns over the long term. Investing in US stocks allows you to access a wide range of industries and companies, including some of the world's most well-known companies.

For example, investing in the S&P 500 can offer exposure to a diversified portfolio of 500 large-cap US stocks, which can help reduce risk and provide long-term growth potential. 

The S&P 500 has historically delivered strong returns, growing more than 2000% from 1980 till now, an average annual return of 11.7%.

Benefits of Investing in US Stocks in the Philippines

1. Access to a wider variety of innovative stocks

US stocks offer exposure to some of the most innovative and profitable companies in the world, such as Apple, Microsoft, Amazon, and Tesla. These companies are constantly creating new products and services that shape the future of various industries and sectors.

2. Access to a strong and resilient economy

The US economy has a Gross Domestic Product equal to a quarter of the world's economy, so the size alone makes the US economy have a very big impact on the rest of the world. Whatever happens in the US stock exchange affects the Philippine stocks and the world. Therefore, you can benefit from a more robust economy by buying stocks in the US.

3. Potential for higher returns

Philippines who buy and sell US stocks have access to more profitable companies. The US stock market has a history of strong returns over the long term. While past performance doesn't guarantee future results, investing in US stocks can offer the potential for higher returns compared to other markets. 

4. Higher Trade Volumes

The majority of US stocks are traded on different exchanges all over the world. As a result, the global market enables US stocks to have larger volumes than Philippine stocks. The large volumes traded in US stocks lead to more liquidity. Investors can therefore buy and sell their stocks easily. 

Investing in US stocks isn’t like solving Algebra; you have to follow some steps, and voila!  

Here are the steps you need to take:

1. Research and select US Stocks

Before investing in any stock, it's essential to do your research and understand the company's background, financial performance, and industry trends.

Information on how to buy stocks in the Philippines and where is easy to find, especially online. You can use online tools such as Yahoo Finance or Google Finance to gather information and evaluate stocks.

The best way is to have a watch list of the stocks on NYSE and Nasdaq. The following U.S. stocks are the stocks I shared with you, not investment advice.

This list of well-known us stocks is incomplete; many international companies are available for investment. Just click here to easily trade the US stocks and indices today! 

2. Identify a Legit Stock Broker 

The next step is to choose a brokerage that offers access to US stock markets. Look for a brokerage regulated by reputable authorities and has a user-friendly trading platform that suits your needs. 

Some popular online brokerages that offer access to US stocks include Mitrade, Tiger, and Interactive Brokers. 

1. Interactive Brokers 

Interactive Brokers is a US-based brokerage that offers access to a wide range of investment products, including US stocks. They offer a powerful trading platform that is suitable for advanced traders.  One of the key benefits of using Interactive Brokers is its low commission rates. They offer some of the lowest commission rates in the industry, which can help you save money on transaction fees and commission charges. Interactive Brokers also offers a mobile trading app that allows you to trade on the go. 

2. Tiger 

Tiger is an advanced type of broker for many starters. It is regulated in Singapore and provides seamless services to traders. The broker offers a great user experience through its seamless platform. The KYC process is quick as it is powered by the AI tools.  The broker enables you to trade stocks and CFDs with a low commission and no hidden charges. 

3. Mitrade

Mitrade is a stock CFD broker that offers a simple and intuitive platform that meets the needs of both active traders and short-term investors.  The main (CFD) products cover basic global financial markets such as forex, US stocks, indices, commodities (including gold, energy, etc.), and cryptocurrencies. They provide 0 commissions, transparent low spreads, and low overnight interest, allowing you to enjoy low-cost investments.

If you want to trade US stocks, the Mitrade app is a simple way to trade US stocks. You will get direct market access and go long or short on rising and falling markets.

3.  Check All the Requirements

You don't have to be a US citizen or be in the US to buy and sell US stocks. Opening a US stockbroker account is simple and can be done online. 

    ● Visit your preferred stock broker website and register.

Identify an online trading account that offers US stocks and sign up. Ensure that you complete your profile by providing your accurate details.

    ● Deposit cash into your trading account.

There are many ways of depositing cash into the account. However, go for the method that is compatible with your account.

    ● Open an Order

You can either open a buy or sell order depending on the action you want to take. If you believe that a stock will be profitable in the future, open a buy order. Alternatively, open a sell order if you think that the price will drop.

It is crucial that every investor understands the tax implications of investing in US stocks. 

Most Stock trading accounts will classify you as a non-resident alien if you are not a US citizen, don't have a green card, or don't live in the US. However, some of your income from your stock trading account may still be subject to taxes by the US's Internal Revenue Service (IRS).

If you have a US stockbroker account, then you may receive the following income:

   - Capital gains – gains from the sale of stocks/ETFs and Options at a profit.

   - Dividend – distributions from EFTs and Companies.

   - Interest – income from fixed-income instruments & un-invested cash

Capital gains are not taxed if you were in the US for less than 183 days during the tax year. All the other taxes are taxed at 30% or as per the Tax Treaty Agreement. 

The US and the Philippines have a Tax Treaty Agreement. The following rates will therefore apply:

Your stock broker withholds taxes on dividends and interest. These are final taxes and cannot be availed for graduated tax rates.

Investing in US stocks can be a smart way to diversify your investment portfolio, and as a Filipino trader, you have several options for investing in US stocks. 

By following the steps outlined in this guide, you can invest in US stocks and potentially benefit from their long-term growth potential. 

If you don't know where to start, you can open a MiTrade account and start practicing on a demo account today if you don’t want to begin with your capital. 

So why not explore the US stock market today and see how it can benefit your investment portfolio?

What does Mitrade offer? 0 Commision, Low-spread, Direct market access on shares
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