This article will be exploring how to buy US shares in Australia in 2022, kindly read through to find out. Investing in stocks is one of the most effective ways to build and grow long-term wealth.
Furthermore, technological advancements and increased competition have made purchasing international securities, such as US stocks, easier and less expensive.
The US stock market is seen as one of the world’s most aggressive yet appealing markets. Many international corporations and emerging companies with high growth potential list their stock on US exchanges. With a host of new platforms, investing in US shares from Australia has never been easier.
- You will learn how to buy US shares in Australia
- Where to buy US shares in Australia
How to buy US shares in Australia in 2022
Getting involved in the US markets necessitates the use of a broker who can place orders on your behalf. It’s no different than investing locally. However, historically, most Australians (and generally anyone outside the US) found it difficult to gain access to the US stock market – there were numerous paper forms, high fees, and numerous complications.
However, times have changed, and with the introduction of technology and niche platforms focusing on the world’s largest market, it is now easier and more affordable than ever before.
There are numerous online share trading platforms that provide US share trading. Check out the list below to see some of the providers that allow you to invest in the United States.
4 steps on how to buy US shares from Australia
- Shop around for brokers and make sure they have access to US stocks.
- Create an account by providing your basic information and banking information.
- Add money to your account by transferring money/funds from your bank account.
- Search for and select the stocks you want to invest in, then begin trading.
Below is a list of brokers definitely worth considering by Australians for trading US shares, and they include the following:
eToro is one of the world’s largest social trading platforms, providing online and mobile trading in stocks (including fractional shares), ETFs, commodities, derivatives, cryptocurrencies, and more.
Again, there is no trading commission, but there is a small currency conversion fee and an inactivity fee if you do not trade for 12 months.
Interacting with fellow investors on the social news feed and the ability to copy the moves of particularly successful traders on the platform are all part of the social trading aspect.
- Trade and invest in top financial instruments, such as a diverse range of stocks.
- CySec, FCA, and ASIC regulate eToro.
- Your funds are safeguarded by cutting-edge security protocols.
Since 2017, Stake has been operating in Australia. It provides commission-free online trading in over 3,500 US stocks and ETFs through a user-friendly UI and mobile app. It is possible to invest in fractional shares.
Although there is no trading transaction fee, you will be charged a small forex fee plus a USD 2.00 withdrawal fee when you deposit or withdraw AUD into or from your USD account. This is a fairly common practice among online brokers.
For experienced investors looking for advanced features, a premium account with a monthly fee is available.
- Get a $10 bonus when you fund Stake Australia or a FREE US stock when you fund Stake Wall Street. Do both, and you will receive both rewards.
- Trade over 8,000 ASX and US stocks and ETFs in seconds.
- Simple, straightforward pricing with no hidden costs.
The most recent arrival is a superhero. Australian-made share trading platform that offers young people affordable access to Wall Street, simple graphs, an app, and a web app.
- Create an account for as little as $100, and you can begin investing right away with $5 flat-free brokerage (or $0 on US shares) on share trades.
- Trade unsettled funds as well as buy and sell US shares and ETFs with no brokerage fees.
- Use PayID to fund your account quickly and take advantage of real-time FX transfers for trading US shares.
SelfWealth is a little different because it allows Australians to invest in US and Australian securities on the same platform. The minimum trade amount is $500, and there is a low flat fee of $9.50 per transaction that must be paid.
Similar to its rivals, SelfWealth provides both a free basic account and a premium account for experienced investors (with free access to the latter for the first 90 days after opening an account). To finance US trades, a small currency conversion fee must be paid.
- You can open a free individual, business, trust, SMSF, or a joint account.
- Offers commission-free trading; there are no account fees, and you’ll never pay more than $9.50 in brokerage.
- Trade with assurance using free trading tools, such as live pricing and market depth.
Haven talked about how to buy US shares in Australia and also listed some of the best brokers you can use to purchase these shares; share your view with us in the comment section below.
Tax implications of buying US shares in Australia
When you receive your dividends, you might be required to pay the US government a 15% withholding tax. Typically, you can claim this back when filing your taxes, but you should consult with a tax advisor or accountant first. Second, US shares, like ASX shares, are subject to Australian capital gains tax.
Do I have to pay tax if I buy US stocks?
After holding the stock for 20 months, if you made a profit of $100, it would be considered a short-term capital gain, and you would be required to pay tax according to the income tax bracket you are in.
Can I buy US shares in Australia?
You must create an account with a broker like eToro in order to begin purchasing American stocks from Australia. Downloading and signing up for the eToro stock trading app only takes a few minutes. To create your account, you will require identification.
You can learn more from the video below:
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