The United States is home to some of the biggest companies on earth, companies that have yielded lucrative returns for their investors. This is a guide on how to invest in US stocks from South Africa.
Investing in US stocks can seem intimidating when you are in South Africa. How do you even go about it? Do you have to pay expensive brokers? Is it even legal? It’s possible to invest in US stocks directly from South Africa without paying a fortune, here is how to do it.
Register with a broker
You will need a broker in order to be able to invest in US companies. Brokers can be very expensive and require you to put up a lot of money in minimum deposits. However, there is EasyEquities, my personal favourite. It’s a broker that is made for people like us, who don’t have a fortune to spend but wanting to participate in the stock market.
It’s also very easy to use, even more so if you are a Capitec Bank client. Simply open an EasyEquities account, it usually takes just a few minutes if you are with Capitec. You can still open it even if you are not with Capitec but you will need send your identity documents to EasyEquities.
You will get a demo account that has $10K, to use specifically for investing in US companies. This is something to use and take advantage of, you can practice buying US stocks directly using the demo. After that you will need to deposit money into your EasyEquities account.
From your EasyEquities dashboard do the following;
- Click on Invest.
- Tap on “EasyEquities USD”.
- Search for the company you want to invest in.
- Tap on it and click on buy.
- Enter the amount of money you want to spend in USD, it will automatically convert to shares.
- Click on “buy” or “buy at open”.
That’s it, that’s how easy it is to invest in US stocks from South Africa. You will get a share certificate after buying the shares, it’s usually sent to your email. You can sell these shares at any time, you can also buy ETFs that track the S&P 500.
Conclusion
This was a guide on how to invest in US stocks from South Africa. Do you have any thoughts or questions? Comment below.
