HOW TO INVEST: Outside Of USA (Non-US Resident)

TL;DR

Learn how to invest in the U.S. stock market when you are from outside the United States, with a focus on three different brokerages: Firstrade, eToro, and DEGIRO.

Transcript

• How's it going today, guys? Welcome back to the channel, hope you're having a great day so far. So in this video today I'm going to be answering one of the questions that I've been getting on almost a weekly basis for the last two years and I apologize it's taken me this long to make this video. What we're going to be talking about today is how t... Read More

Key Insights

• 👍 Firstrade is the recommended choice for non-U.S. residents due to its zero commissions, no minimum balance, and availability to investors from approved countries.
• 😒 eToro allows trading in various assets, but it uses CFDs, which are speculative and come with higher risks. Only investors from certain countries can participate.
• 💗 DEGIRO is a growing brokerage platform that offers different options for investors, depending on the country. Investors should understand if they are buying stocks or trading CFDs.
• 🔬 The main challenges for non-U.S. residents investing in the U.S. stock market are regulatory and taxation issues.
• 😚 Investing in CFDs should be approached with caution, as they are a pure speculation and a high percentage of people end up losing money.

Questions & Answers

Q: What is Firstrade and why is it recommended for non-U.S. residents?

Firstrade is a zero commission brokerage with no minimum account balance. It allows non-U.S. residents from approved countries to invest in the U.S. stock market without needing a Social Security Number or Tax Identification Number.

Q: What is the main difference between Firstrade and eToro?

Firstrade allows investors to own the underlying assets, while eToro uses CFDs, which means investors don't actually own the stocks but speculate on their prices. This comes with higher risks and is not recommended for inexperienced traders.

Q: Can investors from all countries participate in eToro?

eToro participates with about sixty different countries, but it is not allowed in the United States. It is advisable to check eToro's website for a complete list of countries they are allowed to participate in.

Q: What should investors consider before using DEGIRO?

DEGIRO is different from Firstrade and eToro, as it offers both options of buying the underlying stocks and trading CFDs, depending on the country. Investors should research and understand if they are trading actual stocks or CFDs.

Summary & Key Takeaways

• Firstrade is a recommended brokerage for non-U.S. residents to invest in the U.S. stock market, with zero commissions and no minimum account balance.

• eToro is a popular trading app available in many countries, but it uses Contracts for Difference (CFDs) instead of owning the underlying assets, which comes with higher risks.

• DEGIRO is a growing brokerage platform that offers both options of buying the underlying stocks or trading CFDs, depending on the country.