What should I consider if I want to trade US stocks?
There are several platforms that allow you to trade stocks from the United States particularly. You should take into consideration factors like what access you have to the markets, platform charges are more importantly cost per trade.
What are the platforms available for me to trade US stocks?
Here are some of the best platforms you can use to trade US stocks.
SAXO Capital Markets – Ideal for new investors
If you are a beginner and starting out to invest in the US market, this platform is a great place to start. You only pay 0.04%-0.06% in commission per trade and a minimum of USD $4 per trade. This is well below the market average while you have a 20-days trial period so that you get used to the tools and applications on SAXO.
TD Ameritrade – Cheap and intermediate investors
This platform is the one that gives you the lowest fees for trading. In fact, you do not need to pay any administrative or commission fees for trading. There is no minimum fee too. All you need is to have a minimum amount deposited into your account. If you have more than USD$25,000, you can enjoy an unlimited number of day trades.
Tiger Brokers – Low Price for new and intermediate investors
Perhaps one of the most popular online trading platforms in Singapore, it is also one of the cheapest platforms. Through Tiger Brokers, you will get live prices of the US market as well as Singapore. For the US market, the Tiger Brokers fee is USD$0.01 and a minimum commission of USD$1.99. For the Singapore market, the Tiger Brokers Fee is S$0.08 and a minimum commission of S$2.88.
Interactive Brokers – For intermediate and experienced investors
This platform is ideal if you have been investing for some time and looking for a new and more intuitive system. Interactive Brokers give you access to a broad range of markets and products. Besides US stocks, you can also trade securities, futures, fixed income securities, warrants, indices and ETFs, among many others. Trading fees are low and affordable where they charge you USD $0.0035 commission and USD $0.35 minimum fee per trade. Do take note that they have a monthly active fee as well, which can influence the amount you pay.
How do I choose which online brokerage to use?
When choosing your online brokerage to trade in the US market, consider:
- Fees – The best way to start is to compare the fees. This will directly influence how much you will spend when you invest in stocks. Take into account the platform costs which is how much you pay for every trade carried out. Besides that, you must also take into consideration the initial amount you need to have in order to start trading. The Prime account on Tiger Broker does not require any minimum deposit while Saxo Markets require you to deposit a S$3,000 amount beforehand. And then, there are administrative fees. Comparatively, TD Ameritrade does not have any while Interactive Brokers will charge you a certain percentage.
- Markets – Apart from fees, you must also look into the markets that you have access to. You might be focused on the US stocks market but when you have more options to consider, it could expand your financial portfolio into other money markets.
- Features – The platform should be user-friendly so that you can navigate easier when you trade. Take note that the more markets the platform offers, the more you will need to learn and you should be able to recognize these functions when you start trading instead of muddling around for too long.