How to speculate in U.S. stocks in the country: The latest guide for 2023
In recent years, with the increasing awareness of global investment, more and more domestic investors have begun to pay attention to the US stock market. The U.S. stock market attracts global investors with its high liquidity, mature mechanisms and high-quality companies. So, how do domestic investors participate in US stock trading? This article will give you detailed answers.
1. Legal ways to speculate in U.S. stocks domestically
Currently, there are three main legal ways for domestic investors to speculate in U.S. stocks:
| Way | advantage | shortcoming |
|---|---|---|
| Through the QDII channel of domestic securities companies | Funds are safe and guaranteed | Investment targets are limited and handling fees are high |
| Open an account through a Hong Kong brokerage firm | Rich varieties and flexible transactions | You need to go to Hong Kong to open an account, and it is troublesome to transfer funds abroad. |
| Open an account through an Internet brokerage firm | Convenient account opening and simple operation | Need to choose a formal platform |
2. Basic knowledge of US stock trading
Before you start trading, it is important to understand the basic rules of the U.S. stock market:
| project | illustrate |
|---|---|
| trading hours | Beijing time 21:30-4:00 the next day (summer time) |
| Minimum trading unit | 1 share |
| Price limit | No price limit |
| billing cycle | T+2 |
3. Detailed explanation of account opening process
Taking Internet securities firms as an example, the account opening process is usually as follows:
1. Choose regular brokers: such as Interactive Brokers, Tiger Brokers, Futu Securities, etc.
2. Prepare account opening materials: ID card, bank card, address proof, etc.
3. Submit application online: fill in personal information, risk assessment, etc.
4. Approval: usually takes 1-3 working days
5. Deposit transaction: deposit via bank transfer
4. Key points of fund management
| project | Things to note |
|---|---|
| Deposit | It is necessary to purchase foreign exchange through a bank and then remit it, with a limit of US$50,000 per person per year. |
| Withdraw funds | When funds are returned via the original route, you must pay attention to foreign exchange control policies. |
| Exchange rate risk | Fluctuations in the exchange rate between the US dollar and the RMB will affect actual returns |
5. Recent popular U.S. stock investment opportunities
According to recent market hot spots, the following sectors are worthy of attention:
| plate | Represents stocks | Reasons for concern |
|---|---|---|
| AI | NVIDIA (NVDA), Microsoft (MSFT) | AI technology breakthrough drives industry growth |
| new energy | Tesla (TSLA), First Solar (FSLR) | Global energy transition trends |
| Biotechnology | Moderna (MRNA), Gilead Sciences (GILD) | Medical innovation continues to advance |
6. Risk management suggestions
Although there are many opportunities for U.S. stock investment, the risks cannot be ignored:
1. Time difference problem: U.S. stock trading hours are in the evening Beijing time, so you need to arrange your work and rest accordingly
2. Market volatility: There is no limit on the rise or fall of U.S. stocks, and single-day fluctuations may be large.
3. Tax declaration: Investment income must be declared and taxed in accordance with regulations
4. Platform risks: Choose a regulated, formal platform to avoid potential financial security risks.
7. Summary
Speculation in U.S. stocks provides domestic investors with opportunities for global asset allocation, but it also faces many challenges. It is recommended that investors fully understand the relevant rules before entering the market, choose an investment method that suits them, control risks, and invest rationally. For novices, you can start with a small amount of capital and gradually increase the investment amount after accumulating experience.
Remember, investing is a long-distance race, not a sprint. In the mature market of the U.S. stock market, value investing and long-term holding concepts can often bring better returns.
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