Buying stocks is one of the popular investment tools. Investors can trade on foreign exchanges as well as local exchanges. We have prepared a basic guide for those who want to invest in US stock markets.

If you are an investor based in Turkey, you can buy shares from the US stock exchanges. There is no legal impediment in this. You can easily conduct your stock market transactions by choosing a domestic or foreign brokerage house. If you choose a foreign brokerage firm, you may need to transfer money internationally.

Wise can assist you in depositing and withdrawing funds from US based platforms .

Thanks to the multi-currency account , you can obtain dollar account information .

  • You can receive the dollar sent to you from America without interruption.
  • You can send dollars to your brokerage house in the USA from your USD balance in your multi-currency account with a flat fee of 0.51 USD .

You can convert this money in your account to Turkish Lira at the real market rate and transfer it to your bank account in Turkey. You can think of the real market rate as the exchange rates you see on Google. For detailed information, you can take a look at our article titled Opening a Bank Account in the USA While in Turkey.

How to invest in US stock market?

Many investors trading in local stock markets may open up to foreign stock exchanges to obtain a more balanced income and to diversify. When it comes to foreign stock markets, one of the major investment hubs is the US.

There are two major stock exchanges in the US today: the NYSE and the NASDAQ. Shares of many companies operating in various sectors such as technology, industry and retail are traded on these stock exchanges. Most of these companies operate on a global scale. Large gains as well as losses in trading stocks attract many investors to the US stock market.

If you want to buy shares on the US stock market, you need to work with a brokerage firm. If you choose a licensed intermediary institution, you can buy and sell stock safely. You can choose domestic or foreign companies as an intermediary for your stock market transactions.

You may browse the CMB website to learn about licensed domestic intermediary institutions. Work permits of intermediary institutions in Turkey are subject to the approval of the CMB.¹

If you are going to work with a foreign brokerage firm; You can find out whether it is licensed or not by researching the institute’s website, stock exchange or the Internet. For licensed brokerage firms operating in the United States, you can browse the pages of institutions such as FINRA or SIPC. These two organizations are large organizations that have brokerage houses in the United States as members.

The entity you are considering obtaining online services to invest in the US stock markets may be located in the United States or any other country. the important thing is; Being licensed and trusted, fulfilling your buy and sell orders.

As a citizen of the Republic of Turkey, let’s give examples of institutions where you can get online brokerage services to buy stocks in the USA.

  • Interactive Brokers
  • ZaksTrade
  • tatsyworks
  • Charles Schwab International
  • Saxo Bank (based in Denmark)
  • TradeStation Global (UK based)

Of course, you can find many brokerages from the United States and other countries. Each brokerage house may differ in terms of commission, lower limit, membership etc.

Another important thing to keep in mind is taxation. Be sure to consult a tax professional about how your income will be taxed. The way you are taxed may vary due to bilateral agreements between countries or the country of which you are a citizen. Be sure to find out with your brokerage firm whether you have to pay dividend tax in the USA or if you are tax exempt.

trading on the american stock market

We mentioned that you need a brokerage firm to trade in the US stock market. After selecting the institution you can create an account for yourself and start trading. It can be beneficial for you to carefully follow the analysis, balance sheet publications and reports about the stock you are planning to buy. Important documents like reports can be submitted in English.

As of 08.9.2021, Borsa Istanbul is open between 09.30 and 18.10, while the US stock exchanges trade between 16.30-23.00 Turkish time. When the Borsa Istanbul trading hours are over, trading continues on the US stock exchanges. You will also need to track your US stocks in addition to working hours in Turkey.

While the world’s two largest US stock exchanges (NYSE and NASDAQ) are valued at $47.41 trillion, Borsa Istanbul is worth about $237 billion. Companies operating globally can raise investments from around the world by offering their shares on American stock exchanges. When you are doing your transaction in TL in Borsa Istanbul, you need to do it in USD in USA. You may incur additional gains or losses due to exchange rate fluctuations. Even if you can transfer your money in TL to your brokerage house, you may still have to keep your money in dollars. Not every brokerage house may allow Turkish Lira transfers.

At this stage, the USD account information that you will get from Wise may come in handy. Using your USD account information, you can receive dollar transfers from USA without any interruption.

Buying stock from NASDAQ

NASDAQ is the second largest stock exchange in the United States and the world. Transactions are done electronically.

How to buy stock from USA? What should you do?

  1. Identify your brokerage firm. This brokerage house can be a company that is allowed to trade in a domestic or foreign stock market. You can make your choice by evaluating many points such as commission rates, account opening lower limit, membership terms, transaction channels (desktop, mobile, etc.) and the services they offer.⁶
  2. Open an account. You must verify your credentials when opening an account. For this, your identity card or passport is required. You may be asked for your invoice (electricity, water, natural gas, etc.) to verify your residence address. You may be asked about your income and taxation information. It will be beneficial for you to get support for tax procedures. You should also determine your account type. Brokerage houses may charge different fees or offer different services depending on the type of account to be opened.
  3. Choose your stock. Examine stocks and market movements using your broker’s web or mobile tools. Follow closely the stocks you want to buy and examine the relevant reports. You can also request extra consultancy service from your institution.
  4. Deposit the amount you have decided to invest in the platform of your choice. You can see the transaction fee transparently with the calculation tool below .
  5. Get your stock. After deciding on the stock you want to buy, determine the amount you will buy. To buy, you need to give an order to your brokerage firm. You can buy at the current price by placing a market order , or you can request a purchase if the stock reaches a certain price by placing a limit order .
  6. You can improve your portfolio by diversifying your stocks.

You may want to transfer your balance in your brokerage house to your account in Turkey.

In such a case, international money transfers made with the traditional banking method may cause additional costs. At this point , Wise can be a useful solution.

The multi-currency account allows you to withdraw the dollars in your balance to your multi-currency account without interruption , excluding the fees that your brokerage house will charge . Then you can convert your money to Turkish lira and transfer it to your bank in Turkey.

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