The stock market is the place where stocks are issued and connects traders to buy and sell stocks, commodities, derivatives and other financial instruments. The U.S. stock market is home to the world’s largest market capitalization and trading volume. The following article learns in detail about US stocks and provides detailed instructions on investing in US stocks and stocks for beginners.
What are US equities?
U.S. stocks are securities (including stocks, indices, commodities, etc.) listed and traded on the U.S. exchange.
The U.S. stock market is the world’s largest market by daily trading volume, with over 10,000 listed companies and a total market capitalization of more than $33 trillion. The total capitalization of the U.S. stock market is five times greater than that of China, six times that of Japan, ten times that of Hong Kong, and 15 times that of the Indian stock market. In addition, the U.S. stock market accounts for half of the global trading volume and is considered the most liquid market today.
Companies listed on the U.S. stock exchange aim to raise capital to serve manufacturing, business, and business development investment activities. The US stock market has many shares of the world’s leading companies and famous enterprises, such as Apple, Google and Tesla … Therefore, this market is very interested in stock traders around the world and preferred.
How does the US stock market work?
The stock market operates through the stock exchanges (New York, Nasdaq…). Companies list shares through the stock exchanges. US traders trade (buy and sell) stocks through an exchange. A transaction is made when the prices of buyers and sellers match.
Historically, traders had to perform on the stock exchange. Today, the stock market operates through the Internet and online stockbrokers. A trader must be a US citizen to trade the underlying US stocks. It is mandatory for people who do not live in the United States and do not have U.S. citizenship to invest in the U.S. stock market by going through a stock brokerage firm (broker).
Why invest in US stocks in Vietnam?
The U.S. stock market is currently the largest market by market capitalization globally. Therefore, the US stock market is highly liquid and reduces risk for investors.
In addition, with a huge trading volume and strictly regulated by strict and long-standing regulations, the US stock market is considered the most fair and transparent. Manipulating or manipulating prices in the US stock market is more unlikely than in small emerging markets around the world.
In addition, the US market is home to the world’s largest and most famous companies. It is an opportunity for traders to invest in companies with a long history of sustainable development, or in the world’s leading companies, with attractive long-term growth, such as Google, Microsoft, IBM and Abbot …
The U.S. stock market is also a place for potential companies, known as “unicorns,” in terms of growth rate. A typical example that can be mentioned is that Netflix shares were only around $10 in 2010, but there was a time when it peaked at $700/share (in 2021). Or Amazon shares are listed on the floor at $18, once trading at $3600 (in 2021) and are currently trading at a price above $2100. These are not uncommon phenomena in the US stock market, so this market offers many suitable long-term investment opportunities.
Two forms of US stock trading for non-US traders
Custody trading: In this form, traders ask a broker to buy and hold shares for them. With this form, the broker is the person who owns the shares. However, traders still enjoy all the benefits of dividends and profits.
Stock CFD Trading: This is the most popular form of stock trading today. When trading stocks as CFDs, the trader only makes trades based on the movement of the stock’s price, not owning it. With CFD trading, users can execute trades at both rising and falling prices by placing buy orders when they perceive that the price is rising in the future and sell orders when they perceive a possible fall in prices. In addition, traders can also use leverage when trading stocks in the form of CFDs.
Essentially, trading stocks by non-US traders enjoy all the benefits of stock price volatility as trading the underlying stock. However, traders do not have voting rights of shareholders, and trades are executed immediately after order correspondence.
Learn about the brokers that allow us stock trading.
Currently, most investors choose to trade US stocks through forex brokers, placing orders on the MT4 platform. However, for those who are new to US stock trading, the Meta Trader platform is more challenging. In addition, brokers using MT4 or MT5 platforms often offer a minimum number of shares on the US stock market.
Among today’s brokers, Capital.com is the one that offers its trading platform, which is quite intuitive and easy to understand on both the web and mobile versions. In addition, Capital.com also allows users to open an MT4 account to trade on the MT4 platform.
Many US stock traders love Capital.com with over 3600 stock CFDs and many of the world’s leading stock indices on Capital.com, such as Dow, FTSE 100, S&P 500 and DAX 30. When trading undeleted stocks without overnight fees, Capital.com can receive dividends when trading actual stocks. It is an advantage when investors want to own stocks for a long time or invest in stocks to receive dividends. In particular, Capital.com has no deposit/withdrawal fees and no inactivity fees.
How to open a US stock trading account on Capital.com?
Open a Capital.com account.
To open a US equity investment account on Capital.com, users register by following the link below:
Enter your email and password and click [Continue]. Right after that, you opened the Capital.com account successfully.
Before trading on Capital.com, users need to perform the account verification displayed on the screen step by step.
- Enter your address, nationality and place of birth and click [Continue].
- The following window enters your name (without accents) and date of birth.
- Next, enter the information about the address of residence: street name, building number, apartment, city and postal code that corresponds to the information about the documents used to verify the address (if there is no house number, apartment), family, street, fill in NA).
- Enter your phone number.
- Select the currency you want to use for your account.
- Read the terms and conditions of Capital.com and click [Continue].
account Capital.com
To upload address verification documents, go to [Settings], select [Upload Document], click the [Upload Document] box.
- An identity verification document is a 2-sided photo of the passport, identity card, citizen identification, driver’s license, etc., containing the full name, date of birth and address.
- The requested photo must be clear, capture all four corners of the document and be in the following format: PNG / JPG / JPEG or HEIC.
After uploading the required documents, Capital.com users need a facial verification. Sign in to your Capital.com account with your phone and click [Account], select [Account Status], and click [Take a Selfie Video]. Then, click [I’m ready] and follow the instructions.
Deposit money into a U.S. stock account on Capital.com
Capital.com users can deposit/withdraw funds easily through various payment gateways, including local bank, E-Wallet, and credit card. The following article guides you to recharge Capital.com by credit card. Other payment methods do the same.
After logging into your Capital.com account, click [My Account] and select [Deposit Funds] in the right corner of the screen.
Select the deposit method [Bank cards], enter the card details (card number, card expiration date, cardholder name, card type, CVV number) and amount. Then click the check mark to confirm the card owner in the [I confirm that I am the owner of the card] box and click [Deposit].
Note: The name of the Capital.com account holder and the credit card holder used must match. the regular Capital.com account requires a minimum deposit of $20 and a maximum of $900.
Open an order to buy a US stock on Capital.com.
After finding a preferred stock ticker, if the trader sees that the market may rise in price in the future, a trader can open a buy order.
- Click [Buy] in the Market window
- Enter the trading volume in the [Size] box.
- Click [Buy] to finish.
- Buy You have to open orders while the market is in working hours. Select [Place Limit Order] to place a pending order if the market is in closing time.
If the market can lower the price in the future, the user can open a short sell order (Sell) by clicking the [Sell] button in the Market window and executing the same buy order.
Conclusion
Suppose the stock market in developing countries (such as Vietnam) is still very young compared to the world. Therefore, when trading securities on these markets, investors face a lot of risks and face the risk of price manipulation or lack of transparency. In contrast, the US stock market has a huge market cap and trading volume, which makes it highly liquid. Traders also reduce the risks they may encounter when trading in this market. In addition, traders can short sell or use leverage when trading on the US stock market. These are the advantages that many traders love when investing in US stocks.