By opening an account at an American brokerage, investors gain access to shares of innovative companies such as Amazon, Tesla and Netflix. See why consider this option.
There are several reasons that have led Brazilians, Mexicans, Nigerians and people from other parts of the world to invest in the American stock market.
Diversifying the portfolio, finding more profitable alternatives, and reducing exposure to one’s own country risk (especially in times of economic instability) are just some of the reasons that have brought investors closer to Wall Street.
The good news is that the arrival of brokers like Passfolio ended up making life easier – a lot – for those who want to open an account in the United States and trade directly on Nasdaq and NYSE, which are among the largest stock exchanges in the world.
We list below some of the advantages of going to the American stock exchange. Check it out:
1. Diversified Portfolio
Do you know that maxim of not putting all your eggs in one basket? It still holds. Diversifying your investments is still one of the best ways to manage the risks of invested capital, especially in times of economic instability.
One example: rising oil prices may be good for solar panel makers, but bad for airlines, which need to buy fossil fuels.
Therefore, investing in the American market allows not only geographic diversification, but also the choice of different products, sectors, risk levels and maturities (short or long term), according to the investor’s profile and strategy.
Please remember that diversification is not an investment strategy without risk, and in certain circumstances, it may not fit your investment objectives.
2. Big Techs at your fingertips
Investing in the United States means having direct access to shares of innovative companies such as Tesla (TSLA), Apple (APPL) and Amazon (AMZN), giants that are not traded in other countries like Brazil.
For example, while B3, the Brazilian stock exchange, has around 400 companies listed and moves around US$ 6 billion a day, Nasdaq moves daily, approximately US$ 262 billion in shares of almost 3,000 companies. The numbers alone show the advantages of investing without borders.
3. Small partners of large companies
Until recently, investors had to be qualified (and shell out hundreds of thousands of dollars) to invest in the American stock market.
With brokers such as Passfolio, which offer a global investment marketplace, it is possible to buy fractional shares from giants such as Facebook (FB), Alphabet (GOOGL) and Netflix (NFLX) for as little as US$1 from anywhere in the world, via web or app.
Please read our fractional shares disclosure before investing in fractional shares.
4. Invest with regulated brokers
The investor can also have easy, fast and secure access to regulated brokers.
Passfolio Securities, for example, is a member of FINRA and SIPC, Securities in your account protected up to US$500,000. For details, please see http://www.sipc.org.
5. No commission fees, no bureaucracy
Keeping an eye on the clients’ needs, some brokerages already offer the option of investing in the United States without charging a commission fee¹² and, in addition, they provide all the support for international investors to declare their income tax., investments made on the American stock exchange.
So, ready to land on Wall Street?
Invest in US stocks with Passfolio
With Passfolio Securities, you can start investing in US stock with as little as US$1 – with no commission fees¹². We make investing in US assets accessible and even accept local deposit methods such as TEDs.
¹ Please see our fractional shares disclosure.
² Securities less than US$5 cost US$0.02/share. Please see our disclosures on other charges.
*All stock trades that exceed the US$1M limit will cost the largest of: 0.1% or US$0.02/share
Please read important legal disclosures that apply to your relationship with Passfolio.
Always keep in mind that all investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for their own particular situation before making any investment decision.
Passfolio does not provide tax advice. Where specific advice is necessary or appropriate, Passfolio recommends that you consult with a qualified tax advisor or investment manager.