How to Invest in US Stocks from Singapore (Step-by-Step Guide)

Singapore’s stock market raced to new highs in June 2026. 

Yet, over the past decade, the local market’s returns have lagged the US stock market’s.

Then again, should investors even bother with businesses located half a world away? 

So here’s the thing: if you add up the value of all the businesses listed on the US stock market, it would be close to US$75 trillion, making it the world’s largest stock market. 

Because the US is the world’s biggest economy, its stock market is home to a far larger universe of businesses that provide more stocks for investors to consider. 

Still, there are merits to investing in the local market. 

For starters, it boasts the largest real estate investment trust (REIT) market in Asia outside Japan and is increasingly becoming a global REIT hub. 

The Singapore market also has a vibrant financial sector anchored by prominent local banks that have delivered strong – and at times, superior – shareholder returns compared with their US peers. 

Yet, the question remains: where should investors invest — Singapore or the US? 

In our view, the goal is not to choose between the Singapore and US markets, but to make the best of both worlds.

That could be daunting for new investors, so let’s walk through the process.

Step 1: Understand Why Investors Buy US Stocks

The US market offers direct exposure to the largest market-leading companies such as Alphabet (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Nvidia (NASDAQ: NVDA).

The appeal of the US market goes beyond these popular brands. 

It also offers exposure to fast-growing sectors such as technology, communications services, and healthcare. 

These sectors are underrepresented in the Singapore market, which is dominated by finance and REITs.

Diversifying across these fast-growing sectors arms investors with broad-based growth opportunities instead of leaving them reliant on a couple of industries.

Another advantage is scale.

Because it is the largest and most liquid capital market in the world, buying and selling shares in the US is highly efficient, where orders are quickly filled at the desired price with little slippage.

The US also hosts the world’s largest exchange-traded fund (ETF) market, providing the option for investors to invest in diversified ETFs instead of picking individual stocks.

The advent of modern digital brokers, regulated by the Monetary Authority of Singapore (MAS), has also made owning a piece of the American pie much easier than before for Singaporeans.

However, some risks exist.

For example, the rise of the Singapore dollar against the US dollar could act as a drag on your returns when you convert your US dollar profits back to Singapore dollars.

Moreover, US stocks tend to trade at higher earnings multiples, which might be undesirable for value investors looking for undervalued stocks.

Individual US stocks can be more volatile than their Singapore-listed counterparts – which may spook jittery investors.

Still, the US market, with its exposure to novel, world-class businesses, remains compelling for long-term growth-oriented investors.

Step 2: Choose a Brokerage Account

If you are transferring hard-earned money into a brokerage account, you will want the broker platform to be safe.

But what is “safe”? 

In Singapore’s context, the broker should hold a Capital Markets Services (CMS) licence issued by the MAS.

Having this licence means the broker is required to segregate your money from its own, providing a layer of protection for your assets should the broker go bust.

Fortunately, investors can easily verify their broker’s licence on MAS’s Financial Institutions Directory.

For most investors, Interactive Brokers (NASDAQ: IBKR) is arguably the go-to platform, thanks to its low fees, wide market access, and sophisticated trading features.

For investors looking for a simpler investing experience, Moomoo SG or Tiger Brokers may be considered for their relatively simple apps and other user-friendly tools.

Step 3: Fund Your Account

Funding your account in Singapore dollars has become much easier than before. 

Many Singapore-licensed digital brokerages have made the funding of accounts possible through Singapore-based payment infrastructure, making it cheaper and faster for their clients.

Here are some common funding options for local Singapore dollar transfers (from Interactive Brokers):

• Direct Debit Authorisation (DDA) / eGIRO – All you need is a one-time setup that links and authorises your bank account to transfer funds to your brokerage platform. This setup allows Singapore dollar deposits to be initiated directly from the broker, often within minutes.
• FAST (Fast and Secure Transfers) – Alternatively, if you prefer to transfer Singapore dollar funds manually from your bank account to the broker’s designated bank account, FAST can do it near-instantly. Note that a “deposit notification” might be required by some brokers before the transfer.
• PayNow (through UEN or QR code) – If entering account numbers manually feels uncomfortable, you can consider PayNow funding. Investors simply enter the broker’s UEN or scan a QR code to initiate the transfer.

While upfront Singapore dollar transfer costs have been greatly reduced, investors should watch out for other costs such as foreign exchange spreads when converting Singapore dollars to US dollars.

To minimise these fees and additional costs, avoid small, frequent transfers. 

Accumulate and plan your transfers in lump sums.

When in doubt, always refer to your brokers’ official instructions to ensure error-free transfers, especially when transferring funds for the first time.

Step 4: Learn the Basics Before Buying US Stocks

Know your basic order types before you get started. 

For starters, here are two main types:

1. Use market orders when you want the order filled immediately, at the best available market price. While execution is immediate, your order might not be filled at your desired price. The question is: are you okay with letting the market decide your buying and selling prices?
2. Use limit orders when you want to tell the broker to execute the trade at a specific price, or better. This is usually preferred as it protects investors from purchasing at temporarily inflated prices and selling at unusually depressed ones.

Beyond basic orders, investors can take advantage of fractional shares – a common feature of modern brokers. 

Here’s the thing about fractional shares: to buy shares in a massive company like Meta Platforms (NASDAQ: META) trading at more than US$550 per share today, you can start with as little as US$1 using fractional shares – suitable for younger investors without a regular income. 

Make sure you understand the businesses thoroughly.

Going through these pointers might help:

• Is the company consistently growing its revenue, operating cash flow, and free cash flow (FCF)? 
• Does the company possess a clear competitive advantage that shields it from competition?
• Eyeing one of the AI infrastructure beneficiaries? While these tech companies are spending massively on chips and data centres, only a handful of them are likely to do so sustainably. You should only own the ones that can afford the spending without going broke.

Step 5: Start with Strong, Understandable Companies

If you are new to investing, stay away from “penny stocks” or speculative businesses.

Established companies with reliable earnings should be the bread and butter of your portfolio. 

Fortunately, the leaders stand out clearly:

• Apple (NASDAQ: AAPL): The iPhone maker is a global consumer brand with a sticky ecosystem of devices and services that generates strong cash flow.
• Microsoft (NASDAQ: MSFT): A software and cloud giant with recurring revenue from products that businesses rely on every day — think Microsoft Word and Excel. 
• Alphabet: The owner of Google, Android, and YouTube, with a dominant advertising business and a growing cloud segment.
• Amazon (NASDAQ: AMZN): An e-commerce leader with an unmatched logistics network. It also boasts a highly profitable Amazon Web Services (AWS) cloud business powering its long-term growth.

Financially, these businesses enjoy sustainable margins and massive cash reserves, providing financial durability to ride out potential headwinds.

Step 6: Understand US Dividend Withholding Tax

Here’s the rub: Uncle Sam wants a piece of your returns.

And that’s a 30% cut from every dividend you receive from US stocks. 

Investors in some countries pay a lower rate thanks to tax treaties with the US. 

Singapore has no such treaty.

Hence, expect to receive only US$70 even if the company declares a US$100 payout.

The good news is that in some cases, Singaporean investors can still benefit indirectly from other countries’ tax treaties with the US.

Suppose you intend to buy an S&P 500 ETF. 

Consider Ireland-domiciled ETFs like the iShares Core S&P 500 UCITS ETF (LSE: CSPX) listed on the London Stock Exchange instead.

The result? 

Dividend withholding tax drops from 30% to 15% thanks to the US-Ireland tax treaty working in your favour.

That’s not the only benefit.

When you pass on, the US estate tax can reach 40% of the value of US stocks above US$60,000.

This tax does not apply to “non-US assets” like Ireland-domiciled ETFs. 

Step 7: Build a Long-Term Investing Habit

Here’s a mantra to remember: “time in the market” usually beats “timing the market”.

And dollar-cost averaging (DCA) can help you stick to the former.

Simply by investing a fixed amount every month in a passive index fund, you will be mechanically buying more when the price is low and less when it’s high.

If you struggle to discipline yourself to stick to the DCA routine, automate it.

1. Establish a standing instruction to perform a regular transfer of funds to your broker immediately after receiving your paycheque.
2. If your broker offers “Regular Savings Plans” to buy stocks for you automatically every month, consider using them.
3. Minimise the fees associated with each trade. For example, if your broker charges a flat fee per trade, consider buying less frequently and increasing the amount invested per trade. 

Avoid buying on hype. 

Every other day, you are likely to come across new AI-related stocks that look like an early-stage Nvidia. 

Always scrutinise the business. 

Otherwise, randomly picking the next trillion-dollar winner is more speculation than disciplined investing.

Transactions that are “zero-commission” are not always free, despite what promotional messages suggest.

Often, hidden costs result in less-than-optimal execution prices.

Long-term investors can mitigate these costs by not trading too frequently.

Get Smart: The World’s Your Oyster

Thanks to modern fintech tools, investing in the US market is simpler than most people might expect.

After you’ve picked your favourite MAS-regulated broker, load up on Ireland-domiciled ETFs that track the US market.

With these non-US ETFs forming your core holdings, your returns are enhanced by lower dividend taxes.

With your core holdings established, turbo-charge your returns by picking a few quality tech giants as satellite holdings in your portfolio.

Automate the funding and buying process to maintain a consistent DCA routine that grows your portfolio over time.

Don’t forget to update your W-8BEN form so that your broker can maintain the correct foreign tax documentation record.

Get smart by staying disciplined and owning a piece of the American growth story instead of restricting yourself to the Singapore market.

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Disclosure: Larry L. owns shares of Alphabet, Amazon, Apple, Meta Platforms, Microsoft and Nvidia.