Best Investment Brokerage Platform for US Stocks 2025

The stock market is volatile where stock prices can change from yearly to even in minutes. A way to profit off stock investments is to sell the stock when the share price increases.

The profits made is known as “capital gains”. On the other hand, a loss made is termed as “capital loss”. The US stock exchange allows for high potential returns as some of the dominant US companies worldwide such as Apple and Alphabet (Google) have their stocks listed on the US stock market.

Investors invest in foreign stocks for various reasons such as diversification in terms of geographic location and to expand their investment portfolio to include exposure into the different markets around the world.

One common market that investors would consider would be the US stock market, where typically you can trade on NYSE, NASDAQ and sometimes AMEX too.

It's no secret that the US is home to a thriving ecosystem of high-growth sectors, particularly in technology, healthcare, and AI, with innovation hubs like Silicon Valley at the forefront.

Moreover, with nearly US$100 billion in venture capital funding pumped into defence tech startups, the growth potential and profitability margin in these sectors are undeniable.

Evidently, investing in US stocks means that you'll need to invest in USD. You'll need to be mindful of the prevailing SGD to USD conversion rate whenever you trade, subject to exchange rate fluctuations.

But how does this affect your potential returns? Well, if the USD weakens, this reduces your profits when converting back to SGD.

The US imposes a 30% withholding tax on dividends for foreigner investors. This high tax will definitely reduce your effective yield on dividend returns.

Some online brokerages in Singapore (e.g. DBS Vickers) impose higher fees for trading in US stocks.

Not only are there no capital gains for foreign investors, but if you pass away while holding US stocks, an estate tax (up to 40% of asset above US$60,000) will apply–which is definitely costly.

A popular strategy to circumvent this is to invest in Ireland-domiciled ETFs such as the S&P500 ETFs listed in London.

When owning shares, it indicates that you have partial ownership of the company you have invested in. You can earn returns from investing in shares via dividends paid out by the company or selling of the shares when the share price is higher than it is bought at.

ETFs are a collective investment where you invest in a basket of stocks (or bonds).

An ETF aims to track a particular index. For example, the SPDR S&P 500 Trust ETF tracks the S&P 500 Index. The returns of an ETF are meant to match the index that it tracks. So if you're risk averse and are against stock-picking, consider investing in ETFs instead.

Mutual funds (also sometimes known as Unit trust) are actively-managed investment tools. It is a collective investment similar to an ETF. However, it does not track an index unlike an ETF.

A mutual fund is a professionally managed investment fund that pools money from many investors into a common portfolio.

There are many stock exchanges worldwide and it can be a form of diversification when you invest in stocks from different countries. If you have plans to but do not want to be limited to the US stocks, you may prefer to find a broker that has access to not only the US market but also securities in other countries' markets.

Different brokerages have different platforms such as websites and mobile apps. It would be advisable to pick brokerages with platforms that you are more familiar or comfortable with. Do also take note of the interface and how user friendly are the platforms and it will affect your overall trading experience.

While selecting your preferred brokerage account, consider what you are planning to invest in. If you want to invest in other asset classes such as in currency (FOREX), CFDs, gold, bonds, you would then consider finding a broker that allows you to invest in these investments.

One of the most common concerns when choosing a brokerage firm is the fees. There are various types of fees but there are two that most would take note of.

Firstly, there is commission fee, which is the fee charged for every transaction. This is especially important for those who trade frequently.

Another would be the minimum fee which is essentially the minimum fee charged regardless of the amount invested. This is usually a concern for small time investors.

Using an online brokerage is largely an independent process, but there may be times where you require assistance and clarification. Given the time difference between Singapore and the US, having 24/7 customer support via a hotline or live chat becomes highly beneficial.