Investing in U.S. stocks has become increasingly accessible for Singaporean investors, thanks to platforms like Tiger Brokers. If you’re considering diving into the U.S. stock market, here are some essential points to keep in mind.

Minimum Trading Unit for U.S. Stocks

One of the significant differences between trading U.S. stocks and local shares (like A shares or HK stocks) is the minimum trading unit.

– U.S. Stocks: The minimum trading unit is 1 share. This flexibility allows investors to buy fractional shares, making it easier to invest in higher-priced stocks without needing substantial capital upfront.

– A Shares & HK Stocks: In contrast, these markets generally require investors to purchase in lots, which can be more capital-intensive.

This distinction makes U.S. stocks more approachable for individual investors looking to diversify their portfolios.

Price Movements of U.S. Stocks

Another critical aspect to consider is how price movements of U.S. stocks differ from those of A shares.

– No Price Limits: Unlike A shares, which have daily price rise and fall limits, U.S. stocks can experience significant price fluctuations throughout the trading day. This means investors need to stay vigilant and monitor their investments closely.

– Volatility Awareness: The absence of price limits can lead to increased volatility, so it’s essential to have a strategy in place, whether you’re day trading or holding long-term positions.

Conclusion

Investing in U.S. stocks in Singapore through platforms like Tiger Brokers opens up a world of opportunities for Singaporean investors. With the ability to trade in single shares and the absence of price limits, it’s crucial to stay informed and proactive in managing your investments. As you embark on this journey, remember to conduct thorough research and consider your risk tolerance to make informed decisions in the dynamic U.S. market.