What is common between an iPhone, Windows OS, a Big Mac Burger, and a Tesla Model S?
All of these products that are so popular in the Middle East have their parent companies, Apple, Microsoft, McDonald’s, and Tesla, located in the US. Moreover, as these are public-traded companies, one can invest in the shares of these global brands to benefit from their growth.
Home to the New York Stock Exchange, the largest stock exchange in the world, the US offers one of the most rewarding stock investment opportunities. Thanks to digitalization, even the Middle East nationals and ex-pats can now invest in US stocks. Continue reading to know how-
How to Invest in US Stocks from the Middle East?
To start investing in shares of US companies like Apple, Google, Microsoft, Tesla, and more, from the Middle East, you will need an international trading account. There are now a few international stockbrokers in UAE that you can consider for opening your trading account. Any adult Middle East national or expat can open a trading account by completing the online formalities.
Once the trading account is activated, make a deposit, and search for your favourite US companies to start investing. Apart from shares, one can also consider investing in US CFDs and ETFs.
What are the Different Ways to Invest in US Stocks from the Middle East?
If you want to benefit from the vast potential of the US stocks from the Middle East, then here are some of the options you can consider-
By purchasing a share, you receive a unit of ownership in the company. As a shareholder, you are entitled to receive dividends. After investing, you are free to continue holding your investment as long as you like. Stamp duty is applicable every time you trade US shares in the Middle East.
Shares are mostly preferred for long-term investments. For instance, one could have purchased Apple shares (AAPL) from their international trading account in August 2019 at $50 and sold it today at around $150, making a profit of close to $100 on each share.
CFDs or Contracts of Differences are financial contracts that pay the price difference between the opening and closing of the trade. Rather than purchasing the underlying share, one buys a financial contract to take advantage of the rising and falling stock prices. You get to trade on leverage, and no stamp duty is payable on CFD trading.
Unlike shares that are ideal for long-term investments, the CFD is preferred for short-term stock trading in Dubai. For example, you can buy a CFD if you believe a particular US stock price will rise and short sell it if your analysis suggests that the price will fall. The difference in the price at the time of opening and closing the trade multiplied by the CFD quantity will be your profit or loss.
Access a World of Opportunities by Investing in US Stocks from the Middle East
A country as developed as the US offers a host of highly rewarding investment opportunities. Investing or trading in US stocks is one of the easiest ways for people in the Middle East to benefit from the growth of top public-listed global companies.
Look for a reputed international broker in Dubai to know more about investing in US stocks, exploring your options, and opening your investment account.