Which Stock Brokerage Account Do I Use to Invest in Overseas Stocks?
Hi Bob,
In my view, the essential functions of a stockbroker include facilitating the buying and selling of stocks and acting as custodians for my shares.
Therefore, I believe that any licensed broker who can perform these tasks efficiently and at competitive rates is sufficient for my needs.
Currently, my friend Ian Tai is using Maybank IB, which allows him to invest in stocks in Singapore, Hong Kong, and the United States.
The benefits of using a local broker like Maybank IB include compliance with licensing requirements and simpler estate planning.
However, one significant drawback is the brokerage fees.
When investing in international stocks through Maybank IB, Ian is paying higher brokerage fees compared to foreign brokers.
I personally manage three stock brokerage accounts across Malaysia, Singapore, and the United States.
In Singapore, my choice is POEMS by PhillipCapital, a firm licensed under the Monetary Authority of Singapore (MAS).
In the US, my go-to broker is Interactive Brokers.
This strategy allows me to benefit from lower brokerage fees, though it does introduce complexities in estate planning due to the different jurisdictions involved.
Nonetheless, regardless of the stockbroker we choose, our primary objective remains to build wealth by accumulating shares in quality businesses over the long term.
It's the performance of these stocks, not the efficiency of the stockbroker, that ultimately builds our wealth.
The initial step towards creating a profitable stock portfolio isn't just about opening an account.
It's about learning and acquiring the investing skills necessary to distinguish wealth-generating stocks from the rest.
These skills are crucial for buying solid stocks at a discount, avoiding overpayment.
For those interested in learning more, I have prepared an online training session that outlines how investors can achieve sustainable, long-term wealth through growth investing:
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Online Training: Case Study of an Actual Stock that I had Invested in and Why It Doesn’t Take High Risk to Generate High Returns in the Stock Market?
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