To buy US Stocks from UAE, you will require to open a brokerage account.
I personally use the following broker to buy US stocks while I live in Dubai, UAE:
- Interactive Brokers (Get a FREE Stock worth up to 1000$)
Many of my friends have asked me this question in the past few months:
How can I invest in US Stock Market from UAE or How Do I buy the US Stocks?
I know why!! The US stock markets have peaked in the recent times.
In this post, you will learn ‘how to buy US Stocks from Dubai, UAE and Middle East.’
You will definitely know who Elon Musk is! He is the richest man on earth as of today.
And do you know how he is the richest man? Yes, he partly owns Tesla, the leading EV manufacturer.
Elon Musk is the richest man because Tesla is listed on the US stock market and the total market capitalisation of Tesla as of writing this article is around US$ 806 Billion!!
Elon Musk owns roughly 20% of the Tesla stocks and hence that makes him the richest man on the earth.
10 years back Tesla shares were at 7$ per share. And today they are 257$ per share. If you had invested 10000$ in June 2013, today that money would be 367000$; more than 36X your money.
Tesla is just one example! Companies like Google, Apple, Amazon, Netflix and many other companies have given higher or similar returns.
I am not trying to persuade you to buy shares. I am trying to tell you the possibilities of enhancing your net worth over long periods of time.
And the most surprising stock that you may not even have heard: Monster Beverage
What I’m trying to tell is that: stock markets can create wealth for you and your family over longer term (5 years and above) than any other asset class.
The US Stock market is one of the best stock markets for return on investment. Many of the wealthy people I know in Dubai and UAE have some or other connection with US stock markets by investing in companies such as Apple, Alphabet (Google), Tesla, Amazon etc.
If you had just invested in S&P (Standard and Poors) Index, you would have the following returns:
That’s amazing returns for just parking your funds in the Index.
Well, now that you know what are the possibilities, I will teach you how to buy US Stocks.
Can foreigners buy US Stocks?
The answer is YES, you can.
How to buy US Stocks?
To get started with investing in US stocks from UAE, you will require TWO things ready:
- A Brokerage Account (to buy and sell your stocks)
- Funds to buy shares
Top Brokerage Firm I use to buy US stocks:
I spoke to some friends in US before I opened my brokerage account. They mentioned they were using apps like Robinhood.
Unfortunately, these apps are not available if you live in UAE.
I found online broker where you could open accounts from Dubai, UAE and Middle East:
How to buy shares through Interactive Brokers?
My preferred way to buyer US shares is through Interactive Brokers. They are one of the cheapest and advanced stock brokers available and are completely online. At least 15 of my friends have opened account with them and have been able to buy and sell shares.
I do not trade in stocks. My style is to hold stocks for the long term. I thoroughly study the stock fundamentally and keep the long term perspective on company operations. When I am convinced that a stock can give me the kind of returns I am looking for in 10 years, I get into investing.
Why Interactive Brokers?
How to Open Trading Account with Interactive Brokers?
Step 1: Visit Interactive Brokers site and click on Open Account link:
Step 2: Start Application:
Continue with application Form as you would normally do with any other account opening form.
Documents Required to Open Your Brokerage Account:
When you have done with the process, you will require your
- Passport copy,
- Your visa,
- Your Emirates ID
- DEWA (utility bill) for address proof.
As a next step, confirm your email which Interactive Brokers will send you to confirm:
Once you have completed these steps, it will take approximately 4-5 days for your account to be approved. Once your account is approved, you will be able to access your account and login.
Step 4: Log in to Your Interactive Brokers account:
Since I have enabled 2 Factor Authentication, an SMS or App is necessary to login to the system.
When you login, you will be presented with the following screen, which will list your available balance, returns on stocks etc:
How to US Buy Stocks on Interactive Brokers?
Interactive Brokers allows you to buy stocks from many markets including US, Canada, China, Europe, Japan etc.
When you have logged in, click on Trade button on the top right:
A separate, window will open to the right:
If you know the stock symbol you want to buy, enter in the ‘Enter a Symbol’ area. You can find the stock symbol from Google by simply searching for the company name + symbol.
In my example, I would like to buy Tesla. The symbol is TSLA.
There is a difference between all options like Limit Order, Market Order, and so on. Read what it is in the Interactive Brokers site.
I usually go for Limit Order or Market. Simply put, Limit Order means the price at which you are willing to buy or sell. Market order is the one where you are giving instructions to the system to buy or sell at current market prices.
When you are satisfied with your price, click Submit Buy Order. If the price matches under Limit order, it will be executed and you own the shares.
It’s that simple to buy your shares.
Congratulations!
You have successfully opened your trading account. I wish you all the best. Investing can be a rewarding journey for you and your family.
I have also started a newsletter aimed at Investors where I write and speak about, investment fundamentals and particular stocks that I like.