How to Invest in the US Stock Market from UAE| North Loop Official Blog
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North Loop
11 Aug 2020

How to Invest in the US Stock Market from UAE

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If you want to diversify your existing investment portfolio globally to accumulate your wealth and are wondering how to invest in the US stock market from UAE, there are certain things you should consider. We have listed five of the most important steps to follow to invest in US stocks.

Let us take a look at them -

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1. Find a good online investment platform –

A good investment platform can connect you to major stock markets such as the New York Stock Exchange (NYSE) and the NASDAQ that are the most known, largest and most prestigious exchanges in the world. Along with tech giants like Microsoft, Apple and Google, approximately 3100 companies get listed on NASDAQ, and around 2 billion shares are traded on it daily.

Most importantly, with the massive demand of micro-investing, buying and selling stocks, or investing in exchange-traded funds is no longer only for seasoned investors. With online investment platforms, the stock market is now available to everybody.

So even if you want to invest in the US stock market from UAE, you can do so by finding an online platform which offers your choice of investment products such as mutual funds, bonds, forex currency and others. If you are confused between mutual funds and stocks you can read here.

With the digital platform North Loop you get global coverage and access to all major international equity markets and the best stocks to invest in the US from anywhere in UAE. You can open an account within 5 minutes and begin investing on your own and even get the help of a professional financial advisor. Moreover, the customer services on our platform are available 24*7, and this ensures you, a stress-free and seamless experience.

2. Open an investment account –

After finding the online platform that caters to your needs and investment goals, you need to open a brokerage account. Brokerage accounts offer you access to a range of different investments, including stocks, bonds, mutual funds, index funds, exchange-traded funds and can also get set up in no time.

Many platforms also have a minimum deposit requirement to open a brokerage account, and the amount can vary between something as low as $20, to as high as $10,000, or more.

3. Fund your investment account –

To buy shares online, you need to fund your investment account that can be done through various methods like bank transfers and credit/debit cards. Once you initiate a deposit or funds transfer to your brokerage account and the transfer gets completed, you can begin investing from the comfort of your home. Moreover, you can also buy fractional shares, which means that even if the price of a stock is over $2000, you can choose to invest only $500 in it.

4. Find a stock you want to buy –

Like with any investment decision, if you are willing to invest in the US stock market from UAE, it is imperative to research the best US companies to invest in. Thorough research must be conducted examining the fundamental and technical characteristics of a company before placing an order for its stock.

You can look at a company’s balance sheet, income statement, cash flow statement and footnotes, all available in the company’s annual report, to make your analysis and decision. The best practice is to evaluate each company on its own merits and compare it to your financial needs, goals and risk tolerance.

The best stocks to invest in the US should fit in your investment portfolio according to its potential return and volatility. Having a concentrated portfolio increases your risk and total return potential while on the other hand, a diversified portfolio usually helps to achieve a target return along-with involving the least amount of risk.

5. Review your share positions regularly –

Reviewing your investment strategy consistently is an important step for successful trading experience. After you have chosen and bought the shares, it is necessary to monitor your investments on a routine basis to ensure that they are in line with your financial goals.

If you are a long-term investor, you can look at the quarterly or yearly reports to get an idea of your share positions, however, speculating on performance in the short term would be focussing on the wrong kind of performance and an investing mistake.

Similarly, for short-term buyers, position management can mean setting up a stop-loss price as well as a target price to know where you can cut losses and at what price you want to sell the shares with a profit.

If you follow the above steps and continue to educate yourself about the stock market and the best US companies to invest in, you can diversify your investment portfolio without any difficulty. That being said, the financial market is vast, and to gain expertise, a considerable amount of research and experience is required. So, you should ideally choose a platform that provides you not only with convenience, portfolio diversification and quality customer service but also access to professional advice wherever needed.

To open an account with North Loop, sign up here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.