A Malaysian Investor's Guide to Buying US Stocks: 2025 Complete Guide

Investing in global equities can help diversify your portfolio and manage volatility. The US stock market, with a market capitalization over 100 times that of Bursa Malaysia, attracts many Malaysian investors looking to broaden their investment horizons.

The US market, home to some of the world’s largest and most innovative companies, has seen its major indices like the S&P 500, Dow Jones Industrial Average, and NASDAQ Composite hit all-time highs in 2024, making it an appealing destination for robust investment opportunities.

For Malaysian investors, investing in US stocks offers several advantages. It diversifies your portfolio, helps manage currency fluctuations, and exposes you to different economic conditions. However, it's essential to recognize the risks involved.

This guide covers everything you need to know about investing in US stocks from Malaysia, from understanding market dynamics to comparing trading platforms and managing risks.

Why Invest in US Stocks?

Before we look at the reasons why people invest in US stocks, we need to first understand what exactly constitutes the US stock market.

What Exactly is the US Stock Market?

The US Stock Market is one of the largest and most liquid stock markets in the world, attracting both domestic and international investors. The US Stock Market comprises several stock exchanges, with the Nasdaq and New York Stock Exchange (NYSE) being the most prominent.

Home to some of the world's biggest and most well-known companies, the US Stock Market features the "Magnificent Seven" tech giants: Apple, Microsoft, Amazon, Alphabet (Google), Meta (Facebook), Tesla, and Nvidia. These companies have transformed the global economy and continue to drive innovation and growth. In addition, other notable companies such as Berkshire Hathaway, JP Morgan Chase, and Walmart also trade here.

Beyond US-based companies, the US Stock Market also lists many foreign companies. European companies like Nestle, L'Oreal, and Unilever, as well as Asian companies like Alibaba, Tencent, and Samsung, are traded on US stock exchanges. This makes the US Stock Market a truly global marketplace, providing investors with access to a diverse set of companies from around the world.

The US Stock Market includes three major indices:

• Dow Jones Industrial Average (DJIA): Tracks the performance of 30 large, publicly owned companies in the United States.
• S&P 500: Tracks the performance of 500 large-cap companies listed on US stock exchanges.
• Nasdaq Composite: An index of more than 3,000 stocks listed on the Nasdaq exchange, known for its technology-focused listings.

US Stock Markets: A Dynamic Landscape in 2025

In 2024, the U.S. stock market delivered an outstanding performance, with the S&P 500 gaining 25.0% for the year—its second consecutive year of double-digit growth and one of its strongest two-year runs in recent history. The Nasdaq Composite surged by 28.6%, crossing the historic 20,000 mark for the first time in December 2024, while the Dow Jones Industrial Average ended the year up 12.88%, reaching record highs along the way.

These gains were largely driven by continued enthusiasm around artificial intelligence (AI) and strong earnings from major technology firms. Nvidia stood out as a key player, with its stock price skyrocketing by over 170% in 2024, thanks to growing demand for AI chips. Other tech giants like Microsoft, Amazon, Meta Platforms, and Alphabet also contributed significantly to the overall market rally.

However, the start of 2025 has introduced new challenges for the market. As of early May, the S&P 500 has declined by approximately 5.3% year-to-date, while the Nasdaq has fallen by over 8%, reflecting renewed volatility in the tech sector. The Dow Jones has also slipped by around 3.4%.

This reversal comes amid a mix of macroeconomic headwinds, including U.S.-China trade tensions, concerns over potential new tariffs, and weakness in high-growth stocks. Nvidia, which had led 2024’s charge, is now facing setbacks due to export restrictions and rising competition from Chinese AI alternatives, resulting in a more than 20% drop in its share price so far in 2025. Additionally, higher Treasury yields and uneven economic indicators have added to investor uncertainty.

For Malaysian investors, the evolving U.S. stock landscape still presents valuable opportunities—particularly as a means of diversifying portfolios with exposure to global innovation leaders. While the market’s long-term growth potential remains strong, the recent correction serves as a reminder of the importance of diversification and risk management. Monitoring macroeconomic developments, currency fluctuations (especially MYR/USD), and sector performance will be key to navigating U.S. equities in 2025.

Reasons to Invest in US Stocks

The allure of the US stock market for Malaysian investors is compelling, driven by its robust performance, diversification opportunities, and the sheer scale of its financial ecosystem. Here are some of the standout reasons why investing in US stocks can be a smart move:

1. Unmatched Capitalization: The New York Stock Exchange (NYSE) and NASDAQ together boast a market capitalization exceeding US$50 trillion. This immense market depth offers investors access to the largest and most influential companies worldwide. Whether you’re looking at tech giants, industrial behemoths, or innovative startups, the US stock market provides unparalleled opportunities to own a slice of the global economic powerhouse.
2. Exceptional Liquidity: As the most liquid market globally, the US stock market ensures that investors can trade shares with ease and minimal risk of market manipulation. The high liquidity means tighter spreads and the ability to quickly find buyers or sellers, providing a seamless trading experience.
3. Extensive Diversification: Investing in the US market goes beyond just stocks. It opens up avenues for diversifying your portfolio with U.S. government bonds, corporate bonds, options, and ETFs spanning various sectors and industries. Additionally, American Depositary Receipts (ADRs) offer exposure to non-U.S. companies, further broadening your investment horizon.
4. Market Transparency and Integrity: The US securities market is regulated by the U.S. Securities and Exchange Commission (SEC), which upholds stringent standards to protect against market manipulation and promote efficiency and transparency. This regulatory framework ensures that investors can trust the integrity of the market, fostering a secure investment environment.
5. Currency Stability: The U.S. dollar, recognized as the world’s dominant reserve currency, has shown remarkable stability over time. This stability helps mitigate the risks associated with fluctuating exchange rates, making it a safer haven for international investors.
6. Hub of Innovation: The US is a cradle of innovation, home to companies that are at the forefront of technological and industrial advancements. From Silicon Valley tech titans to biotech pioneers and beyond, investing in the US market means aligning with cutting-edge innovation and potential exponential growth.

Comparing US Stocks and Malaysia Stocks Performance

When comparing the returns of the US stock market to the Malaysian stock market, the differences in performance become quite evident. Over the past decade, the US stock market has consistently outperformed the Malaysian stock market, offering higher average annual returns and a more robust growth trajectory.

The US stock market, represented by indices like the S&P 500, has seen impressive returns. Over the past decade (as of 8 May 2025), the S&P 500 has averaged an annual return of approximately 10.56%. This growth has been fueled by the strong performance of major companies in sectors such as technology, healthcare, and consumer goods. The market's depth and liquidity have also contributed to its resilience and ability to attract significant investment capital.

In contrast, the FTSE Bursa Malaysia KLCI (Kuala Lumpur Composite Index) has experienced negative performance over the past decade (as of 8 May 2025), averaging an annual return of approximately -3.47%. The KLCI has struggled to maintain upward momentum due to economic fluctuations, political uncertainties, and sector-specific issues, unlike the US market.

Ways to Trade US Stocks in Malaysia

Malaysian investors have multiple options to trade US stocks, including local stock brokerages and international platforms. Each type of broker has its own advantages and disadvantages, including different fee structures, regulatory oversight, and the range of available investment products. 

Foreign Brokers Regulated by the Securities Commission Malaysia

Regulated foreign brokers provide the assurance of local oversight and compliance with Malaysian regulations. Here are some of the key options:

FSMOne (by iFAST Capital)

FSMOne is the retail investment platform of iFAST Capital Sdn Bhd, a subsidiary of iFAST Corporation, a Singapore-listed fintech firm established in 2000. FSMOne is licensed and regulated by the Securities Commission Malaysia (SC Malaysia), giving Malaysian investors the peace of mind that the platform operates under local oversight.

Through a single custodian account, investors in Malaysia can access a wide range of investment products, including unit trusts, stocks, ETFs, bonds, managed portfolios, and even insurance. Markets available include Malaysia, the US, Singapore, Hong Kong, and China. Fractional shares are supported for U.S. equities, allowing Malaysians to invest in high-priced stocks with smaller capital outlays. FSMOne is known for its transparent fee structure and emphasis on investor education, making it a suitable option for both beginners and seasoned investors.

Rakuten Trade

Rakuten Trade is Malaysia’s first fully online equities broker, launched in 2017 as a joint venture between Kenanga Investment Bank Berhad and Rakuten Securities Inc. of Japan. It is regulated by the Securities Commission Malaysia and operates under a full Capital Markets Services License.

The platform offers custodian accounts for trading in Malaysian, U.S., and Hong Kong-listed stocks. Investors can also trade company warrants, structured warrants, REITs, and ETFs. Rakuten Trade stands out for offering fractional shares for U.S. equities, making it accessible to retail investors. With one of the lowest trading fees in Malaysia—starting from as little as USD 1.88, it has become a popular choice among cost-conscious Malaysians. Account opening and funding can be done seamlessly in Malaysian ringgit, adding to its convenience.

Moomoo Malaysia

Moomoo is an international trading platform developed by Futu Holdings, a Nasdaq-listed fintech company backed by Tencent. Its Malaysian operations are run by Futu Malaysia Sdn Bhd, which is licensed by the Securities Commission Malaysia. This ensures the platform complies with local investor protection standards.

Malaysians can open a custodian account to trade stocks and ETFs listed in the U.S., Malaysia, Hong Kong, Singapore, and China. Moomoo supports fractional share trading and offers commission-free promotions for new users. The platform is known for its intuitive mobile app, real-time data feeds, and advanced trading tools. Investors can fund their accounts in MYR, and benefit from a fast, digital onboarding experience. Moomoo is especially popular among younger investors for its app-first design and competitive pricing.

M+ Global

M+ Global is the international arm of Malacca Securities Sdn Bhd, a long-established Malaysian brokerage founded in 1963. It is regulated by the Securities Commission Malaysia and offers Malaysian investors direct access to U.S. and Hong Kong markets.

M+ Global provides a custodian account for trading in stocks, ETFs, warrants, and Callable Bull/Bear Contracts. While it does not support fractional shares, the platform offers a straightforward trading interface and competitive fees, with U.S. trades charged at 0.1% or a minimum of USD 3. M+ Global appeals to Malaysian investors who prefer to deal with a trusted local brokerage while still gaining international market access.

Webull Malaysia

Webull Malaysia is the local subsidiary of Webull, a U.S.-based trading platform established in 2017. Operated by Webull Securities (Malaysia) Sdn Bhd, the platform is licensed by the Securities Commission Malaysia, making it a fully compliant option for Malaysians seeking to invest globally.

Webull offers custodian accounts and provides commission-free trading (for new users) on U.S. stocks and ETFs. It also supports options trading and fractional shares. The platform has expanded to support Malaysian equities and offers a fully digital onboarding experience with funding in MYR. Webull is well-suited to active Malaysian traders who want advanced analytics tools, a clean mobile interface, and low-cost access to international markets.

Foreign Brokers Not Licensed by Securities Commission Malaysia

Some of the biggest foreign brokers are not regulated by local regulatory authorities in Malaysia. This includes platforms like TD Ameritrade, and Tiger Brokers, which are listed on the Securities Commission Malaysia’s (SC) Investor Alert List. This list identifies unauthorized platforms and serves as a caution to investors. The SC advises against investing with any platforms that aren’t licensed or approved, warning that dealing with unlicensed or unauthorized entities can expose you to risks such as fraud or money laundering.

However, being on the Investor Alert List doesn’t necessarily mean a platform is fraudulent. Many of these platforms are regulated by reputable international authorities. For instance, TD Ameritrade Singapore is regulated by the Monetary Authority of Singapore, while its international counterpart is overseen by the US Securities and Exchange Commission (SEC). These regulations provide a level of security and trustworthiness, even if they are not recognized by the Malaysian regulatory body.

One downside of using non-regulated foreign brokerages is the lack of recourse through the SC in Malaysia in case of disputes. Investors need to be aware that any issues with these platforms would need to be resolved through the regulatory frameworks of the countries where these platforms are based.

Charles Schwab

Charles Schwab is one of the largest retail brokerages in the United States, founded in 1971 and headquartered in Westlake, Texas. While not licensed by the Securities Commission Malaysia, it is regulated by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), ensuring compliance with U.S. standards.

Schwab offers custodian accounts and provides Malaysians with access to U.S. stocks, ETFs, mutual funds, fixed income products, and options. Schwab is known for its 0% commission structure on online U.S. equity trades. However, MYR is not supported, so investors must manage currency conversion and cross-border remittance when funding their accounts.

Interactive Brokers

Interactive Brokers (IBKR), founded in 1978 and based in Greenwich, Connecticut, is a globally recognised brokerage known for its low fees and access to over 150 global markets. Though not licensed by SC Malaysia, IBKR is regulated by multiple authorities including the SEC, UK’s FCA, and Japan’s FSA.

IBKR offers custodian accounts and allows Malaysian investors to trade stocks, options, futures, ETFs, currencies, and bonds across 30+ countries. It supports fractional shares for U.S. equities and is particularly popular among sophisticated investors due to its tiered fee structure and advanced trading tools. MYR is not supported; funding must be done in accepted currencies such as USD or SGD.

Saxo Markets

Saxo Markets is the online trading platform of Saxo Bank, a Danish investment bank established in 1992. While it is not licensed in Malaysia, Saxo is regulated by top-tier financial authorities in Europe, the UK, Australia, and Singapore.

Saxo offers custodian accounts and access to 36 global exchanges, including U.S. markets. Malaysian investors can trade stocks, ETFs, options, bonds, futures, commodities, and CFDs. Though it does not support fractional share trading, Saxo is known for its institutional-grade platform and broad product coverage. Funding must be done in foreign currency, and bank charges or FX spreads may apply.

TD Ameritrade

TD Ameritrade is a well-known U.S. brokerage firm founded in 1975 and now part of Charles Schwab. The platform is not licensed in Malaysia and appears on the SC Malaysia Investor Alert List, though it is regulated by the SEC and FINRA in the U.S.

Malaysian investors can open custodian accounts through TD Ameritrade Singapore or its U.S. entity. The platform offers zero-commission trading on U.S. stocks and ETFs, and supports options and futures trading. It does not currently support fractional shares. While its regulatory status in Malaysia limits investor protection locally, TD Ameritrade is still used by seasoned investors who prioritise U.S. regulatory oversight and low-cost access.

Tiger Brokers

Tiger Brokers is a tech-driven online brokerage launched in 2014 by UP Fintech Holding, a Nasdaq-listed company. While not licensed by the SC Malaysia, it is regulated in markets such as Singapore (MAS), the U.S. (SEC), and New Zealand.

Through custodian accounts, Malaysians can access U.S., Hong Kong, China, Singapore, and Australian markets. Tiger Brokers supports a wide range of instruments including stocks, ETFs, mutual funds, options, and futures. While the platform’s low fees and modern app appeal to younger investors, users must fund accounts in foreign currency and be aware that disputes cannot be resolved under Malaysian investor protection frameworks.

TradeStation Global

TradeStation Global is an international brokerage service offered through a partnership between TradeStation (U.S.) and Interactive Brokers. Headquartered in the U.S. and regulated by the UK’s Financial Conduct Authority (FCA), it is not licensed in Malaysia.

The platform offers custodian accounts and provides Malaysian investors access to 18 global exchanges, including the U.S., UK, Europe, and Asia. TradeStation supports stock, ETF, futures, and currency trading. Known for its high-speed execution and robust analytics tools, the complex fee structures and lack of local support make it more suitable for experienced investors.

XTB

XTB is a European multi-asset broker founded in 2002 and headquartered in Warsaw, Poland. Though not licensed by the SC Malaysia, it is regulated by the UK’s FCA and other European bodies.

XTB provides access to over 2,100 markets via CFDs and supports trading in stocks, ETFs, indices, commodities, currencies, and crypto. It operates on a custodian model and offers both a standard account (no commission, wider spreads) and a pro account (commission, tighter spreads). CFD trading involves leverage and higher risk, which Malaysian investors should evaluate carefully. Funding must be in accepted foreign currencies, and while fractional shares are supported, this is via leveraged products.

Capital.com

Capital.com is a UK-based fintech brokerage launched in 2016 with regulatory oversight from the UK’s FCA, CySEC in Europe, and ASIC in Australia. It is not licensed in Malaysia.

Malaysian investors can open custodian accounts and trade over 3,700 markets including stocks, indices, commodities, forex, and cryptocurrencies—all via CFDs. The platform offers no commissions or funding fees and features a user-friendly interface, appealing to newer investors. However, like other non-regulated platforms in Malaysia, it lacks local investor protections and requires funding in supported foreign currencies.

Domestic Brokers That can Trade US Stocks

Many domestic Malaysian stockbrokers have connections to US stock brokers, acting as intermediaries to facilitate your trades. These brokers allow you to set up an international trading account, enabling you to invest in US stocks, providing the assurance of local regulation and a familiar banking environment.

However, you might face limitations on the types of investment vehicles you can use or the total number of trades you can execute, depending on the brokerage firm. Additionally, brokerage fees and currency conversion costs can make investing more expensive. It's crucial to be aware of all the associated costs before opening an account.

RHB Investment Bank

RHB Investment Bank is the investment banking arm of RHB Banking Group, one of Malaysia’s largest financial institutions. It is regulated by the Securities Commission Malaysia.

RHB offers custodian accounts for international trading, including access to markets such as the U.S., Hong Kong, Singapore, Indonesia, and Thailand. For U.S. trades, fees are relatively high, with a minimum charge of USD 21 or 0.28% per trade. While RHB offers the reassurance of a local bank-backed platform, it does not support fractional shares, and the fee structure may be less cost-effective for frequent or small-lot investors.

Maybank

Maybank is Malaysia’s largest bank and offers international stock trading via its investment banking division, which is licensed by the Securities Commission Malaysia.

Malaysians can open a custodian trading account to invest in U.S., Hong Kong, Singapore, and other global markets, including the UK, Japan, and Australia. For U.S. trades, Maybank charges a minimum of USD 25 or 0.4% per trade. The platform does not support fractional shares. While it offers the convenience of integrated banking and investing, the high fees and limited flexibility may not suit cost-sensitive or highly active investors.

How Foreign Brokers Offer Zero-Commission Trading

If you've looked through the comparison table of foreign brokers, you might have noticed that some of them charge zero fees for trading. This might seem surprising, but there are several strategies these brokers use to generate revenue without charging commissions directly to the trader. Here are a few key methods:

• Payment for Order Flow: One of the most common ways brokers make money is through payment for order flow. When you place a trade, your broker may route your order to a market maker instead of executing it themselves. Market makers pay brokers for this order flow because it allows them to process more transactions. This practice is controversial but legal as long as brokers prioritize getting the best execution prices for their clients​.
• Interest on Uninvested Cash: Brokers often invest or lend out the uninvested cash sitting in your brokerage account. For example, they might loan your cash out through securities lending programs or invest it in interest-bearing accounts. The interest earned from these activities can be significant, especially considering the volume of uninvested cash brokers handle.
• Securities Lending: Brokers can also make money by lending out the securities held in your account to other investors, particularly those engaging in short selling. The fees and interest earned from these loans contribute to the broker’s revenue. This practice is distinct from margin lending, where brokers lend cash to clients for trading purposes and earn interest on those loans​.
• Data Sales and Premium Services: Some brokers collect and sell aggregated data about their clients' trading behaviors. Additionally, they may offer premium services such as advanced trading tools, real-time data, and research reports for a fee. These add-ons can be a significant source of income for brokers who offer zero-commission trading​.
• Sponsored Funds and ETFs: Larger brokers often create and sponsor their own mutual funds and exchange-traded funds (ETFs). These funds generate revenue through their expense ratios, which cover operating costs and contribute to the broker’s profits. For instance, Fidelity offers various mutual funds and ETFs, and the income generated from these products helps offset the costs of offering zero-commission trades​.

How to Fund Your International Brokerage Account

Funding an international brokerage account can be tricky, especially if your broker does not accept funding in Malaysian ringgit. However, there are several methods available to Malaysian investors:

1. Through a Local Broker

You can buy international stocks through local brokers such as Maybank or Public Bank. While this option provides the convenience of dealing with a local institution, it often comes with higher transaction fees, typically around US$25 per transaction. This method also offers the familiarity and security of local regulatory oversight.

2. Through Malaysian-Listed ETFs

Another option is to invest in Malaysian-listed ETFs that have exposure to international markets. These ETFs can be purchased through a local broker. Investing in ETFs can be cost-effective and offers diversification across various sectors and geographies. Examples include:

• TradePlus NYSE FANG+ Daily (2x) Leveraged Tracker: Provides exposure to US technology giants.
• MyETF Dow Jones U.S. Titans 50: Tracks the performance of 50 major US companies.

3. Through Malaysian-Listed Unit Trusts

Some unit trusts available in Malaysia invest in overseas assets. These can be purchased through fund management institutions like Public Mutual or through online platforms like FSMOne. Unit trusts pool money from multiple investors to invest in a diversified portfolio of international stocks, bonds, or other assets, offering a managed approach to investing globally.

4. Through Robo Advisors

Robo advisors are automated platforms that help you set up and manage an investment portfolio. Most robo advisors invest in globally diversified ETFs, making them an excellent choice for investors seeking a hands-off approach. One such example is StashAway that offers globally diversified portfolios tailored to your risk profile.