Skip to main content

Investing in U.S. Stocks | Learn to trade global stocks

Not many investors know they can invest in U.S. stocks and the shares of the largest technology companies and food companies with branches scattered throughout the world. Modern technology companies and mergers such as Facebook, Google.

usa-stocks

 

Apple, Microsoft and others, food products companies and restaurants such as Coca-Cola and McDonald's all these global companies you can buy their shares just as the shares of Saudi companies trade in the Saudi stock market! 

And even easier than that online with many licensed trading companies worldwide! Without the need for many of the complexities of trading in local stocks in Saudi Arabia or in the UAE, for example.

Modern technologies and global internet connectivity have made the world a small village and global markets as a single common market where any investor in any country can trade and invest anywhere in the world without moving home! 

There are several ways in which you can invest in US and global stocks and trade them! A stock exchange such as NASDAQ, which has the majority of the shares of technology companies, can be traded in a NASDAQ 100 index that includes the top 100 NASDAQ listed companies by market value! And other indicators that can be traded online whether through your computer or mobile phone. 

Investing in U.S. Stocks from Saudi Arabia

Saudi Arabia's official investment sits at $52 billion! This figure only reflects the recorded investments of the Saudi government! 

As for the volume of investment in U.S. stocks by leading businessmen, investment funds of banks and even small investors, the figure cannot be counted for its size! 

A wide range of Saudi investors are willing to invest in US stocks due to factors such as easy access to information and news in that market! Tax facilities for non-Americans, ease of legal redress and reducing the impact of the exchange rate (US dollar vs. Saudi riyals)! The sheer volume of trading on these stocks gives investors and speculators opportunities to make huge profits by trading on those exchanges and global markets.

Ways to Invest in U.S. and International Shares from Saudi Arabia

There are many different ways in which you can invest in U.S. stocks from Saudi Arabia, the UAE or any other country outside the USA! These methods are the following:


U.S. Deposit Receipts

American Deposit Receipts (ADRs) are an easy and convenient way to buy foreign stocks! Foreign companies use deposit receipts as an opportunity to prove the existence of the United States and sometimes to increase capital! A Chinese giant like Alibaba is one of the biggest global examples of a company's capital increase as a result of deposit receipts and IPO! Deposit receipts have several levels, are issued in exporting countries equal to U.S. shares and are traded like local shares.

Global deposit receipts

A Global Deposit Receipt (GDR) is another type of deposit receipt! In this case, the deposited bank issues the shares of foreign companies on international markets, usually in Europe and makes them available to investors inside and outside the United States.


Foreign direct investment:

There are two ways for investors to buy foreign shares directly. You can open a global account with a broker in your country! Or open an account with a local broker in the target country of investment.


Investing in global equities through global mutual funds:

Investors who are keen to explore international markets without too much trouble can choose to invest in international investment funds! These funds are similar to any mutual funds in terms of the benefits they offer and how they work! However, it has a portfolio of foreign equities rather than local shares.


ETFs:

International EXCHANGE-traded funds provide a convenient way for investors to access foreign markets! Choosing the right ETFs is easier for investors than building a group of stocks themselves.


Multinational companies:

Investors who are not satisfied when buying foreign shares directly and who are concerned about ADRs deposit receipts or mutual funds can look for local companies that have the majority of their sales and revenues abroad! The most suitable companies for this purpose are multinationals! An example of u.S. multinational stake companies is Coca-Cola, McDonald's.