Investing in U.S. stocks is a great opportunity for Taiwanese to diversify their portfolios and capture global market returns。This article will detail the steps and precautions for Taiwanese to open an account to speculate in U.S. stocks to help you easily enter the U.S. stock market。

Why invest in U.S. stocks?

The U.S. stock market has several significant advantages.

1. Diversification: The U.S. stock market is home to thousands of companies, including many of the world's leading tech giants and blue chips。
2. Liquidity: The U.S. stock market is actively traded, highly liquid and easy to buy and sell.。
3. Great growth potential: The U.S. economy is strong and many companies have high growth potential。

Two ways to open an account for U.S. stocks

There are two main ways Taiwanese investors can open an account to invest in U.S. stocks.

1. Through domestic brokerage re-entrustment.。
2. Place orders through foreign brokerages.。

Domestic brokerage firms re-entrust account opening

Re-commissioning services, i.e., indirect investment in U.S. stocks through local brokerage firms。Advantages of this approach include:

• Streamlined process: All transactions and money transfers are processed through local brokers, reducing cross-border procedures。
• Chinese Service: Provide full Chinese service and support for Taiwanese investors。
• Consolidated accounts: U.S. stock investments can be consolidated with other local investments in one account for easy management.。

Account Opening Steps

1. The applicant applies in person to the securities account or online to open a re-entrustment account.。
2. Fill in the relevant documents, the bank will review the applicant's account opening documents and the attached information is complete。
3. After confirming that the information is filled in correctly, conduct a joint credit investigation.。
4. If the regulations of the competent authority are not violated, a re-entrustment account may be opened.。

Foreign brokerage accounts

Open an account directly through a foreign brokerage firm, such as Interactive Brokers, TD Ameritrade, etc.。This approach usually provides more trading tools and research resources, but needs to deal with cross-border money transfers and tax issues on its own。

U.S. stock account opening - what is a re-commission?？

Sub-brokerage (Sub-brokerage) full name "Securities Dealer Execution of Fiduciary Trading in Foreign Securities"。Investors through Taiwan brokerage firms to entrust U.S. brokerage firms to place orders, brokerage firms will charge a commission fee as a service fee.。

The cost of investing in U.S. stocks includes:

• Fees: Taiwan brokerage fees (re-entrustment limit) + U.S. brokerage fees
• US stock exchange transaction fees: e.g. securities transaction taxes。
• Taxes levied by the United States Government: 30 per cent tax on cash dividends。

U.S. Stock Account Opening - Re-Entrustment Features

According to statistics, the total number of re-commissioned accounts opened in Taiwan at the end of 2021 was 304.90,000, with a turnover of NT $4.3 Mega。Taiwan's main trading market for re-commissioning is the U.S. stock market, accounting for 77%。

Main features of re-commissioning

1. Transaction security: Brokers are all legal brokers licensed to operate by the FSC.。
2. Investment targets are guaranteed: for non-professional investors, they can screen out landmine targets such as junk bonds.。
3. Inheritance Tax Treatment: Treat it with Taiwan's Inheritance Tax Law without worrying about overseas inheritance tax。
4. Tax relief withholding: Select a Taiwanese brokerage firm with QI qualification (Qualified Intermediate) to re-entrust U.S. stocks, and the interest rate on investment bonds will not be withheld 30% tax.。

No cross-border remittance fees and telegraph charges

The re-entrustment is based on the agreed deduction of the investor's Taiwan bank account.。Conversely, remitting funds to a foreign account through an overseas brokerage firm will incur additional remittance fees and telegraphic charges。

Comparison of domestic brokerage commission fees.

The fees for re-entrusting investments in U.S. stocks are relatively high, but some brokerages have introduced preferential schemes to "waive the minimum fee."。

Comparison of U.S. Stock Re-commissioned Transaction Fees

U.S. stock account opening re-commissioned securities account how to open.？

A number of brokerages support the opening of re-commissioned investment accounts online.。Investors can open an account online by downloading the brokerage app from their mobile phone or by surfing the Internet on their desk.。

Required Documents

• ID Card
• Health insurance card or driver's license
• Taiwan Dollar or Foreign Currency Passbook

Frequently Asked Questions on U.S. Stock Account Opening

Q1: What do you need to open a U.S. stock account?？A1: Two accounts need to be prepared to buy U.S. stocks in Taiwan: a bank account and a securities company re-entrustment account.。To open an account, you need to be at least 18 years old and prepare a double document (ID card plus health insurance card or driver's license) to open an account.。

Q2: How much is the U.S. stock account opening fee?？A2: Different banks will have different account opening fees, at present, many domestic brokerages have launched "free minimum fee" preferential scheme, kangaroo financial above for you to organize the domestic brokerage re-commission fees, the minimum amount of fees, the latest transaction concessions.。

Conclusion

U.S. stock investment provides a wealth of investment opportunities for Taiwanese investors, but it also comes with certain risks。By choosing the right broker, preparing adequate documentation and developing a sound investment strategy, you can effectively reduce risk and enjoy the benefits of the global market.。I hope this article will be helpful for you to understand and enter the U.S. stock market, and I wish you a smooth investment!