How to Invest in U.S. Stocks by a Non-American
Invest in U.S. stocks as a non-American by opening an investment account in any country, and instructing the brokerage firm to buy American stocks or mutual funds. Discuss taxes and legal matters with a lawyer or tax accountant before investing in foreign markets with help from a financial consultant in this free video on investments.
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It might surprise you, but most investors in the US markets are not Americans. Hi, this is Roger Groh at Groh Asset Management. Well maybe that was a little tricky because most investors are mutual funds or companies and they are not American citizens, they might be titled an American and have rights within America, but they are not American citizens because only an individual can be a citizen. If you are a citizen of another country and you are considering investing in America, how do you do that? Well in the old days you have to open up an account here in the US and prove who you were and fund the account and then begin to buy and sell and disclose that data to the appropriate regulatory bodies. Today you don't have to do that, today you can open up an account pretty much wherever you want in whatever country you want and instruct your stockbroker or bank to buy the stock in American today that's appropriate for you. Some industries will have restrictions like defense for instance, but generally if you've got the cash, we want to see it. So one other note when it comes to being a foreigner and investing in the US. There are probably more regulatory bodies here in the US that you have to disclose what you're doing to, then in other countries. It's really painful in terms of the scope of that but yet protects all of us and is worth the time and effort. The country that you have come from to be an investor may also have reporting requirements and they're going to be different for each host. So if you've come from China and you're investing here in the US, you have one set of reporting requirements here in the US. If you're coming from Canada, you have another. So you have to think about the relationships there in order to decide what's best to do. That would involve a lengthy tax and legal conversation with your lawyer and with your tax accountant to help figure it the place to come from that's best for you. So I hope that helps, America is a great place to put money. I'm Roger Groh with Groh Asset and thank you very much for spending time with me.