What is US Stock Market?
The US stock market is a platform for buying and selling stocks from publicly listed companies. The overall stock market comprises different exchanges and the two leading stock exchanges in the US are the NYSE (New York Stock Exchange) and Nasdaq (National Association of Securities Dealers Automated Quotations).
Generally, the NYSE is known as both the oldest and biggest equity stock exchange in the world. On the other hand, the Nasdaq is a more recent stock market where you can find the majority of the world's top tech companies, including Apple and Google (or Alphabet), are listed.
It is impossible to track every single stock available in a stock market, hence why the stock market index exists for investors and traders alike to track or analyse the overall market, including comparing the current stock prices from the past. In the US, there are about 5,000 (and counting) market indexes today, and the widely followed ones are the S&P 500, Dow Jones Industrial Average as well as Nasdaq Composite.
- S&P 500
Known as the most common stock index for the US stock market, the Standard & Poor's 500 Index, or the S&P 500, features the top 500 companies in the US markets, sorted primarily by their market capitalisation and liquidity. You can also find other leading companies outside of the US in the S&P 500 as well.
- Dow Jones Industrial Average
Often called the Dow or DJIA, this stock market index is a weighted index that tracks the market price of the top 30 “blue-chip” public-traded companies trading on the NYSE and the Nasdaq. It is widely referred to among investors as the 30 stocks in the Dow Jones can give them a general idea of how the entire stock market performs.
- Nasdaq Composite
This stock market index tracks the performance of about 3,700 stocks listed on the Nasdaq stock exchange and is heavily weighted based on market capitalisation. It has been a prominent index throughout the years as it highlights the performance of top tech companies like Microsoft, Apple, Tesla, and Google (or Alphabet) for instance.
For beginners, it is important to note that the price of a stock or share often fluctuates throughout the trading day and this could be caused by several factors such as industry trends, economic conditions, geopolitical events, and the company’s financial performance. Hence, do ensure that you have a good understanding of how the stock market works and the risks that are associated with each stock before investing.
What makes the US market stands out from the other stock markets?
Other than being known as one of the biggest and most influential financial markets in the world, the US stock market also has the largest number of listed companies, an exponential average daily trading volume, plus a steady market growth rate in two decades. These alone offer investors diversification opportunities for their portfolios.
In comparison to Bursa Malaysia, US’s listed companies in total are about 6 to 7 times bigger with a total market cap of USD 49 trillion, while the average daily trading volume is about 385 times larger than that of Malaysia – this means, the trading volume of 1 day in the US stock market is more than 1 year of that in Malaysia alone.
If you wish to know more, here’s a market comparison between the US and Malaysia, including other stock markets such as Hong Kong and Singapore.
|Daily Average Turnover (USD Million)||570,200||15,744||636||917|
|Number Of Stocks Listed||7,000+||3,000+||990+||640+|
|Representative Listed Companies||Apple, Microsoft, Google, Tesla, Nvidia||Tencent, Alibaba, Mei Tuan, AIA, HSBC||Maybank, Public Bank, Petronas Chemicals, IOI Corp, Maxis||DBS Group, OCBC Bank, UOB, Singtel, Wilmar|
|Major Stock Index||Dow Jones, S&P 500, NASDAQ Composite Index||Hang Seng Index||FBM KLCI Index||Straits Time Index|
|20-Year Market Growth Rate||233% (S&P 500)||74% (Hang Seng)||119% (FBM KLCI)||98% (Straits Time)|
|Price Limit Per Day||No limit||No limit||Price above RM1, maximum price limit capped at 30%||10%|
|Popular Tradable Products||Stocks, ETFs, REITs, Options||Stocks, ETFs, CBBCs, Warrants||Stocks, Warrants||Stocks, Warrants|
|Popular Exchange Traded Funds (ETFs)||SPY, QQQ, IWM, EFA, VTI, BND, IJH, etc||Currency ETFs, BTC & ETH ETFs, Index ETFs, 2800.HK, 2822.HK, etc||0823EA, EWM||ES3, EWS|
|Trading Hours (GMT +8)||
4PM - 9.30PM
9.30PM - 4AM
4AM - 8AM
9AM - 9.30AM
9.30AM - 4PM
8.30AM - 9AM
9AM - 12.30PM and 2PM - 5PM
8.30AM - 9AM
9AM - 12PM and 1PM - 5PM
Is it safe to invest in the US stock market?
Yes, definitely. The US stock market is regulated by the Securities and Exchange Commission (SEC), which oversees the functioning of the markets and enforces securities laws to protect investors.
How can I start trading in the US stock market?
You can choose to start trading in the US stock market by opening an overseas trading account through a local or foreign stockbroker. Nowadays, you can also open a trading account online which is more convenient and not to mention, cheaper.
Take M+ Global for example. This online trading platform offers you easy access to investing in the US stock market simply by downloading its mobile app available at Google Play Store, Apple App Store or Huawei AppGallery. With a minimum deposit of RM100, you can already register and set up your account in under 10 minutes.
Why should I invest with M+ Global?
M+ Global comes with distinctive features that will make your US trading experience a seamless one.
- You get real-time market data
This is crucial as it helps you to make well-informed investment decisions before you place a trade or proceed to make any transaction. In the M+ Global mobile app, you can use this feature to review the overall performance of a stock index such as the Dow Jones Industrial Average (DJIA), the S&P 500 or the Nasdaq Composite.
- You can choose from a myriad of stocks, ETFs and REITs in a single platform
Made available to you by M+ Global, you will be able to experience diverse market growth like no other. With diversity, it allows you to have higher liquidity which in turn can help you to hedge against domestic risks.
- You get to access margin financing
Put simply, margin financing is an amount of money that you as an investor can borrow from a brokerage (in this case, it’s M+ Global) to purchase the desired stocks. This way, you get to maximise your purchasing power even more.
- You can manage trading activities on the go via the ‘Watchlists’ feature
Whichever stocks caught your attention, for example, APPL or Apple Inc., you can add to the ‘Watchlists’ feature on the M+ Global app. You may list as much as you want in it. And from there, you’ll be able to view quotes data, news and the financial profile of each stock saved.
- You can enjoy low brokerage fees and commission charge
M+ Global offers you brokerage fees as low as 0.10% of the Trade Value, while the commission charge is as low as US$ 3.00.
Other features include hassle-free currency management where you can trade in the US stock market using a Ringgit Malaysia deposit, plus free deposit and withdrawal fees. There are two features that are coming soon though: Option Trading and Fractional Shares; so don’t miss out on the announcements by M+ Global.
Am I eligible to start investing with M+ Global?
You are eligible to start investing with M+ Global should you be at least 18 years old and above and have a Malaysian bank account.
How to open an M+ Global account?
Opening an M+ Global account is simple and straightforward. Follow the steps below.
First, you must prepare these required documents.
- Your IC or Passport if you're a foreigner
- A Malaysian bank account, plus online banking (with a minimum balance of RM11)
- Salary slips/Form B or BE/Provident fund statements from the past 3 months
Next, download the M+ Global mobile app available in these 3 app stores:
- Google Play Store
- Apple App Store
- Huawei AppGallery
Register for an account by simply entering your mobile number or email address for identity verification. Then, you can set up a login password.
Once you have registered an account, you can proceed to apply for an account opening.
- In the app, find the "Account" page and click "Get started".
- Next, enter your contact information
- Choose or select the market and account type to your liking
- Start the authentication process and complete the CTOS authentication
- Then, enter your personal particular, employment details and financial profile
- After that, provide your investment and taxation details, and accept the necessary declarations
- Review and accept the agreement, and then sign it
- Lastly, pay the account opening fee of RM11 and submit it for approval
Click here to check out the guidelines provided by M+ Global.
Once your account is set, you may start to add any desired stocks to your ‘Watchlists’, deposit funds and start trading right away!
Should you have any questions regarding the account or anything else, you can reach the M+ Global team at their social media accounts or their official website.
Disclaimer: Trading and/or investment involve substantial risks, and the decision to engage in such activities is solely at your own discretion and is not affiliated with or attributable to RinggitPlus.