US Stocks

US stocks represent shares of companies listed on major US stock exchanges like NYSE and NASDAQ. 

You can buy US stocks by opening an account with us. Upon successful account approval, you will be able to purchase US stocks via our signature trading platform, POEMS.  

Introduced by PhillipCapital in 1996, POEMS is Singapore’s first internet trading platform..  

With access to over 26 exchanges around the world, our platform offers a seamless and reliable trading experience. 

The major US stock exchanges are: 

• New York Stock Exchange (NYSE) 
• National Association of Securities Dealers Automated Quotations (NASDAQ) 
• American Stock Exchange (AMEX) 
• Chicago Board Options Exchange (CBOE) 

Yes, POEMS gives users access to NYSE, NASDAQ, AMEX & CBOE. 

Yes, the same rate applies to equities traded on all US exchanges. For options, the rate is US$0.888 per contract, subject to a minimum of US$2.88 per order will apply.  

The benefits include diversification and exposure to global companies. Conversely, some risks include currency fluctuations and market volatility. 

Investing in US stocks via Singapore offers several advantages, such as access to a wide range of large, well-established companies in a robust economy. This provides opportunities for portfolio diversification, as US companies span multiple sectors and industries. Exposure to growth in innovation-driven industries like technology is also a key advantage. 

All investors holding foreign stocks are exposed to currency risk, meaning their investment value could decrease due to unfavourable exchange rate fluctuations. This risk arises because the stock’s value is tied to a foreign currency, and any depreciation in that currency against your home currency can reduce returns. 

Blue-chip stocks are shares of large, established companies known for reliable performance and financial stability. These companies are typically leaders in their respective industries.  

There is a 30% withholding tax on dividends from US stocks for non-US investors.  

Taxi implications depend on your country’s tax treaties with the US and Singapore. It is best for you to consult a professional tax advisor for specifics. 

US indices such as the S&P 500, Dow Jones, and NASDAQ Composite track the performance of groups of US stocks:  

S&P 500: Tracks the performance of 500 large US companies across various sectors, serving as a broad market benchmark. It is weighted by market capitalisation, with larger companies having more influence 

Dow Jones Industrial Average (DJIA): Tracks 30 major US companies, mostly large, well-established firms. It is price-weighted, meaning higher stock prices have more impact on the index 

NASDAQ Composite: Tracks over 3,000 companies listed on the NASDAQ, with a focus on technology and growth stocks, making it more volatile and tech-heavy than other indices 

 While you cannot buy indices directly, you can, however, invest in funds such as  Exchange-Traded Funds (ETFs) or mutual funds, which mirror the performance of the US indices. Both of which are easily accessible through POEMS.  

Investing in individual stocks allows you to focus on specific companies you believe will perform well, offering targeted exposure to specific sectors or industries. This can potentially lead to higher returns if your stock picks perform well, but it also comes with increased risk due to lack of diversification. You are exposed to the fortunes of a single company, which can be more volatile. 

On the other hand, Exchange-Traded Funds (ETFs) provide diversification by pooling a wide range of stocks into one fund. This reduces individual stock risk, as the performance is tied to a broader basket of companies within an index or sector. While ETFs may offer more stable returns over time, the potential for massive gains may be lower compared to selecting high-growth individual stocks. 

POEMS allows you to trade both individual stocks and ETFs within the same platform, giving you the flexibility to choose based on your risk tolerance, investment goals, and strategy. Whether you prefer the potential for high returns with individual stocks or the stability and diversification of ETFs, POEMS provides you with the tools to implement your investment approach. 

Non-US investors must provide identification, proof of address, and tax documentation (e.g., W-8BEN) when investing in US stocks from Singapore. 

Additionally, overseas investors will also be required to undergo the required Customer Account Review (“CAR”) and/or Customer Knowledge Assessment (“CKA”) before trading Specified Investment Products (“SIPs”). 

Dividends are a portion of company profits distributed to shareholders, typically paid quarterly.  

POEMS provide stock tracking tools, market updates, and research materials on US stocks.  Community channels for insights and discussions are also integrated into the POEMS platform for easy access.