Why Malaysians are Suddening Obsessed with the US Stock Market
My friend messaged me last month asking me how to buy some Nvidia stock while in Malaysia. Two years ago the exact same friend did not even know what is a brokerage account. Somehow the world changed. Not only for my friend. 
What was the main hurdle then used to be the access. Some was a combination of red tape to open a US brokerage account while remaining in Malaysia and also the hassle and hidden fees associated with currency conversion and some sometimes not so tiny minimum deposit. All of that has been largely resolved. Better app technology and that changed everything. Malaysians can now my site buy fractional shares of even Apple or Tesla even with less than USD10. This is because the app allows people to buy pieces rather than the entire share of say Apple stock at more than USD200 a share. This alone unlocked access to hundreds of first-time investors who previously thought that buying a US stock can only happen with very large amounts of capital. Commissions fell to zero on US trades in some apps, although currency conversion fees can still erode profits if you are not careful. Check out those small print carefully, and do not get lured by 'free trade' slogans on some app. Not all investors are interested only in the meme stocks like Tesla and Nvidia While meme stocks and tickers related to AI capture the mind of many investors (and the headlines), quite many Malaysian investors were diligently investing their funds in US index funds and ETFs – particularly the S&P 500 which are mentioned a lot in local investing forums. They might not be as exciting but historically also more rewarding than buying volatile stocks in the short term. Another argument for US stock investment which keeps coming up isdiversification. Malaysian stock market is relatively less liquid and smaller compared to the US market and local investors realize that by only putting their capital into Bursa Malaysia, they only have limited access to the growth areas in global tech which is hardly represented in the local bourse. The ignored currency exchange rate between MYR and USD. When an investor trades US stocks, he trades with USD. The performance of the Malaysian Ringgit against the dollar would obviously affect the return of investment – both positively and negatively. Ignoring the USD/MYR exchange rate might result in an unpleasant surprise when an investor eventually cash in and withdraw their investment. All these might seem complicated at first glance but will likely become familiar after just a few transactions. Malaysians simply take some time to realize the door is already wide open.
What was the main hurdle then used to be the access. Some was a combination of red tape to open a US brokerage account while remaining in Malaysia and also the hassle and hidden fees associated with currency conversion and some sometimes not so tiny minimum deposit. All of that has been largely resolved. Better app technology and that changed everything. Malaysians can now my site buy fractional shares of even Apple or Tesla even with less than USD10. This is because the app allows people to buy pieces rather than the entire share of say Apple stock at more than USD200 a share. This alone unlocked access to hundreds of first-time investors who previously thought that buying a US stock can only happen with very large amounts of capital. Commissions fell to zero on US trades in some apps, although currency conversion fees can still erode profits if you are not careful. Check out those small print carefully, and do not get lured by 'free trade' slogans on some app. Not all investors are interested only in the meme stocks like Tesla and Nvidia While meme stocks and tickers related to AI capture the mind of many investors (and the headlines), quite many Malaysian investors were diligently investing their funds in US index funds and ETFs – particularly the S&P 500 which are mentioned a lot in local investing forums. They might not be as exciting but historically also more rewarding than buying volatile stocks in the short term. Another argument for US stock investment which keeps coming up isdiversification. Malaysian stock market is relatively less liquid and smaller compared to the US market and local investors realize that by only putting their capital into Bursa Malaysia, they only have limited access to the growth areas in global tech which is hardly represented in the local bourse. The ignored currency exchange rate between MYR and USD. When an investor trades US stocks, he trades with USD. The performance of the Malaysian Ringgit against the dollar would obviously affect the return of investment – both positively and negatively. Ignoring the USD/MYR exchange rate might result in an unpleasant surprise when an investor eventually cash in and withdraw their investment. All these might seem complicated at first glance but will likely become familiar after just a few transactions. Malaysians simply take some time to realize the door is already wide open.