How to invest in US stock market from Dubai with an eye to the future? There are 3 most obvious options. And as is often the case, there is no better one for trading in Dubai as Avatrade and etoro. Depending on the goals and capabilities of the investor, each method will have its own pros and cons.
Best online trading platform in UAE
Option 1 – Buy ETF from one of the top 10 Forex trading companies in Dubai
In this way, the investor has about a dozen of the best online trading platform in UAE to choose from. Basically, of course, the S&P 500 index. Another couple of three are aimed at the IT sector.
In one bottle (ETF) we get a ready-made portfolio – several hundred shares at once. And for ridiculous money – just a few hundred $ is a fund share. Compare this to the price of one share of Amazon (> $ 3,000) or Google (> $ 1,500) and you will immediately see the benefits of this approach.
Forex trading in Dubai
A trader does not need to constantly puzzle over and think about how to invest in US stock market from Dubai and which stocks to buy today:
– Coca-Cola or Pepsi?
– Johnson & Johnson or Procter & Gamble?
– Visa or Mastercard?
Buying an ETF on etoro or at Avatrade will keep investment-related procedures to a minimum. Top up your account once or twice a month and press the “BUY” button. Everything about everything on time will take less than one hour for a whole year.
The main disadvantages of this way of forex trading in Dubai are:
– No cash flow.
How to invest in US stock market from Dubai
Option 2 – Contact a foreign broker.
The problems of high commissions of Dubai funds and lack of dividends are solved by switching to a foreign broker (such as Avatrade).
Brokers such as TF VOO or SPY, tracking the S & P500, charge investors 0.03 – 0.09% per year. From the invested million – the management commission will be only 300 rubles per year. Dividends are paid every quarter. Isn’t that wonderful?
The main disadvantage is that every year you need to draw up a tax return and pay taxes yourself. In principle, if you are a passive investor and do not make tens or hundreds of transactions, but only buy, then this is not a problem for you.
Option 3 – Build a portfolio of stocks yourself.
US stocks are traded on the UAE exchanges without any problems at Trading in Dubai. At first glance, this approach has some advantages:
– No management fees. Shares can be held for free indefinitely. Save millions in commissions.
– Low brokerage costs. On average, an investor will pay only for purchases (one-time – hundredths of a percent of the transaction). No deals – no expenses (this is when compared with a foreign broker).
– Cash flow – you want to spend dividends, you want to reinvest. On average, American companies pay divas 4 times a year. A portfolio can even partially replace a financial airbag. Why keep bonds with a low coupon when you will receive divas almost every week.
The main difficulties that you will face in this case:
– We need some kind of strategy, a rule according to which a portfolio of shares will be recruited.
– Labor costs increase significantly (you need to think a hundred times why all this is being started).
– Money. With little capital, there is probably no point in starting such an initiative. Even if successful, the profit will be very small.
Top 10 Forex trading companies in Dubai
We hope that in this article we were able to answer the question “how to invest in us stock market from Dubai?” We wish you successful trading with one of our top 10 Forex trading companies in Dubai!