US Stock Market for Beginners 2025: Trading Hours, Broker Comparison & Tax Rules Fully Explained

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Investing in US stocks is actually much simpler than most people think. Many want to start but get stuck at the very first step.

Do you often get confused about today’s US stock market opening time?
Not sure whether to use a domestic broker or an overseas one?
Worried that your hard-earned profits will be heavily taxed by the US government?

Don’t worry! This article is your ultimate cheat sheet. We’ll explain everything in the simplest way possible so you can confidently take your first step into US stock investing.

Key Takeaways

• US stock trading hours are divided into summer (DST) and winter sessions; Taiwan investors need to convert the time difference and be cautious of pre-market and after-hours risks.
• There are two main ways to invest in US stocks: domestic complex order brokers offer Chinese-language service but higher fees; overseas brokers have ultra-low (often $0) commissions but require handling remittances and English interfaces yourself.
• Beginners should use “limit orders” to control purchase price and start with a “cash account” to avoid high-risk margin trading.
• Non-US investors enjoy full capital gains tax exemption on US stocks, but dividends are subject to 30% withholding tax – you must submit Form W-8BEN to prove non-US resident status.
• US stocks have very low entry barriers and support fractional shares, making them perfect for small investors. Choose your account type based on your preference for convenience vs cost.

Decoding US Stock Trading Hours

To invest in US stocks, the first thing you must know is when the market actually opens! After all, there’s a huge time difference, and you don’t want to stay up all night staring at the screen. Let’s completely demystify US trading hours.

Regular Trading Hours & Features

The two major US exchanges, the New York Stock Exchange (NYSE) and Nasdaq, have fixed trading hours.

US Regular Trading Hours

• Eastern Time (ET): Monday to Friday, 9:30 AM – 4:00 PM
• Key feature: This is the most active period with the highest volume. Most institutional and retail traders operate during these hours, so prices best reflect real market conditions.

Markets are closed on weekends and US federal holidays – same as Taiwan.

Today’s US Stock Market Opening Time (Taiwan Conversion)

The US uses Daylight Saving Time, so there are two different conversion periods. To know today’s US stock market opening time, just remember this simple rule:

• Daylight Saving Time (roughly March to November): Taiwan time 9:30 PM open – 4:00 AM next day close.
• Standard Time (roughly November to next March): Taiwan time 10:30 PM open – 5:00 AM next day close.

Quick tip: In 2025, DST starts on March 9 and ends on November 2. In short – summer opens one hour earlier, winter opens one hour later.

What Are Pre-Market and After-Hours Trading?

You may have heard of “pre-market” and “after-hours” trading – these are extended sessions outside regular hours.

• Pre-market: Roughly 4:00 AM – 9:30 AM ET.
• After-hours: Roughly 4:00 PM – 8:00 PM ET.

Beginner warning! Although extended hours let you react early to news, they come with risks:

• Low liquidity: Few participants mean your order may not fill.
• High volatility: Small volume can cause wild price swings.

Beginners should stick to regular hours until you’re more experienced.

Quick Intro to the Three Major US Indices

When news says today’s US stock market surged or plunged, they’re usually referring to these three indices – they act like thermometers for the overall market.

How to Open a US Stock Account?

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Now that you understand trading hours, the next step is choosing your “battle partner” – your broker! This is your gateway to the US market, and choosing the right one makes everything much easier. For beginners, there are two main paths with very different pros and cons.

Option 1: Domestic Broker Complex Order (複委託)

What is “complex order”? Simply put, you place US stock orders through your familiar Taiwanese broker (e.g., KGI Securities, Yuanta, etc.).

How it works: You submit the order to your Taiwan broker, who then forwards it to their US partner broker – they act as the middleman handling all cross-border details.

The biggest advantage is convenience and peace of mind.

• Local service is super convenient: Full Chinese interface and Chinese customer support – call anytime with zero language barrier.
• Easy funding: Settle directly in your TWD account – no complicated overseas remittances.
• Full shareholder rights: You are the actual stock owner and receive dividends and voting rights.

But convenience comes at a price.

• Higher trading costs: The extra intermediary layer means significantly higher commissions.
• Slower execution: One extra step means slightly slower order routing.

Option 2: Direct Overseas Online Broker

The other route is to skip the middleman and open an account directly with a US online broker (e.g., Interactive Brokers, Fidelity, Charles Schwab). The process is now extremely user-friendly – like signing up for a new social media account, all from your phone or computer.

The biggest appeal is extremely low (often $0) trading commissions.

Many overseas brokers now offer $0 commission on US stocks and ETFs – perfect for frequent traders or regular dollar-cost averaging!

You might worry: “Is my money safe with an overseas broker?” Absolutely safe! The US has the Securities Investor Protection Corporation (SIPC), which provides up to ＄500,000 USD of protection per account ($250,000 cash limit). This protection applies to all nationalities – non-US investors get the exact same coverage as US citizens.

Many major brokers even offer excess SIPC insurance – for example, Fidelity provides up to $1 billion total coverage.

After opening the account, you can wire funds internationally – using a Hong Kong licensed bank or platforms like Biyapay that support multiple currencies for faster transfers.

Huge Difference in Fee Structure

Fees are a core part of your investing cost, and the gap between domestic complex order and overseas brokers is massive. Here’s a clear comparison table to help you decide.

Account Type: Cash vs Margin

At the final step of opening an account, you’ll choose between a “Cash Account” and a “Margin Account”.

• Cash Account: The simplest type. You can only buy with the money actually in your account – no borrowing.
• Margin Account: Allows you to borrow from the broker to increase buying power. It can amplify gains but also amplifies losses dramatically.

Sincere advice for beginners: Always start with a Cash Account! Your first goal is to learn the market safely with your own money, not chase high-risk returns.

Beginner Order Placement Walkthrough

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Congratulations! Once your account is open, you have your ticket to the US market. Now let’s walk through placing your first order – it’s as easy as online shopping.

Log In to Your Broker App

Open your broker’s app and log in. You’ll see a dashboard with your account overview, portfolio performance, and market updates. When ready to trade, go to the “Trade” or “Order” page – the interface is very intuitive.

• Order type selection
• Quantity and price input
• Real-time submit/modify/cancel functions

Search for Your Target Stock or ETF

Type the full company name (e.g., Apple Inc.) or ticker symbol (e.g., AAPL) into the search bar.

Beginner tip: Always search by ticker symbol – it’s unique and prevents buying the wrong stock.

Enter Price and Quantity

Now enter how many shares and at what price. Beginners must understand these two order types:

Review and Confirm

The system shows a final confirmation screen – double-check everything:

• Correct ticker?
• Correct quantity?
• Right order type and price?
• Total cost accurate?

Once confirmed, hit “Submit” – your first US stock trade is complete!

Complete Guide to US Stock Tax Rules

When money is involved, taxes are everyone’s biggest concern. Many fear that profits will be eaten by heavy US taxes. Relax! As a non-US investor, your tax situation is actually much simpler than US citizens’. Let’s cover everything you need to know.

Key Tax for Non-US Investors: 30% Dividend Withholding

When a company pays a dividend, the US government withholds tax upfront.

For non-US investors, the dividend withholding rate is a flat 30%. Your broker deducts and pays it to the IRS automatically – you don’t file anything.

Example: If Apple pays you $100 dividend, you receive $70 after the $30 tax is withheld.

Unfortunately, there is no US-Taiwan tax treaty, so the full 30% rate applies.

Capital Gains: Do You Pay Tax on Profits?

Great news! Capital gains (the profit when you sell higher than you bought) are completely tax-free for non-US residents as long as you spend less than 183 days per year in the US.

This is a huge advantage – all your trading profits go straight into your pocket.

Must-File for Tax Savings: What Is Form W-8BEN?

How does the IRS know you’re a foreigner entitled to capital gains exemption? Through Form W-8BEN – Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting.

This form proves to your broker and the IRS that you are not a US tax resident.

Your broker will guide you to fill it online during account opening.

Critical reminder: Without a valid W-8BEN, your broker may withhold up to 30% on everything – including gains. Always complete and update this form!

The Distant Concern: US Estate Tax

One long-term issue is estate tax. Non-US residents have only a $60,000 USD exemption. Assets above that can face up to 40% estate tax upon death.

This is a high rate, but for most beginning investors, it’s not an immediate worry. When your portfolio grows large, consult a professional tax advisor.

Congratulations – you’ve reached the end! We’ve covered the four core areas of US stock investing:

• Master trading hours – never miss the open again
• Choose the right broker – find the one that fits you
• Learn order placement – buy your first stock with confidence
• Understand key taxes – know exactly what you keep

As you can see, catching up with today’s US stock market is not difficult at all! You now have all the essential knowledge. It’s time to take the first step and begin your global investing journey!

FAQ

Here are the most common beginner questions to clear your final doubts!

Do I need a lot of money to invest in US stocks?

Not at all! One of the best features is fractional shares.

You can buy just $10–$20 worth of expensive stocks like Amazon (AMZN) – 0.01 share is fine. The entry barrier is extremely low and perfect for small investors.

Should I choose complex order or overseas broker?

It completely depends on your priorities.

If you want maximum convenience and full Chinese support and don’t mind higher fees → choose domestic complex order.
If you want to save huge on commissions and are okay with English + handling remittances → overseas broker is the clear winner.

Do I need to speak English to invest in US stocks?

Not necessarily!

• Domestic complex order: Full Chinese interface and support – zero language issue.
• Overseas brokers: Mostly English, but many (like Interactive Brokers) now offer partial Chinese interfaces and are becoming more beginner-friendly.

Is there any way to avoid the 30% dividend tax?

For Taiwan residents, the 30% withholding is unavoidable because there is no US-Taiwan tax treaty.

The broker will deduct it automatically. However, you can focus on growth stocks that pay little or no dividends – then you only enjoy tax-free capital gains!