Want to Invest in US Stock Index ETFs? Complete Guide to Opening an Account and Placing Orders with an Overseas Broker for Beginners

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If you want to invest in US stocks index ETFs, using an “overseas broker” directly is your best and fastest option. Its biggest advantages are extremely low trading costs and a much wider selection of products.

Facing the unfamiliar account opening and trading process, you might feel a bit anxious. Don’t worry — this article is a practical hands-on manual tailor-made for you. By following our illustrated step-by-step guide, even complete beginners with zero experience can easily complete every step.

Key Takeaways

• Investing in US stock ETFs is a great way to own the entire US market with a small amount of money. It offers low costs, risk diversification, and high transparency.
• Overseas brokers like Firstrade are the best choice for investing in US stock ETFs because of their very low trading costs and full Chinese-language interface.
• Opening an account with Firstrade is very simple — you only need a passport and personal information, and the online application can be completed in about 15 minutes.
• When wiring money to your Firstrade account, remember to select “full amount credited” to ensure your funds arrive in full.
• When placing orders to buy US stock ETFs, beginners should use “limit orders” to control the purchase price and protect your investment.

Beginner’s Guide: Why Invest in US Stock ETFs?

Before we dive into the actual operations, you must first establish one core concept: why choose US stock ETFs? In simple terms, this is a smart way to own the entire US market with a small amount of money.

What is Index Investing? Advantages of Passive ETFs

Imagine that instead of spending effort researching which company will become the next Apple or Amazon, you directly buy a “bundle” that contains hundreds or even thousands of top-performing US companies. This is the core idea of “index investing.”

Passive ETFs (exchange-traded funds that track stock indices) are the best tool to achieve this goal. They have the following key advantages:

• Extremely low costs: ETF expense ratios are very low, meaning more of your money goes toward actual investment rather than paying fund managers.
• Highly diversified risk: You no longer put all your eggs in one basket. Investing in one ETF is equivalent to holding shares of many companies, effectively reducing the risk of any single company failing.
• Simple and transparent: ETFs track specific market indices with fully disclosed holdings. You can always clearly see exactly what you own.

Understanding Common US Stock Indices and ETFs

US stock indices are like the “report card” of the US stock market, reflecting overall market performance. The most well-known is the “S&P 500 Index,” which represents the performance of the top 500 US companies. Over the long term, its returns have been quite stable.

Many ETFs track these famous US indices and have attracted massive capital inflows, becoming popular choices for investors worldwide.

Popular US ETF Comparison: VTI vs. VOO vs. QQQ — Which One to Choose?

Among the many options, beginners most commonly encounter VTI, VOO, and QQQ. Each has its own characteristics, and you can choose based on your investment preferences.

Recommendation for beginners: If you don’t have a strong preference, VTI or VOO are excellent starting points. They have very low fees, excellent diversification, and are perfect for long-term holding to steadily participate in US market growth.

Overseas Broker vs. Domestic Complex Order — Which is Right for You?

After choosing the ETF you want to invest in, the next step is deciding which channel to use to buy it. For investors in Taiwan, there are mainly two options: “overseas brokers” and “domestic broker complex orders.” The biggest difference between the two is cost, which directly affects your long-term returns.

Cost Comparison: Trading Fees and Tax Differences

Transaction costs are a detail you must pay close attention to in investing. Overseas brokers have an overwhelming advantage in this area. Many overseas brokers offer $0 commission on stock and ETF trades, while domestic complex orders come with much higher fees.

Here’s a clear comparison table:

As shown above, using domestic complex orders means paying a significant fee every time you buy or sell, which is especially costly for small-amount investors.

Pros & Cons Analysis and Recommendation

In short, the advantages of domestic complex orders are that funds don’t need to be sent overseas and you get familiar Chinese-language customer service. However, the disadvantages are obvious: very high transaction costs that erode your profits over the long term.

Recommendation for beginners: If you plan to hold long-term and regularly invest in US index ETFs, an “overseas broker” is absolutely your best choice. Although it takes a little time to open an account and make an international wire transfer at the beginning, the trading costs you save will become your most tangible return in the future.

Why Recommend Firstrade as the First Stop for Beginners?

Among many overseas brokers, we especially recommend Firstrade as the starting point for beginners. It is extremely beginner-friendly and has the following key advantages:

• True zero-cost trading: All stock, ETF, and options trades are $0 commission, with no minimum deposit requirement or inactivity fees.
• Full Chinese-language interface: From account opening to trading, Firstrade provides a complete Chinese website and mobile app with no language barrier.
• Designed specifically for beginners: The trading platform and app are intuitive and easy to use, repeatedly receiving high ratings for usability, so you can easily complete your first trade.
• Rich learning resources: Offers tutorial videos and market analysis to help you improve your investing knowledge.

Thanks to these advantages, Firstrade lowers the barrier to investing in US stocks to the minimum. Therefore, the following tutorial will use Firstrade as the example to walk you through the entire process.

Firstrade Account Opening Guide: Complete Online Application Steps

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Congratulations! You now understand the huge advantages of investing in US stock ETFs. Now, let’s move on to the most critical practical part: opening your Firstrade account online. The whole process is simpler than you think — the online application can be completed in about 15 minutes.

Rest assured, Firstrade’s fully Chinese-language interface is very intuitive. Just follow the illustrated steps below, and you’ll complete everything smoothly.

Preparation Before Opening an Account: Passport and Personal Information

Before starting the online application, please prepare the following two things to make the process smooth:

• Identity document: You need a valid passport. If you don’t have a passport, you can also use your Taiwan ID card (clear photos of both front and back required).
  • The passport must be within its validity period.
  • Remember to sign your name (in Chinese or English) on the signature page of the passport.
• Basic personal information: Prepare your English name, English translation of your residential address, and your email address.

Tip: It’s recommended to take clear photos of the front and back of your passport or ID card with your phone in advance and save them on your computer or phone. Make sure the photos are clear, complete, and free of reflections to speed up the subsequent review process.

Online Registration and Mobile Verification

Once you’re ready, you can start registering.

1. Go to the official Firstrade website and click “Open Account Now” on the screen.
2. Enter your mobile phone number and click “Get Verification Code”.
3. Your phone will receive an SMS verification code. Enter this code in the web field to complete mobile verification.

This step confirms that you are the one performing the operation — it’s the first line of defense for account security.

Upload Identity Documents

After completing mobile verification, the system will guide you to upload the identity documents you prepared earlier.

You can choose to upload your passport or Taiwan ID card here. Follow the page instructions to upload clear photos of the front and back of your document. This step verifies your identity to comply with financial regulations.

Fill Out W-8BEN Form and Personal Information

Next comes a step that many beginners find confusing but is actually very important: filling out the W-8BEN form.

What is the W-8BEN form? This is a declaration document for “non-US tax residents.” The main purpose is to prove to the US government that you are not a US person, so that dividends you receive from US stocks in the future will be taxed at the foreign resident rate instead of the higher US citizen rate.

Fortunately, in Firstrade’s online account opening process, you don’t need to download and fill out a complicated paper form yourself. The system will guide you to enter some personal information and automatically generate the W-8BEN form for you. The information you need to provide includes:

• Full name (must match your passport exactly)
• Country of citizenship (select Taiwan)
• Permanent residential address (enter your current address in English)
• Foreign Tax Identification Number (FTIN): For Taiwanese residents, this is your Taiwan ID number.
• Date of birth

Just honestly fill in the information according to the Chinese prompts on the webpage. This digitized process greatly simplifies the previously cumbersome paper-based procedure.

Set Account Password and Wait for Approval

After filling in all information and electronically signing the documents, the final step is to set the username and password you will use to log in to your account in the future. Be sure to create a strong password and keep it safe.

After submitting all application materials, your task is complete! Next, you just need to wait patiently.

Firstrade’s review team will process your account opening application, which usually takes 1–2 business days. Once approved, you will receive an email notifying you that your account has been successfully opened. After receiving the email, you can proceed to the next step: funding your account!

Funding an Overseas Broker Account: International Wire Transfer Process

After your account is activated, the next step is to transfer funds from your Taiwan bank account to Firstrade — this process is called “funding” or “deposit.” International wire transfers may sound complicated, but as long as you follow the steps, you can complete it smoothly. This money will be your starting capital for investing in the US market.

Check Broker Receiving Bank Details

First, you need to obtain Firstrade’s receiving bank information — it’s like the “address” for the wire transfer. You can find it directly on Firstrade’s official website under “Customer Service” > “Fund Account.” For your convenience, we have organized the most important information here:

Important reminders before wiring:

• The remitter’s name must exactly match your Firstrade account name.
• In the remarks or message field, be sure to include your Firstrade account number and full English name so the funds are credited correctly.
• Firstrade does not accept funds from third parties or online remittance services (such as Wise or PayPal).

Detailed Online Banking Wire Transfer Steps

Now, log in to your online banking to perform the transfer. Although each bank’s interface is slightly different, the general process is as follows:

1. Log in to your online banking and find “Foreign Exchange Services” or “International Wire Transfer.”
2. Select the outgoing currency as “USD.”
3. Fill in the recipient bank name, ABA routing number, recipient account number, etc., according to the table above.
4. In the “Remarks” or “Message to Recipient” field, enter your Firstrade account number and full English name again.
5. Enter the USD amount you wish to transfer, confirm all information is correct, and submit.

Wire Transfer Fees and “Full Amount Credited” Technique

International wire transfers incur fees, mainly the “cable charge” from your Taiwan bank and possible fees from intermediary banks abroad. Taiwan bank fees are usually around $7 USD or more, depending on the bank.

Essential beginner technique: Choose “Full Amount Credited”
In the fee options during the transfer, you will see different choices. Be sure to select “Full Amount Credited” (also called “OUR”), which means the sender (you) pays all fees. This ensures the full amount you send arrives at Firstrade without any deductions along the way.

Confirm Funds Have Arrived

After completing the transfer, please wait patiently. Because international wires go through the SWIFT network and considering banking hours and time differences between Taiwan and the US, funds typically take 1–3 business days to arrive in your Firstrade account.

When the funds successfully arrive, Firstrade will send you an email notification. You can also log in to your Firstrade account and check the account balance to confirm the funds are there. Once you see the amount, you’re ready for the next step: placing your trade!

US ETF Order Placement Guide: Complete Your First Trade

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After the funds successfully arrive, congratulations — you’ve reached the final and most exciting step: placing an order to buy your first US stock ETF! The process is very intuitive. Just follow our guide, and you’ll complete the trade smoothly. We’ll use purchasing VOO (which tracks the S&P 500 Index) as an example to walk you through the entire process.

Log In to Your Account and Get Familiar with the Trading Interface

First, log in to your Firstrade account. After logging in successfully, you’ll see the main screen of the trading platform. Firstrade’s interface is very intuitive, designed for both active traders and beginners, and offers a customizable dashboard so you can see all important information at a glance.

For beginners, you don’t need to understand every button right away. At the start, just focus on a few core areas:

• Account Overview: Here you can see your current account balance, holdings, and buying power.
• Trade Order Section: This is where you enter the stock symbol, price, and quantity.
• Market Information: Provides real-time quotes and market updates to help you stay informed.

Firstrade’s platform integrates comprehensive research tools and advanced trading features, such as setting price alerts or using streaming charts. But for now, let’s focus on completing your first trade.

Search for the ETF Symbol and View Quotes

At the top or side of the trading platform, you’ll find a “Search” or “Quote” field.

1. Enter the ETF symbol you want to buy in the field. For example, type VOO.
2. Press Enter or click search, and the system will take you to the detailed quote page for VOO.

On this page, you can see the ETF’s real-time price, daily change, volume, and other important information. Take a moment to get familiar with this data — it’s the basis for making trading decisions.

Set Trading Conditions: Limit Price and Number of Shares

Once you’re satisfied with the price, you’re ready to place the order. In the order entry section, you need to set several key conditions.

Why beginners should use limit orders? A market order executes immediately at the best available price, but during high volatility, your final execution price could be much higher than expected. A limit order ensures your execution price will not exceed the price you set — it’s the first line of defense to control costs.

Suppose VOO’s current market price is $503.50. You can set a limit price of $503.50 or $503.40. This means your order will only fill if the price is at or below your limit. This allows you to precisely participate in investing in large-cap US index-tracking ETFs like VOO.

Submit the Order and Confirm Execution

Carefully review all the trading conditions you entered: Buy, VOO, quantity, limit price. Once confirmed correct, click “Preview.”

The system will display a final confirmation window listing all details of the trade, including the estimated total cost. Double-check everything, then click “Place Order.”

After submission, your order enters the market awaiting execution. You can check the order status in the following ways:

• Check order status: Go to “My Account” > “Orders” page to see the status of the order you just placed. If it shows “Filled,” congratulations — you’ve successfully purchased!
• Confirm trade record: After the trade is completed, Firstrade will send a formal trade confirmation to your email. This document records key trade details such as execution date, security name, quantity, and price.

It’s recommended to reconcile the trade confirmation you receive with your account statement to ensure all records are accurate.

Congratulations! You have successfully taken your first step to becoming a US stock investor and personally completed your first overseas investment.

Looking back on this journey, you have mastered the complete process from choosing an ETF, opening an account, funding, to placing orders.

Remember, the key to successful index investing is long-term holding. Stay focused on your long-term financial goals and avoid anxiety from short-term market fluctuations or checking your account too frequently.

Congratulations on taking your first step toward becoming a US stock investor — start taking action now!

Frequently Asked Questions

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

Not at all. US stock ETFs can be bought share by share, and many popular ETFs cost only a few hundred dollars per share. You can start your investment journey with just one share according to your budget and gradually accumulate assets.

Do I need to pay tax on profits from selling ETFs?

For Taiwanese investors, overseas capital gains (price difference profits) are counted as “overseas income.” You only need to declare it if your total overseas income exceeds a certain threshold. Most beginners won’t reach this level in the early stages.

Dividend tax reminder: Dividends you receive will have 30% tax withheld at source. This is deducted automatically — you don’t need to do anything extra.

Is it safe to wire money to an overseas broker?

Very safe. US brokers like Firstrade are protected by the Securities Investor Protection Corporation (SIPC). Your securities account is insured up to $500,000 USD, and your funds are legally protected.

How often should I buy ETFs?

It depends on your financial plan. Many people choose “dollar-cost averaging,” such as investing a fixed amount every month or every quarter. This strategy helps average your cost, avoid buying high and selling low, and is very suitable for long-term investment.