Want to Learn How to Trade US Stocks? This Beginner Lazy Pack Helps You Get Started Quickly

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Is your savings being quietly “eaten away” by inflation? Learning to invest is an effective way to protect wealth. Investing in US stocks gives you the opportunity to become a shareholder in trillion-dollar market cap companies like NVIDIA. Many people are curious about how to trade US stocks; in fact, the threshold is not high, and you can start with one share. This guide will break down all the steps for you, allowing you to start from zero and easily take your first investment step.

Key Points

• Investing in US stocks is a good way to protect wealth, and you can start with one share.
• Choosing an overseas broker is better than sub-brokerage because of lower costs, more choices, and guaranteed fund security.
• Opening an account requires preparing identity and address proof; filling out the W-8BEN form online is very important.
• When funding, funds must be transferred from your own bank account.
• Beginners should first practice with a paper trading account to familiarize themselves with trading operations and test investment strategies.
• US stock trading has Daylight Saving Time and Standard Time; be careful with pre-market and after-hours trading.
• Beginners can start with investing in index ETFs, such as those tracking the S&P 500 or Nasdaq-100.
• Use free financial websites and news tools to help you make better investment decisions.

Using “tools” well saves beginners from two common traps: detours and emotion-driven decisions. In practice, you can start by checking the target company’s price context, key events, and basic metrics via BiyaPay’s stock info lookup, then return to the article to compare what changed versus what was merely expected. If you’re also evaluating funding costs across brokers or the opportunity cost of holding USD, log currency moves with the FX rate converter & comparison tool so FX noise doesn’t accidentally drive your stock thesis.

When you move from “understanding” to “execution,” keep the workflow standardized: open access through the registration page, then review a unified trading entry to understand basic order flow, fees, and order types. BiyaPay is positioned as a multi-asset trading wallet across cross-border payments, investing, trading, and fund management, with multi-jurisdiction compliance credentials (including U.S. MSB and New Zealand FSP registration). so it works best as a supporting layer for US-stock info checks and cross-market validation.

US Stock Account Opening: Choose Your Entry Broker

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Choosing the right broker is your first step on the investment road and the most critical one. A good broker platform can make you twice as effective with half the effort. Next, we will analyze the two mainstream account opening methods for you and guide you step-by-step through the process.

Overseas Broker vs. Sub-Brokerage Comparison

Investing in US stocks mainly goes through “overseas brokers” and “sub-brokerage” channels. You need to understand their core differences to make the choice most suitable for you.

Core Advantages and Disadvantages of Both

Simply put, an overseas broker is like a direct flight, where you open an account directly with a US broker; sub-brokerage is like a connecting flight, where you invest in US stocks through a local broker. Their differences mainly lie in cost, convenience, and investment range.

Why Beginners Prefer Overseas Brokers

Although sub-brokerage seems more convenient, for those planning long-term investment, overseas brokers are the better choice.

There are three main reasons:

1. Extremely Low Cost: In the long run, trading costs are an important factor affecting your returns. Overseas brokers have highly competitive commissions, for example, Futu Securities and Tiger Brokers charge as low as ＄0.99 per trade for US stocks, and Interactive Brokers’ minimum fee is only $1.00. This has a huge advantage compared to sub-brokerage starting at $15 per trade.
2. Broader Investment Choices: Overseas brokers provide comprehensive investment products. Besides US stocks, you can invest in Hong Kong stocks, UK stocks, Japanese stocks, and other global markets, as well as options, futures, and other derivatives, providing more possibilities for your portfolio.
3. Clear Fund Security Guarantee: Your account is directly opened at a broker regulated by the Securities Investor Protection Corporation (SIPC). SIPC provides up to $500,000 protection per customer account (including $250,000 for cash claims). This protection applies regardless of nationality, and as long as you open an account at an SIPC member broker, you enjoy equal protection whether you are a US citizen or not.

SIPC Tip If you have multiple different types of accounts at the same broker (e.g., one individual account and one joint account), each account will separately receive up to $500,000 protection. But if you have multiple same-type accounts (e.g., two individual accounts), they will be combined, with total protection of $500,000.

Mainstream Overseas Broker Account Opening Process

Choosing an overseas broker sounds complex, but now the entire process is fully online, usually completing the application in 15-30 minutes. We take a mainstream broker as an example to show you the specific steps.

Required Materials List for Account Opening

Before starting the application, prepare electronic versions (photos or scans) of the following documents:

• Identity Proof: Your passport, ID card, or driver’s license.
• Address Proof: Utility bill, bank statement, or credit card statement from the last three months, showing your name and detailed address.

Note: Identity proof and address proof cannot use the same document. For example, if you use a driver’s license as identity proof, you cannot use it again for address proof.

Online Application Step-by-Step Guide

Most brokers’ online application processes are similar, mainly including filling personal information, identity verification, and signing agreements.

1. Visit Official Website, Choose Account Opening: Go to your chosen broker’s official website, click “Open Account,” and select “Individual Account.”
2. Fill Personal Information: Fill in your name, email, residential address, occupation, income, etc., as required. Please ensure all information is in English or Pinyin and completely consistent with your proof documents.
3. Set Trading Experience and Goals: The broker will ask you to choose your investment experience and goals. As a beginner, you can fill truthfully; this usually does not affect account opening.
4. Tax Information (W-8BEN Form): This is a key step. You need to fill out the W-8BEN form online, declaring your non-US tax resident status. This way, capital gains from selling stocks are tax-free in the US. The form is auto-generated; you just confirm information and e-sign.
5. Upload Proof Documents: Upload your prepared identity and address proof files.
6. Identity Verification: Some brokers require facial recognition via mobile to confirm it is you operating.
7. Sign Agreements: Read and agree to all account opening agreements; after e-signing, your application is successfully submitted.

What if Application is Delayed? After submission, brokers usually need 1-3 business days for review. If delayed, most common reasons include:

• Information Inconsistency: Name or address on application differs from proof documents.
• Unclear Documents: Uploaded photos blurry or documents expired.
• Tax ID Issues: If you have multiple tax residences, provide all related tax IDs. Ensuring submitted information is accurate greatly speeds up review.

Bank Wire Funding Guide

After account approval, the next step is depositing funds. The mainstream funding method is bank wire transfer.

• Traditional Wire Transfer: You need to wire from your own bank account (e.g., an account at a licensed Hong Kong bank) to the broker’s designated receiving account. When wiring, be sure to accurately fill your broker account number and name in remarks or notes for broker identification.
• New Digital Wallets: In recent years, some new digital payment tools provide convenience for cross-border funding. For example, you can use platforms like Biyapay, which support multiple digital assets, helping you complete fund cross-border transfers more flexibly and efficiently.

No matter which method, ensure funds are transferred from your own account; this is a strict anti-money laundering requirement.

Risk-Free Practice: Open a Paper Trading Account

Before investing real funds, strongly recommend first using the broker’s free paper trading account for practice. This is crucial for mastering how to trade US stocks.

Familiarize with Order Placement and Chart Viewing

Almost all mainstream brokers automatically create a paper trading account for new clients, usually with $1,000,000 virtual funds. You can use this account to:

• Learn how to place buy and sell orders.
• Familiarize with different order types, such as market orders and limit orders.
• Understand how to view stock charts, read financial reports, and news.

Test Your Investment Strategies

Paper trading accounts are not only for familiarizing operations but also an excellent testing ground for investment ideas. You can use them to:

• Try buying stocks you are interested in within a real market environment (data usually 10-15 minutes delayed).
• Build a virtual portfolio and observe its performance.
• Feel market fluctuations without actual loss risk, training your investment mindset.

Through paper trading, you accumulate valuable practical experience in a zero-risk environment, laying a solid foundation for your real investment journey.

How to Trade US Stocks: Master Core Trading Rules

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After successful account opening, you are one step closer to actual trading. Before investing real money, you must understand the basic “game rules” of the US stock market. Mastering these rules is a key step in learning how to trade US stocks, helping you avoid unnecessary losses.

US Stock Trading Hours Essentials

US stocks are not traded 24 hours; you need to know regular trading sessions and special pre-market and after-hours trading.

Daylight Saving Time and Standard Time Opening Hours

The US has Daylight Saving Time and Standard Time, affecting corresponding opening and closing times. Since 2007, US Daylight Saving Time starts on the second Sunday in March and ends on the first Sunday in November.

• Daylight Saving Time: Trading hours correspond to Beijing time 21:30 - 04:00.
• Standard Time: Trading hours correspond to Beijing time 22:30 - 05:00.

Pre-Market and After-Hours Trading Explanation

Besides regular sessions, US stocks allow pre-market and after-hours trading. This provides investors opportunities to react in advance to off-hours news (such as earnings releases). But you need to be extra careful.

Beginner Trading Tip Pre-market and after-hours trading volumes are far lower than regular sessions, leading to insufficient liquidity, wider bid-ask spreads, and violent price swings. Your execution price may be far from expected. Therefore, strongly recommend beginners only use limit orders (limit orders) for trading to control buy or sell prices, avoiding slippage risks from market orders.

Key Trading Mechanisms

To understand how to trade US stocks, master some core trading mechanisms.

Trading Unit: Buy and Sell One Share

US stock trading is very flexible, with the minimum unit one share. This means you do not need to buy a “lot” (usually 100 shares) to invest; even for stocks priced hundreds of dollars, you can buy just one share to become a shareholder, greatly lowering the investment threshold.

Price Limits and Circuit Breaker Mechanism

Unlike A-shares, US individual stocks have no daily price limit; theoretically, prices can rise or fall any amount in one day. But to prevent market panic selling, US stocks have a market-wide “circuit breaker mechanism.” Based on S&P 500 declines, divided into three levels:

• Level 1 Circuit Breaker: Market down 7%, trading halted 15 minutes.
• Level 2 Circuit Breaker: Market down 13%, halted another 15 minutes.
• Level 3 Circuit Breaker: Market down 20%, market closed for the day.

Historically, circuit breaker triggers are very rare. The most recent four occurred in March 2020 market turmoil, enough to show it is a protective measure for extreme situations.

Tax Issues and W-8BEN Form

As a non-US tax resident, you need to understand relevant tax rules.

30% Dividend Tax Details

Good news: Capital gains from buying and selling stocks are tax-free. But if held stocks pay dividends, 30% dividend tax is required. This tax is usually automatically withheld by the broker when you receive dividends and paid on your behalf.

W-8BEN Form Filling Tutorial

The W-8BEN form is your declaration as a non-US resident. Filling this form online during account opening is crucial. If you fail to submit W-8BEN, the broker will default you as a US tax resident, withholding up to 30% tax on all your income (including dividends and stock sale proceeds). Therefore, accurately fill this form during opening and update timely with personal information changes.

Beginner Stock Selection: How to Buy Your First US Stock?

You have successfully opened an account and understood basic rules; now comes the most exciting part: picking your first US stock. Facing thousands of listed companies, beginners often feel overwhelmed. Don’t worry; this section provides clear stock selection ideas, telling you how to trade US stocks and where to start building your portfolio.

Beginner Preferred Strategy: Start with Index ETFs

For beginners, directly picking individual stocks is like finding a specific tree in a forest, difficult. A safer, simpler starting point is investing in index ETFs.

What is an ETF?

ETF stands for “Exchange-Traded Fund.” You can think of it as a carefully curated “stock basket.” This basket contains not just one type but a variety of stocks according to specific rules (e.g., tracking an index).

When you buy one share of an ETF, you are proportionally buying all stocks it includes simultaneously. The benefits are obvious:

• Risk Dispersion: You no longer pin all hopes on one company. Even if one stock in the basket falls, others may offset losses.
• Time and Effort Saving: You do not need to spend much time researching dozens or hundreds of companies; fund managers do it for you.
• Extremely Low Threshold: Like trading individual stocks, you can start with one ETF share.

Know Core Index ETFs

Index ETFs aim to track specific market index performance. As a beginner, start with ETFs tracking two core US indices.

1. ETFs Tracking the S&P 500 Index The S&P 500 Index includes 500 most representative large US companies, seen as a barometer of the US economy. Investing in such ETFs means one-click becoming a shareholder in top US enterprises.
   • VOO (Vanguard S&P 500 ETF)
   • IVV (iShares Core S&P 500 ETF)
   • SPY (SPDR S&P 500 ETF Trust)

   Expense Ratio Tip ETFs charge management fees called “expense ratio.” The lower the ratio, the lower your investment cost. When choosing ETFs tracking the same index, expense is an important consideration.

   ETF Name	Expense Ratio
   VOO	0.03%
   IVV	0.03%
   SPY	0.0945%

   From the table, VOO and IVV have extremely competitive expense ratios.

2. ETFs Tracking the Nasdaq-100 Index The Nasdaq-100 Index mainly consists of the 100 largest non-financial companies listed on Nasdaq, with technology companies occupying a large proportion. If you are bullish on the technology industry’s future, such ETFs are good choices.
   • QQQ (Invesco QQQ Trust): This is the most famous and actively traded Nasdaq-100 ETF.

In the past decade, QQQ’s annualized average return reached 19.61%, while VOO was 14.84%. This reflects tech stocks’ strong growth momentum over the past ten years. Of course, high returns come with higher volatility.

Want Broader Diversification? If you want to cover the entire US stock market, consider Vanguard Total Stock Market ETF (VTI). It tracks an index covering all US listed companies, including large, mid, and small caps, providing the most comprehensive market exposure.

Start with Familiar Companies Around You

When you have an initial feel for the market, try picking individual stocks. A simple effective strategy is starting with companies familiar and understood from daily life.

Invest in Consumer Brands You Know

Which brands do you use or see every day? The Coca-Cola you drink, the Apple phone you use, the Nike shoes you wear—these are all powerful listed companies. Investing in familiar companies has two major benefits:

1. Understand Business Models: You easily understand how these companies make money and whether their products are popular.
2. Feel Brand Value: Strong brands are important moats for companies, helping them maintain advantages in competition.

Data may be delayed, for reference only.

Focus on High-Growth Tech Leaders

Technology is profoundly changing the world. Investing in tech leaders driving industry change offers opportunities to share their rapid growth dividends. For example, NVIDIA driving the AI wave, and Tesla leading the electric vehicle revolution.

Investing in growth stocks requires attention to companies’ revenue growth and innovation ability.

Data may be delayed, for reference only.

Note: High growth usually comes with high valuations and volatility. For example, Tesla’s financial data often fluctuates. Before investing in such companies, fully recognize risks.

Essential US Stock Information Tools

Whether investing in ETFs or individual stocks, obtaining accurate, timely information is crucial. The following are some free and powerful tools to help you make wiser decisions.

Free Quote and Financial Report Websites

You need a reliable platform to view real-time prices, company financial data, and basic information.

Where Do Professional Investors Look? The US Securities and Exchange Commission’s EDGAR database is the authoritative source for first-hand financial reports. All US listed companies must submit financial reports (such as annual 10-K and quarterly 10-Q) to the SEC. Although reading original files requires some professional knowledge, they provide the most accurate and complete company information.

News Updates and Analyst Ratings

Company stock prices are heavily influenced by news events and analyst opinions.

• News Sources: Yahoo Finance is an excellent news aggregation platform, collecting articles from major financial media. Additionally, Dow Jones’ Wall Street Journal and Barron’s provide high-quality business news and market insights.
• Analyst Ratings: Professional analysts regularly release stock ratings (e.g., buy, hold, sell) and target prices. You can easily find this information on Seeking Alpha or Yahoo Finance.

How to Find Analyst Ratings on Seeking Alpha?

1. Enter a stock’s page (e.g., search Apple).
2. Under the “Ratings” tab, find “Wall Street Analyst Ratings” summary.
3. Here shows analysts’ consensus rating and average target price, highest, and lowest for the next 12-18 months.

Through these tools, you can gradually build your research framework, growing from a beginner to a more mature investor.

Congratulations! You have mastered all core knowledge to start your US stock investment journey. Review: Your success path needs just three steps:

1. Open Account: Choose a suitable overseas broker and use paper trading for risk-free practice.
2. Familiarize Rules: Master US stock trading hours, mechanisms, and tax knowledge.
3. Start Investing: Begin with risk-dispersed index ETFs or familiar famous companies.

Investing in US stocks is a powerful tool for ordinary people to fight inflation. Historical data shows long-term holding of the US market brings considerable returns.

Act Immediately, Time is Your Best Friend Hesitation is the biggest enemy of wealth growth. The earlier you start, the more significant compounding. The comparison below clearly shows the huge difference from starting ten years earlier.

Details	Investor 1	Investor 2
Starting Investment Age	25 years old	35 years old
Annual Investment Amount	$12,000	$12,000
Investment Duration	15 years	30 years
Total Invested	$180,000	$360,000
Total Value at 67*	$1,346,039	$948,098

*Assuming 6% growth rate. This example is for illustration only.

Stop waiting. Use this guide to take your first step immediately and start your wealth growth journey! ?

FAQ

How much money do I need to invest in US stocks?

The threshold for investing in US stocks is very low. You can buy at minimum one share. For example, if a stock price is $50, you only need $50 to start. Many brokers have no minimum deposit requirement, allowing flexible start based on your budget.

Is money in overseas brokers safe?

Your funds are protected by the Securities Investor Protection Corporation (SIPC). If the broker goes bankrupt, each account can receive up to $500,000 compensation protection. This protection applies to all clients, regardless of nationality, providing a solid safety net for your assets.

How long does account opening and funding take?

Online account applications usually complete review in 1-3 business days. After approval, bank wire funding generally takes 1-5 business days to arrive. The entire process can be completed in as fast as one week, allowing quick start to trading.

Do I need to file taxes in the US?

As a non-US tax resident, capital gains from buying and selling stocks are tax-free. As long as you correctly fill the W-8BEN form, no need to report taxes to the IRS. The broker automatically handles dividend tax withholding.

Is dividend tax automatically deducted when received?

Yes. When held US stocks pay dividends, the broker automatically withholds at 30% rate and deposits the after-tax amount into your account. The entire process is automatic; no additional action needed.

How to convert local currency to USD?

Before wiring, convert local currency to USD in your bank account. Most banks provide online or counter exchange services. After conversion, directly wire USD funds from that account to your broker account.

How to withdraw funds after selling stocks?

Submit withdrawal request through the broker platform. Funds will be wired back from your broker account to your own bank account. This process is opposite to funding, equally safe and convenient, but incurs certain bank fees.