Why Should You Consider Investing In US Stocks From Australia?

When it comes to investing, the USA remains a leading country for companies to list and drive new innovative products and technologies on the share market. Along with producing some of the best returns for shareholders, they are not only the largest and most liquid market in the world, but they have also outperformed the ASX200 over the last 15 months. The US markets also offers one of the best diversification avenues from international exposure. Traders investing in US stocks from Australia and finding the next Microsoft, Apple or Tesla, there’s never been a better time to invest.

Some Risks Involved While Investing In US Stocks

The major risk is currency fluctuations between the Australian and US dollar. This has the potential for global earnings to be much less rewarding and impact the overall return of an investor’s portfolio. That’s why investors buy Australian listed ETFs with US exposure that include currency adjustments. There are also rules and regulations in other countries that are distinct from those in Australia which may impact on the length of processing and settlement time. Then there’s taxation implications and other costs that may differ when investing in US stocks in Australia. Overseas income from investments is subject to taxation in Australia however a tax offset may be available if tax has been paid in that overseas country. Incurring additional costs such as foreign levies or transaction fees is another risk. Even simple tax benefits Australian investors are used to i.e., like franking credits may not be available when investing in foreign shares.

Final Thoughts

When investing in US stocks from Australia, there is no time like the present. It only takes a $1000 to get started and investors have access to full-service broker or discount online brokers that can open your account in a day. Although, if your new to the game best to talk with a full-service broker as they will be able to educate you on the most important information straight away. Seek help from a team of experts at MF & Co. Asset Management. They work with a full spectrum of clients and specialize in advising and trading in Australian and US Equities & Options. Browse their official website and learn more about their services, or simply get in contact with them via their “contact page” and ask about their investment philosophy and track record.