## Quick Start for Beginners to Buy Stocks in the US: A Comparative Analysis of Three Investment Paths

Want to strike it rich in the US stock market but don't know where to start? Actually, the **US stock** market isn't complicated; the key is to choose the right approach. Many people think investing is gambling, but in reality, buying company stocks is akin to becoming a shareholder—you receive dividends based on the company's actual performance, not just luck.

## Basic Logic of US Stock Trading

First, understand the **US stock** game rules. The United States has three major exchanges: the New York Stock Exchange (NYSE), NASDAQ, and the American Stock Exchange (AMEX). Trading hours are divided into three phases: pre-market (Daylight Saving Time 4:00-9:30, Standard Time 5:00-10:30), regular trading (Daylight Saving Time 9:30-16:00, Standard Time 10:30-17:00), and after-hours (Daylight Saving Time 16:00-20:00, Standard Time 17:00-21:00).

The most critical feature is the T+0 trading system—buy today, sell today; settlement occurs T+2. There are no lot size restrictions; trading can be done with as little as 1 share, which is a huge advantage for small investors. Want to buy Tesla? Just over $260 per share is enough. Plus, transaction fees are extremely low—besides broker commissions (0.5%-1% for electronic trading, 1% for manual trading), there are basically no other costs.

## Why Choose to Buy Stocks in the US?

Compared to other markets, the US stock market has obvious advantages. Taiwan's minimum trading unit is 1 lot (1000 shares), Hong Kong's typical lot size is 100-1000 shares, A-shares are 100 shares per lot, and Malaysian stocks have a minimum of 100 shares. In other words, buying the same stock in the US costs the least.

Second, the variety of options is extensive. There are over 8,000 stocks listed in the US, including non-US companies like Alibaba, JD.com, and TSMC. NASDAQ hosts global tech giants like Apple, Amazon, Google, and Tesla, with many innovative and growth-oriented companies clustered together, meaning more investment opportunities.

Additionally, the average daily trading volume exceeds 10 billion shares, providing excellent liquidity, and individual stocks are less susceptible to manipulation. As the world's largest economy, US companies are stable, and the market is highly active.

## Account Types You Need to Know Before Opening an Account

There are mainly two types of US stock accounts. **Cash accounts** are the simplest—about $500 is enough to open one, allowing trading of stocks and ETFs, but short selling is not permitted. They use T+3 settlement and T+0 clearing. **Margin accounts** involve borrowing money from brokers, with a minimum of $2,000, allowing both long and short positions, leveraging to amplify gains, especially suitable for short-term traders.

A third option is **CFD (Contract for Difference)**, which has the lowest trading threshold—starting from 0.01 lots, with margin requirements of only $50-100. This method is very flexible, allowing both long and short positions with leverage, but it carries the highest risk and requires a strong heart.

## How to Choose Among the Three US Stock Investment Paths

### Path 1: Direct Purchase of Real US Stocks

This is the most straightforward method—buying actual shares of listed companies. Advantages include compliance, transparency, generous dividends, and attractive returns. US stocks operate on a T+0 system, offering high liquidity and easy opportunity capture. The downside is the time zone difference (short-term monitoring can be tiring), and the account opening process is relatively complex.

Taiwanese investors usually trade through sub-brokerage arrangements, with fees around 1%. Malaysian investors can choose platforms like Malacca Securities, Moomoo, Rakuten Trade, with fees ranging from $3.8 to $25. Mainland Chinese users can use platforms like Futu NiuNiu or WeBull. Note that while US stocks are exempt from capital gains tax, dividends are still subject to a 30% withholding tax.

### Path 2: Investing in US Stock ETFs

ETFs (Exchange-Traded Funds) allow you to invest in a basket of stocks at once. There are ETFs for tech stocks, healthcare, bonds, and more, with much lower risk than individual stocks. Management fees for US ETFs are surprisingly cheap—for example, VOO charges only 0.04%, which is one-tenth of Taiwanese ETFs.

The advantages are risk diversification, low costs, and ease—no need to monitor daily. The downside is that different ETFs within the same sector may have significant differences, requiring careful judgment. Also, during the first 30 minutes after market open, price gap risks are higher.

### Path 3: Trading CFDs

This is a leveraged trading method for **US stocks**. Using margin, you can trade with leverage, both long and short, with the T+0 mechanism especially suitable for short-term trading. One account can trade US stocks, forex, gold, indices, cryptocurrencies, and more.

But beware of risks. Leverage amplifies losses, so you must fully assess your risk tolerance. Think through the worst-case scenario before establishing a position.

## Three Steps to Get Started with US Stock Investment

**Step 1: Register an account**. Fill in basic information, submit your application, and choose the account type that suits you.

**Step 2: Deposit funds**. Most platforms support multiple deposit methods, with quick processing.

**Step 3: Trade**. Identify opportunities, place orders, monitor positions.

## Must-Consider US Stock Picks for Beginners

Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Johnson & Johnson (JNJ), Intel (INTC) are solid choices. For growth potential, consider Amazon (AMZN), Alibaba (BABA). Conservative investors might prefer consumer giants like Procter & Gamble (PG), Walmart (WMT). Starbucks (SBUX) combines growth and defensive qualities.

A reminder: The above are for reference only. Final choices should be based on your financial situation and trading strategy.

## Core Points to Master for US Stock Investment

Trading in US stocks requires long-term accumulation and repeated practice. Having theory alone isn't enough; you must constantly refine your strategy through actual trading. Warren Buffett's success lies in experiencing enough market storms and witnessing various extreme situations, enabling him to handle any volatility calmly.

Beginners should not seek quick profits when entering US stock investing. Solidify your knowledge, operate cautiously, and regularly review and analyze your trades. Only then can you stand firm in the investment market. Remember: Knowledge + Discipline + Patience are the true secrets to making money.