The top US stocks to watch in Singapore
Trading US stocks is popular around the world. Explore the reasons why, the advantages and disadvantages of trading US stocks in Singapore and discover five of the best US stocks to watch now.
Why trade US stocks?
You might want to consider trading US stocks for a few reasons. First, you can access the two largest stock exchanges in the world by market cap – the New York Stock Exchange (NYSE) and the Nasdaq.
Second, there are regular reports released in the US that greatly add to the exchanges’ (and their constituent companies’) volatility. These include GDP figures (released monthly), employment figures (released weekly and monthly), interest rate decisions (released eight times per year) and more.
Finally, there is a vast variety of small and large cap companies on which you can trade.
Pros and cons of trading US stocks in Singapore
Advantages |
Disadvantages |
There’s a multitude of companies you can trade; from small to large cap |
It can be confusing deciding which US stocks to trade, as there are so many |
Regularly released reports and announcements affect market conditions, leading to volatility and more opportunity |
You’ll pay a currency conversion fee for trading in US dollars |
Many economists focus on the US stock market, so there are almost endless predictions on how companies might perform |
Because there’s so much information out there from experts, you can become over-reliant on economists’ predictions, which are not always accurate |
Because so many people trade US stocks globally, there’s a great deal of liquidity |
Market insights may be lacking – because you’re not in the US, you might not have intimate knowledge of some of the companies you’re trading |
Trading the US stock market from Singapore has many advantages, but there are downsides as well. You can find almost limitless stocks to trade but knowing which ones to take a position on can be confusing.
Many economists focus solely on the US market, leading to a plethora of predictions on how exchanges and companies might perform. This can be good for your fundamental analysis; however, it can also mislead you, as economists are not always right.
You’ll pay a currency conversion fee, as you’re trading in US dollars. We’re transparent about the fees you’ll pay when you trade with us.
We enable you to access over 70 key US stocks with extended hours, which means you get to trade news and announcements before and after normal trading hours. This is an important consideration when you’re looking for the best broker for US stocks in Singapore.
Top US stocks to watch
For this list, we’ve looked at the top US companies by market cap. We’ve ordered them from the largest first. Note that the market caps of these companies are correct at the time of writing.
1. Apple
Apple tops the list with a market cap of $3,371 trillion.1 It has had a fairly volatile journey over the past couple of years, first with investors becoming wary of the iPhone-focused business direction, then with the renewed faith in its latest step-change into AI. This has made for favourable trading conditions.
2. Microsoft
Microsoft currently has a market cap of $3,099 trillion.2 It faces intense competition from other software companies, and all updates made to its services are microscopically studied. This, plus its partnership with OpenAI, tends to shift the share price, creating promising trading conditions.
3. NVIDIA
NVIDIA’s market cap is $2,905 trillion,3 marking it as the third-largest US company. It has enjoyed a prolonged rise since 2015, aside from a bump in the road in 2018. This makes it one of the best US stocks to trade for those looking to open a medium- or long-term position. However, trade concerns between the US and China, which tends to focus largely on semiconductor chips, has placed NVIDIA in a precarious position, opening up the chance for volatility.
4. Alphabet
With a market cap of $1,983 trillion,4 Alphabet is a giant in the US stock market. As a popular stock for hedge funds, it has deep liquidity – a good sign for traders. However, as it’s an already established stock that’s weathered the ups and downs of the market over many years, it tends to be less volatile. So, longer-term trades on Alphabet could be more favourable.
5. Amazon Inc
A household name around the world, Amazon has a market cap of $1,785 trillion.5 With Amazon Web Services (AWS) in a growth cycle, it’s bound to power a great deal of the company’s future business. Coupled with the company’s multibillion venture into generative AI, it’s well-positioned to grow, which could be an important consideration if you’re looking to trade Amazon stocks in Singapore.
How to identify opportunities in US stocks in today's market
Identifying opportunities in the US stock market can be done in a number of ways. You could use technical analysis with tools, indicators and past market action to identify where you might find a fruitful trade. You can also use fundamental analysis, relying on breaking news and regular announcements, like earnings results, to discover your next opportunity.
Trend analysis is a vital part of any trader’s resources. It’s best to use a mix of technical and fundamental analysis to try to predict what direction the market will move in; one type of analysis might confirm the other’s forecast, making a successful trade more likely (but never a guarantee).
Essential strategies for trading US stocks
There are many ways to trade US stocks; we’ll introduce two popular trading strategies today. The first strategy is day trading, a popular choice for many traders as they don’t pay overnight funding fees and there’s no overnight risk as they tend to close their trades by market close each day. It’s a short-term strategy that can be employed by anyone, from individual retail traders to large banks.
The second trading strategy is position trading. This is a months-to-years trading plan, where traders can hold their positions for decades. It’s a long-term strategy that is a lot less active than day trading and can offer higher potential gains as share price movements tend to be larger. However, this is never guaranteed.
How to trade US stocks with us
- Create a live or demo account or log in
- Find an opportunity among one of our 70+ US stocks
- Click ‘buy’ to go long or ‘sell’ to short
- Set your position size
- Take steps to manage your risk
- Open and monitor your position
Trading US stocks summed up
- Using CFDs, you can trade over 70 US stocks in Singapore with us
- When trading the US stock market, it’s important to remember that there are upsides and downsides, like a multitude of stocks to choose from, but you’ll need to pay a currency conversion fee
- Five of the best US stocks to watch right now, based on their market caps, are Apple, Microsoft, NVIDIA, Alphabet and Amazon
1 Companies Market Cap, 2024
2 Companies Market Cap, 2024
3 Companies Market Cap, 2024
4 Companies Market Cap, 2024
5 Companies Market Cap, 2024
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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