We’ve heard the saying “invest while you are young”. But if you live in the Caribbean, you may think that your options are limited. Quite the opposite.

Whether you are in your early 20s or late 40’s living in Dominica or the Caribbean, investing in the US Stock Market is an option.

Before you begin investing, it is wise to have an emergency fund and/or insurance coverage. Financial advisors also recommend that you only invest money you can afford to lose.

Here’s what you need to get started on the US stock market.

A US Discount Online Broker

A broker is a person or firm who arranges transactions between a buyer and a seller when the deal is executed.

To sign up to these accounts, you will need to go through a vigorous process to verify your identity as a non-US national. Items such as a government issued ID, proof of employment, source of funds, proof of address and a W-8 Ben Form are some of the documents needed. The W-8 Ben Form is an important document that must be filed by any non-US individual or business to confirm their residence for tax purposes in order to qualify for a lower rate of tax withholding.

Some online broker accounts which accept international investors include:

• Interactive Broker; biggest US discount broker and globally regulated
• Trade Station
• First Trade Securities
• Zacks Trade
• Saxo Bank
• CMC Markets
• Charles Schwab International
• TD Ameritrade

Use my IBKR referral link to get started on Interactive Brokers. If you need help, send me a message through the Contact tab.

What about Robinhood App?

Robinhood is a commission free trading app However, it is only available to US citizens or permanent residents who have a legal address in any of the 50 US states including Puerto Rico.

In addition to these online brokers, there may be local brokers in your country who can facilitate these transactions on your behalf. Always take note of the fees listed.

Pay wire transfer fees

So, you’ve signed up and you are ready to invest. But pump the brakes just one minute. If you do not have a US bank account or a local broker, you have to account for wire transfer fees in addition to your investment amounts.

Shop around for attractive wire transfer fees in your market and create a strategy to fund your account without breaking the bank.

Tip: Before investing, identify your risk tolerance and time horizon. Contact Finance Focus for more information.

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