The Bitcoin spot ETF in the United States officially began trading on the 11th. For Taiwanese investors who are interested in participating, how can they make a purchase? This article explains the four-step process.
Table of Contents:
How to invest in US stocks/ETFs? Tutorial
1. Choose a suitable broker
2. Register a securities account
3. Transfer funds
4. Place an order
Several details to pay attention to when investing in US stocks/ETFs:
How can Taiwanese investors participate in the Bitcoin spot ETF?
The Bitcoin spot ETF in the United States officially opened for trading this week, and on the first day, the trading volume exceeded 4.6 billion US dollars, with over 700,000 transactions. All investors are closely watching whether the ETF can bring a huge influx of funds to Bitcoin in the future.
Interestingly, the community has recently begun discussing how Taiwanese people can buy the Bitcoin spot ETF listed on US exchanges. The following is a simple process for you to follow.
1. Choose a suitable broker
To start investing in US stocks, you first need to choose a suitable broker. If you choose to open a securities account in Taiwan, major brokers such as Cathay, Fubon, and Yuanta…etc. all provide relevant services, but you need to activate the delegated trading function. Another option is to directly open a personal account with overseas brokers such as Firstrade, IB Interactive Brokers, or Jiaxin Securities. The main factors that ordinary users consider include transaction fees and convenience. Generally, the fees for delegated trading are higher, but they eliminate the cost of remitting funds overseas. On the other hand, the transaction fees of overseas brokers are usually lower, but you need to consider the fund transfer fees and bank wire transfer fees when transferring funds abroad. Both options have their advantages and disadvantages, and readers can make choices based on their personal investment needs and preferences.
Once the broker is selected, the next step is to register a securities account. This process requires providing valid identification documents and filling in some basic financial information. For overseas brokers, this may also include providing tax-related information and completing additional international compliance documents.
Once the account is opened, you need to transfer funds to the account. For domestic brokers, this is usually a simple local bank transfer process. However, for overseas brokers, international remittance is required, so you need to pay attention to bank wire transfer fees.
Once everything is ready, you can start trading US stocks/ETFs on the selected broker’s platform.
Tax issues: According to Taiwanese law, profits from overseas investments need to be reported for taxation.
Currency conversion and exchange rate risk: Investing in the US stock market usually requires converting funds into US dollars, which may involve exchange rate risks.
Market research: Understanding the dynamics and regulations of the US market is important, including trends in different industries and market regulatory laws. At the same time, understanding and managing investment risks are also crucial.
US stock trading hours: Normal trading hours are Eastern Time: 9:30 am to 4:00 pm. Usually, it is from 9:30 pm to 4:00 am Taiwan time.
How to repatriate funds to Taiwan after selling: After selling, the funds are usually deposited into your US securities account. You can then initiate an international remittance from your US securities account to transfer the funds to your bank account in Taiwan.
It is worth noting that the Financial Supervisory Commission (FSC) indicated that although Taiwanese investors can open an account with US brokers to invest in the US Bitcoin spot ETF, the use of delegated trading services through domestic brokers is currently not allowed. The FSC is studying whether to allow it and is expected to make a final decision soon.
On the other hand, regarding the possibility of issuing Bitcoin ETFs in Taiwan, Huang Hou-ming, Deputy Director-General of the FSC’s Securities and Futures Bureau, pointed out on the 11th that according to the Investment Trust and Consulting Act, Bitcoin does not fall under the category of approved “securities,” so asset management companies are currently unable to issue ETFs tracking Bitcoin. Regarding whether domestic asset management companies can issue funds tracking US Bitcoin ETFs, Huang stated that it is not possible for single-link funds. As for portfolio funds (Fund of Fund), although there are no explicit regulations currently, they also need to be submitted for review.
Regarding whether to amend the Investment Trust and Consulting Act in the future to open up Bitcoin ETFs, Huang emphasized that further research and collection of international data are needed for evaluation. Currently, only the US and Hong Kong have approved the issuance of Bitcoin ETFs.
Huang finally emphasized that whether it is domestic or foreign funds, if they want to be issued and sold in Taiwan, they must obtain approval or file with the FSC.