How To Trade and Invest in US Stocks For Free From Malaysia
Guide on how to fund, trade, or invest in US stocks in Malaysia with ETRADE without commission
Funding your US broker account has always been the hardest part of all. In this article, I am going to show you how you can buy and sell US stocks with ZERO trading fees using ETRADE. If you are seeking an opportunity to diversify your investment in the US stock market, you have come to the right place.
If you already have an existing Interactive Broker account, I wrote a full guide about how to fund your IBKR account too.
Disclaimer
The author of this blog post assumes no responsibility or liability for any errors or omissions in the content of this site. This information container in this site is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness.
Disclosure
Bear in mind that some of the links in this post are referral links and if you go through them and sign up, I will earn a referral reward. Keep in mind that I link these companies and their products because of their quality and not because of the rewards I receive from your usage. The decision is yours, and whether or not you decide to use it is completely up to you.
Goal
- How to invest or trade US stocks with ZERO trading commissions using ETRADE if you are not a US citizen
- Funding your US broker account has always been the hardest part, so how to start funding your E*TRADE brokerage account?
In this blog, I will be using Malaysia Ringgit (MYR) as an example, if you are not from Malaysia, just change everything to your local currency.
Money Flow
Your local currency (MYR) → InstaReM (USD) → E*TRADE (USD)
Services
Part 1: Creating An Account with E*TRADE
To be able to trade in the U.S. stock market, you will need a US broker account. Just earlier this year (2020), E*TRADE allowed account opening to foreign investors and the best part of it is that we (non-US residents) get to enjoy a $0 commission trading fee too! Sounds amazing, where do I start?
📒 Create a broker account
As of the day of writing this post, clients who do not have an E*TRADE account established yet can send the required documents in three ways. Let’s start with the application form first!
🧾 Application Forms
To open the account, you need to download, fill, and submit the following documents:
- E*TRADE Complete Investment Account Application from E*TRADE’s website.
- W-8BEN Certificate of Foreign Status tax form
- A copy of your valid passport
- A copy of your bank statement (to prove your permanent address)
Note:
Please hand sign these documents if required. My first submission got rejected because I e-signed it.
All the forms are linked from Forms & Application.
Once you have all the documents ready, submit them using one of the following methods. Clients who do not have an E*TRADE account established yet can send their documentation in one of the following three ways.
📠 Method 1: Fax
The first option is to send E*TRADE a fax.
Fax number is 1–866–650–0003.
International fax number is 1–678–624–6950.
You should be using the international fax number. If you are not certain about what to do, I would highly recommend you engage with their live chat support.
✉️ Method 2: Mail
The second option is to physically mail documents to them. Provided below are E*TRADE mailing addresses:
Regular Mail:
E*TRADE Securities LLC
PO Box 484
Jersey City, NJ 07303–0484Overnight Mail:
E*TRADE Securities LLC
Harborside 2
200 Hudson Street, Suite 501
Jersey City, NJ 07311
📧 Method 3: Upload Documents Online
Use the “Upload Document” feature found by clicking the “Customer Service” link found on the top-right corner of the page to submit your application.
This option is probably for those people who had an account (probably a Stock Plan account) with their company at E*TRADE where the employees can sign up for an Employee Stock Purchasing Plan.
Sadly, this feature is still NOT applicable to those who do not have an existing E*TRADE account. 😿
However, once you have an account opened with E*TRADE, all your future form submissions can be done online.
🙋 FAQ (Can skip to Part 2)
Can I send my application forms via email?
No. E*TRADE does not accept email form submissions.
I already have an existing Stock Plan account with E*TRADE, can you just start trading other stocks?
No. You will need to open an Individual Broker Account with E*TRADE. You are however able to submit your application using their ‘Upload Document’ feature after logging in instead of mail or fax.
Which option should I pick for Uninvested Cash Program?
Cash Balance Program.
Why can’t I withdraw my money via the Wire Transfer option? Fees?
The only wire feature is not available for accounts opened less than 60 days. If all else fails, talk to their support, they will help you with your wire transfers. Note that E*TRADE does impose a $25 fee per outgoing wire (domestic or international). Incoming transactions are free of charge.
Can you maybe help me upload my application form…?
I would love to, but no, E*TRADE simply does not allow that. I asked.
Does E*TRADE offer any referral promotion?
No. E*TRADE does not offer any referral promotions at the time of writing this. 😔
How long does it take for E*TRADE to process my application?
Usually 7 to 10 business days. It might even take longer to open a foreign account since it is subjected to review and approval.
Can I trade options via E*TRADE?
Yes. Make sure to select that option in your application form if you want to trade options, else you can always resubmit the application for this later on once you get your account.
I am a Singaporean, can I open an account with E*TRADE too?
No 😓. Currently, E*TRADE only allows selected international clients to open an account with them. As I am writing this, E*TRADE has discontinued retail brokerage services in Singapore. So they will not be able to open an account for you even though you send over the documents.
Note:
If you ever run into any questions or trouble registering an account with E*TRADE, the bottom line here is to always, always contact their support via Live Chat etc. They will always provide you with the latest and most updated answers.
I would highly recommend you to contact them via live chat in regards to opening an account with E*TRADE. That way you can verify if the information I have provided is correct and valid.
Part 2: Funding your account
In this section, I am going to show you two methods of funding your E*TRADE account without using any foreign telegraphic transfer, Western Union, PayPal, or anything conventional, though you can fund it however you want, really.
📝 Obtaining your Bank Wire Instructions
Assuming you already have your E*TRADE account ready and tax verified, you may look for ETRADE’s bank wire instructions here
Besides the above, take note of your 8-digit E*TRADE account number too (You can get this under the Complete View tab after logging in).
Great! Now, that you’ve obtained your bank wire instructions, let’s proceed to fund our account.💸
❤️ InstaReM
If you have followed my previous post on how to fund my Interactive Broker account, I have been using InstaReM (you can read more about InstaReM in that blog post too), and it has been wonderful thus far and their customer support has been really helpful.
What do I need to create an account with InstaReM?
- Email ID
- Mobile number
- Identity & address proof documents
- Selfie
- Log in to your InstaReM account → under They Receive, insert the amount that you intend to transfer → Initiate Transfer
2. Fill up the Recipient form accordingly based on Bank Wire Instructions that you have obtained from Part 1 above → Save and Continue
3. Choose your payment method and bank of choice.
🌟 I would highly recommend you to use FPX Payment. If so, you can proceed to make FPX payment and skip Part 3
Bank Transfer Method
4. Review your payment details → I Authorize and Confirm → Mobile Verification
5. Make the payment accordingly based on the page YOUR redirected page (The image below is just an example).
Note: You are advised to transfer funds to InstaReM within 24 hours. Your transfer will be auto-cancelled if they do not receive funds for the same within 36 hours of initiating the transaction.
Sweet! 🍬 We are almost at the end!😫
Part 3: Transfer your money to InstaReM
OPTIONAL: Only read this if you have chosen Bank Transfer option at Part 2
- Log in to your local bank account. I am using Maybank in this example.
- Transfer Funds → Transfer to Other Accounts → New Transfer → OCBCBank (Malaysia) Berhad
- Fill up the details based on Part 2 above
- Your E*TRADE account should be funded in about 2 business days.
- InstaReM will send you an update on the transaction status via email.
- To view your transaction status with InstaReM, check out the History tab.
- E*TRADE will also notify you once they receive the money from InstaReM via both email & mobile (if you have their phone app installed)
And… we’re done! 🙌
FAQ 2.0❓
E*TRADE vs Interactive Broker, which to use?
I would say go for Interactive Broker if you want to access different stock markets all around the globe, else E*TRADE. Also, if you’re a day trader, IBKR offers a pretty extensive desktop trading platform, you might want to check that out.
I do not want to use InstaReM to fund my E*TRADE account, what other choices do I have?
You can use Sunway Money as an alternative to InstaReM to fund your E*TRADE account. They are relatively new to the scene and I have proven that they work. I usually just switch between Sunway Money and InstaReM depending on who provides the better exchange rate and fees overall at the time.
Wrap-up
- Do your own research. Don’t believe everything you read.
- If all else fails with E*TRADE, always look for their support (Live Chat, etc.)
- You should really try with the smallest amount possible first on your first transfer, just to make sure everything works from your end
- If you see misinformation here, do let me know. As usual, I will try to keep this post updated
- Read more about InstaReM & Interactive Broker here
- Referral link → InstaReM 🙏
