Do you ever wonder how you can invest in the US stock market? Getting access to NYSE- or NASDAQ-listed stocks as well as thousands of index funds, exchange-traded funds, and actively managed mutual funds could open up opportunities for your investment portfolio.

So how do you get started? Try online stock brokerages that accept overseas investors. The process, surprisingly, is not that complicated. And it doesn’t cost that much to open an account. Follow these steps to get started:

Step 1: Select a broker
Choose an international online brokerage that accepts overseas accounts. Look for US-based brokers that do. Some of the big names such as Charles Schwab, E*Trade, and TD Ameritrade welcome non-US citizens to trade in the US stock market.

But don’t limit yourself to name brands. Consider newer and smaller players such as First Trade, OptionsXpress, and Trading Direct, which offer lower minimums, commissions, and other charges. They also happen to rank well in surveys.

Step 2: Open an account
Before you could even open an account, you have to mail a number of documents. Typically, you have to show some form of identification, usually photocopies of your passport, a bank statement, and a utility bill. You download required forms (these vary per broker) such as an online service or subscription agreement, signature form, and the W-8BEN form, also known as Certificate of Foreign Status of Beneficial Owner for United States Withholding (for non-US citizens to claim an exemption from withholding, or a reduced tax withholding rate, on earnings from investments).

Step 3: Deposit funds
There are various ways to fund your account. You can send a dollar denominated check payable to your broker. Or you can do an international wire transfer through your bank (the bigger banks offer this service). Withdrawing funds also works the same way, i.e. by check or wire transfer.

Step 4: Invest
Once your account is approved, you can start investing!

(This article is from MoneySense, the country’s first and only personal finance magazine. Visit www.moneysense.com.ph for more.)