Trading on the American stock exchange for Russians. The best brokers for trading on the American stock market. Training for trading shares on the stock market

There are several options for investing in foreign markets. Perhaps the most convenient of them is investing through a foreign broker.

In this article we will talk about the features of investing through foreign brokers, consider the most popular Russia foreign brokers, and compare them with each other.

Advantages of investing:

• Entering foreign exchanges
• Huge selection of investment instruments
• Funds in the accounts are insured against bankruptcy of the broker
• Small entry threshold
• Ability to work remotely
• High liquidity
• Qualified investor status is not required

Disadvantages of investing:

• Self-payment of taxes

Criteria for choosing a foreign broker

So here you go What you should pay attention to when choosing a foreign broker:

• Country of registration and account insurance
• Available exchanges and investment instruments
• Minimum deposit
• Commission amount
• Russian-language support

We will only consider most popular in our country there are foreign brokers. By country of registration they are all divided into American And European. Also, they can be divided into "pure" foreign brokers and on "subsidiaries" of Russian brokers.

Let's take a look the main differences between American brokers and European ones.

The most the main difference is the amount of insurance. IN USA brokerage accounts are insured up to $500,000 , and in Europe"Total" before 20,000 euros. Of course, provided that brokers are members of certain organizations. For USA This SIPC- Securities Investor Protection Corporation (check membership here - sipc.org/list-of-members), For Europe – depending on the country of registration. For example, for Cyprus This ICF— Investment Compensation Fund.

Brokers from USA must also consist of FINRA— The Financial Industry Regulatory Authority, an independent organization that monitors companies operating in the financial sector. You can check your membership here - finra.org.

Foreign brokers popular in Russia

Let's take a closer look at brokers. First let's go through "clean" brokers and then "daughters" Russian brokers.

Most popular in Russia is “clean” American broker. Like any American broker, it has certain advantages and disadvantages:

Advantages:

• Direct access to US exchanges
• Account insurance up to $500,000 (including up to $250,000 for available funds)
• Reliability backed by one of the strongest economies in the world

Flaws:

• Unstable relations between the US and Russia
• Higher commissions compared to Cyprus companies
• “Pattern day trading” rule - if the account has less than $25,000, you cannot make more than 3 day trades (day trade - buying and selling during one trading session) within 5 days

A typical disadvantage of working with American brokers is also the lack of Russian-language support, but it does not have this disadvantage. Russian-language support is available.

The broker has existed since 1977 and is popular not only among us, but also among the Americans themselves. The company initially positioned itself as discount broker(a broker specializing in services for the purchase/sale of securities with minimal commissions). It has reliability rating BBB+ from a rating agency S&P , and provides access to more than 100 sites V 24 countries of the world.

The minimum deposit is 10 000$ , but if you are not older 25 years, then they will make an exception for you - the entry threshold will be 3 000$ . Commissions depend on the exchanges you plan to work on. When working on American exchanges, you will have to pay $0.005 per share, but not less 1$ per trade. Some you can trade no commissions.

Present inactivity fee. If on your account less than $100,000 , then the broker will charge monthly 10$ for inactivity if there were no transactions and, accordingly, commissions. If there were transactions, but the amount of commissions was less than 10$ , then the missing amount will be charged. That is, you will have to pay at least ten. If you paid commissions for a month 10$ , then they will not charge anything additional. I think it's clear.

If on your account less than $2,000 , then the fee for inactivity increases to 20$ .

If you have it on your account less than $100,000 , and at the same time you no more 25 years , then the fee for inactivity will be 3$.

Withdrawals once a month are free. Subsequent findings this month will cost you 10$ .

Late quotes are free. Real-time quotes are paid.

In addition to insurance from SIPC, there is also additional insurance from the company Lloyd's of London.

Most popular in Russia "clean" European broker.

It has the advantages and disadvantages typical of any European broker:

Advantages:

Flaws:

• Higher commissions than US brokers (except brokers registered in Cyprus)

Registered in Denmark. Works in financial markets with 1992. Provides access to exchanges in different countries (including access to the Forex market) and has Russian-language support.

Minimum deposit – 10 000$.

To carry out transactions on American exchanges you need to pay $0.02 per share, but not less $15 per trade!

Present inactivity fee – $100 for six months(more precisely, 180 days), if no transactions were made during these six months.

Also, charges depositary commission for storage shares, exchange traded funds/commodity assets (ETF/ETC) And bonds, which is 0.12% per year , But no less 5 euros per month.

Among the advantages, it is worth noting free account opening and free deposit/withdrawal of funds (can be topped up from a bank card). Also, the advantage is additional insurance cash in the amount up to 100,000 euros Danish Guarantee Fund. The assets are insured for "standard" For Europe 20,000 euros.

Is an introducing broker V Germany. Accordingly, all operations are carried out through . Funds are insured for 500 000$ . Provides access to markets 19 countries.

Minimum deposit - 4 000$ or 4,000 euros.

The commission for transactions on American exchanges is $0.01 per share, but not less 2$ and no more 0.5% (plus exchange, clearing and commission fees for transactions in the over-the-counter market). For transactions on most European exchanges – 0.1% , but not less 4 euros.

You can withdraw money once a month without commissions, subsequent withdrawals this month will cost you 8 euros.

There is no fee for inactivity. Real-time quotes come at a cost, but you can turn them off and use delayed quotes for free.

The broker is positioned as investment social network. Israeli the startup was created in 2007 and quickly attracted the attention and investments of the world's largest venture funds, including venture fundSberbank — SBT Venture Capital , which together with the Chinese foundation Ping An invested in the site $27 million V November 2015. IN Russia progressing under the aegis of Sberbank. The broker is registered on Cyprus. Accordingly, it has advantages and disadvantages that are typical for all brokers registered on Cyprus.

Advantages:

• Account insurance up to 20,000 euros
• Low entry threshold
• Low commissions
• Simplified account opening procedure

Flaws:

• Cyprus is not the most reliable country from an economic point of view
• Direct access to the exchange is not always provided

I want to clarify about the last drawback. Cypriot companies often act as subbrokers - that is, they act as an intermediary between client And a broker with direct access to the stock exchange. This is fraught with the fact that American legislation on the protection of investor rights applies only to subbroker, but not on client. That is, in the event of bankruptcy, the broker, not the client, will receive insurance. How will this money be distributed among clients? subbroker, he will decide for himself. It is not a fact that the compensation will be enough for everyone.

Provides access to multiple exchanges. Shares can be purchased at 8 exchanges. At the same time available not all shares traded on these exchanges, but only some. For example, on NYSE currently available 517 shares.

Minimum deposit – 50$.

The company takes as a commission spread(the difference between the purchase price and sale price of the asset), which upon purchase And amounts to minimum 0.24%. In addition, if you use leverage, you will be charged every day commission for transferring a position to the next day. The amount of this commission depends on the stock and is displayed at the time of opening the transaction.

Depositing funds is free, but available commission for withdrawal of funds – from 5$ to 25$ , depending on the amount withdrawn.

Eat inactivity fee, which is 5$ per month . However, in order for the account to be declared inactive, you need do not log into your account for 12 months! This is the case if a deposit has been made. If there was no deposit, the account is considered inactive after 4 months.

The platform is very functional and technologically advanced– there are a bunch of different features, such as copying transactions of successful traders, traders' funds, own web terminal that allows you to work through a browser etc.

(formerly WhoTrades)

Let's move on to "daughters" Russian brokers. The advantage of such brokers is, first of all, that All communication with the broker takes place in Russian.

The company there are 2 "daughters" — (former WhoTrades, which is now a social network for the broker) And . They differ country of registration, and correspondingly, terms of trade.

First, let's look at a broker registered on Cyprus– company . Like eToro, WhoTrades positioned as social network for traders. It is characterized by the advantages and disadvantages of a broker registered in Cyprus (see them above in the eToro review).

Minimum deposit for independent trading - 200$/200 euros/10,000 rubles.

The commission on American exchanges is from 0.0025$ before $0.007 per share (depending on quantity), But not less 1.5$ per deal (most recently the commission was $4.75 per trade). When using leverage, you will need to pay for the use of borrowed funds at 0.019% per day.

Present inactivity fee, which is 5$/5 euros/350 rubles per month. Similar to inactivity fee in , is charged only when the amount of commissions per month was less than this value. That is, if there were transactions, but the commission on them was less than the specified amount, then the missing portion will be charged. There are also other additional fees, including commissions for calculating dividends.

When depositing funds, commissions are insignificant, determined primarily by commissions charged by banks and payment systems through which the transfer is made. As for withdrawal, it is paid. The commission depends on the withdrawal method. For example, When withdrawing to a bank account, the commission will be minimal 12$/30 euros/500 rubles. well and to a bank account "Finam" You can withdraw funds without any commission at all.

American "daughter" is a broker with direct access to American exchanges, and having other advantages and disadvantages inherent in brokers registered in USA (see above in the review). Unlike does not have Russian-language support.

Access granted only to US exchanges.

Minimum deposit – 2 500$.

The transaction fee is 2.5$ , but if your deposit becomes less 2 500$ , then the commission for the transaction will be 4$ . If the deposit becomes less 2 000$ , transactions cannot be opened until the deposit increases 2 000$ . There is another tariff that provides commissions not for transactions, but for the number of shares. However, this tariff is available only to users who have at least 25 000$ On account.

Eat inactivity fee – $15 per quarter , which is charged if during this period it was committed less 5 deals and the account is less 50 000$ .

Depositing funds is carried out only by bank transfer and is free. You will have to pay for withdrawal 60$.

There are other commissions as well.

Comparison of foreign brokers

For convenience I did summary table:

Who should open an account with?

Answer the question “Who should I open an account with?” definitely not possible. It all depends on amount, your trading strategy, your attitude towards non-trading And your level of knowledge of English.

The choice is not always easy to make. But I want to please you - You can always change your broker! And this is even done without selling assets! Although, in this case, you will still have to bear certain costs.

I hope this article will help you in choosing foreign broker, although I understand that there are still a lot of unexplained nuances - starting registration of forms and documents and ending clarification of details. As you understand, it is quite problematic to describe all this in one article.

But there is a simple solution – support service for choosing a broker, opening an account and getting started on the stock exchange (first deals). More details here – openbraccount.alphainvestor.glavinvest.e-autopay.com.

Good luck on international markets!

Good day, readers!

I think everyone will agree that the American stock market deserves its own article. It includes the largest exchanges in the world, which influence the financial “well-being” of the entire planet. The American stock exchange is a unique phenomenon: as soon as it appears, it immediately attracts money. According to statistics, half of the world's turnover comes from the USA.

American exchanges are divided into three categories: stock, commodity and derivatives. Let's consider each type separately.

The American stock market is represented by four monsters of world trade. Let's talk about them in more detail.

NYSE

Recognized world leader among stock exchanges. The exchange is the largest and most significant, one of the oldest in America. The most stringent listing requirements are the NYSE. Those who were lucky enough to be included in its quotes can consider themselves to have caught the bird of stock fortune: 50% of the world stock trading turnover is here.

In addition, the NYSE is systematically pursuing a policy of mergers and acquisitions, which only increases its influence and power.

NASDAQ

An American stock market that was created exclusively for electronic trading.

Despite its relatively young age (less than 50 years), it has managed to grow so much that it ranks second in the world in terms of capitalization after the NYSE. This once again proves the relevance of the development of automated trading systems.

The peculiarity is the lack of a physical location. Since trading is automated, exchange resources are scattered in different places, there is no need to maintain a large staff. American stock exchange participants work from home, which greatly expands the geography of stock trading.

Like the NYSE, it engages in acquisitions and expands its stock market horizons.

The exchange specializes in companies in the IT sector and other high-tech industries.

AMEX

The exchange under this name has not existed since 2008, when it was bought by the global giant NYSE and renamed NYSE Alternext USA. Independence was killed by the 2008 crisis.

AMEX, even at the beginning of its hundred-year history, could give odds to the same American NYSE in terms of popularity and volume of stock trading. This platform was created as a springboard for trade of small enterprises in the mining, light and chemical industries. The NYSE's competitor helped it a lot by tightening listing conditions, as a result of which American stock companies began to move en masse to AMEX.

AMEX became the creator of ETF funds. It all started with depositary receipts, introduced in 1993, and the introduction of exchange-traded funds into the American market.

The stock exchange to this day boasts several popular indices. And its main index, now called the NYSE Arca Index, is recognized as the most accurate financial indicator in the world.

Chicago Stock Exchange CHX

It dates back to the century before last. Recognized as the largest among commodity exchanges. It is among the leaders in the United States in terms of trading turnover.

The American stock market is unique in that it does not calculate a single index of its own and has not created a listing. Any company can trade here. Therefore, it offers a wide range of products, which has a beneficial effect on further growth and development.

Commodities and derivatives exchanges

In addition to stock exchanges, on the North American continent there are exchanges for direct trading of commodities, as well as American derivatives exchanges, which specialize in the circulation of derivative financial assets such as futures and options.

Chicago Mercantile Exchange CME

It was created as a platform for American agricultural products. It was marked by high growth rates, since its favorable location attracted sellers from all over the country.

However, by the 50s of the last century, the state of affairs had declined due to a sharp decline in demand for American agricultural products. Thanks to competent management and the introduction of innovative instruments (the International Monetary Market IMM futures market), the exchange was revived to its former glory and began to gain momentum. And the CME Globex electronic trading system, launched in 1992, officially owned by the Chicago Stock Exchange, made it possible to make trading around the clock and additionally added to the popularity of the American platform.

In the futures market, the platform plays a key role. All investors in the world rely on its quotes. In the summer of 2018, it became part of the NYSE group.

A special feature of the site is the transparency of transactions. This simplifies market analysis and at the same time cuts off the possibility of market manipulation. A special pride of the exchange is weather futures to hedge the risks of American farmers.

Chicago Board Options Exchange CBOE

This is the largest options platform in the world. It was founded not so long ago - in the seventies of the last century, but it quickly managed to become popular and attract a lot of not only American investors.

It offers both manual and automated trading. How to trade is up to the trader: the hybrid system allows everything. By the way, today manual and automatic trading are divided almost equally.

Intercontinental Commodity Exchange (ICE)

In Russian, the name of this site sounds like Intercontinental Exchange. Currently part of an old acquaintance - the global giant NYSE. It is the world's largest derivatives market platform, despite its young age (less than 20 years). Some prices, for example, for Brent oil, are determined on this exchange.

It was originally conceived as a platform for trading energy resources; for this purpose, a number of purchases and mergers were carried out. On the wave of success, it was acquired by the NYSE. The bonus from this deal was access to the leading stock market. It also provides clearing throughout the North American continent and Europe.

Few people know that it is the oldest exchange in the United States. Achieved results in the options market, especially foreign exchange. Later it repeated the fate of its closest American stock brethren, being purchased by NASDAQ.

The number of securities listed is small compared to others, but this is successfully compensated by trading in some of the popular indices (for example, XAU gold and silver).

Boston Exchange

The very idea of ​​organizing a stock exchange in this city was doomed to success, since Boston is a recognized financial center of the United States. Even the first mutual fund in America was created there. Perhaps the favorable location contributed to the fact that the unremarkable American regional exchange, which also disdained derivatives and was wary of innovations, was gaining momentum at an enviable speed.

However, it still suffered the same fate as similar regional sites. Unable to withstand the competition, it was absorbed by the monster NASDAQ, which due to this received its own clearing system.

Pacific Exchange

One of the regional platforms that has grown to international status (this happened thanks to the absorption of the same NYSE).

An interesting feature is that in the first decades of its existence there were two separate exchanges with different geographical locations: one part was located in San Francisco and worked with stocks and bonds, and the second in Los Angeles traded oil. Only in the middle of the 20th century did they finally unite into the Pacific platform.

The American Exchange is also known for being a pioneer in privatization.

Exchange comparison table

I have provided basic data on the American exchanges reviewed, including Moscow opening hours, in the table below.

How to start trading on American stock exchanges

In order for the average investor to work in the American stock market, he will need to enter into an agreement with a broker who, in the list of brokerage services, provides access to the US market. Below I will tell you how to choose a broker and trade with him.

Russian broker

A broker under Russian jurisdiction will not provide even a tenth of the instruments an investor needs on the American market. You can, of course, work with America through the St. Petersburg Stock Exchange, but it is better to choose a broker with a foreign “subsidiary”, through which the desired options will be available (for example, American shares online).

When choosing a Russian broker, pay attention to which American platforms it provides access to, and prefer the one with the maximum number of them.

Rick Keith Otkritie Finam BKS Tinkoff Promsvyaz

The largest broker and investment company in Russia. I haven’t worked with them myself, but my colleagues respond very positively.

Pros:

1. Non-buggy Transaq terminal
2. Possibility of replenishing/withdrawing money from the account without commission (through your bank)
3. A bunch of first-class services (for example, you can download quote history for free)

In fact, the only real major American broker who still works with Russians.

1. There is support in Russian
2. Good commissions
3. The deposit can be replenished with rubles (bypassing currency control)

The disadvantages include:

• Minimum deposit $10,000
• Inactivity fee

The company is an American subsidiary of Finam and was created to bring clients from the CIS to the American market.

1. The easiest way to open an account
2. Russian-language support
3. Opening an account from $200

• Quite high commissions
• Various additional payments

Forex and Binary Options Warning

Long-time readers already know about my attitude towards these two hypostases. For new ones, it’s not difficult for me to repeat myself.

Remember: not a single forex dealer or “binary options” dealer (which, by the way, cannot enter our market) has access to the stock market, especially a foreign one.

This could be a broker, bank or insurance company. As professional market participants, they have the right to make transactions on the exchange, act on your instructions and at your expense. They receive a reward for the transactions they carry out. The broker has the lowest commissions, so it is best to work through him.

In preparing this review, I talked with such Russian and American brokers as Finam JSC, Freedom Finance Investment Company LLC, Otkritie Broker JSC, BKS LLC, Just2Trade Online ltd., Interactive Brokers LLC. They all provide access to the NYSE and NASDAQ, but do so under different conditions. I systematized them for myself like this. Option 1. This is to open a brokerage account with a Russian broker. Option 2. This is to open a sub-broker account. Option 3. This is to open a direct account with a US broker.

Option 1. Opening an account with a Russian broker

Now many Russian brokers provide access to the NYSE and NASDAQ as part of a single account service. Its essence is that it allows you to make transactions with Russian and American securities from one account. This is true, except for a limitation that you should be aware of. On this account, you will be able to trade shares of only those American companies that have been listed on the St. Petersburg Stock Exchange (current list).

As part of the single account service, all your accounts on Russian and foreign markets are available in one terminal. For example, such a service is provided by Finam and Otkritie Broker.

And to trade the full list of American securities through a Russian broker, you will need the status of a qualified investor . (According to Russian laws, if an asset is not traded on an exchange, then it is available only to qualified investors.) Read more about what this status is.

Theoretically, you can obtain this status from a broker if you have: a state diploma of higher economic education, experience in working with securities or 6 million rubles. But this is theoretical. In fact, the possibility of issuing status on the basis of a diploma or experience, that is, without money, was confirmed to me only by the Finam Information Agency.

Other brokers called 6 million rubles a condition for receiving it and offered a much more affordable alternative - a sub-brokerage account (we'll talk about it below), arguing that the scheme for entering US stock exchanges is the same here. It is possible, but only this option does not allow you to open an account with a broker controlled by the Central Bank of the Russian Federation and transfer tax reporting to it.

*Subject to obtaining the status of a qualified investor based on experience or diploma.

You can check the reliability of a Russian broker, in particular, whether he has a license as a professional market participant, on the website of the Central Bank of the Russian Federation. If the broker is on the list, then it is controlled by the Central Bank. You can also check the broker in the list of trading participants on the Moscow Exchange website. Only licensed brokers are listed here.

Option 2. Opening a sub-brokerage account

This option of cooperation with a Russian broker assumes that you gain access to the NYSE and NASDAQ through its offshore company (often a subsidiary) and work with an American broker on behalf of this company. In other words, you are not given a personal brokerage account, but are allocated virtual space in an offshore brokerage account opened with an American broker. This is a standard sub-brokerage scheme used by Russian brokers.

Working under a sub-brokerage scheme, the company providing you with brokerage services is not a professional participant in the American stock market, but resells to you the services of another larger broker (prime broker) licensed and accredited on US stock exchanges.

This allows the prime broker to save on expansion costs and attract new clients, and the sub-broker does not incur costs for accreditation and development of its trading platform. For you as the end client, this means higher commissions and no personal account, since you are working through an intermediary company. This is the main difference between this option and cooperation with an American broker directly.

* I write about how an investor can prepare for filing a tax return.

Option 3. Opening a direct account with a US broker

As the name suggests, this method involves working directly with a foreign broker. To enter the NYSE and NASDAQ, you independently choose a broker, open a brokerage account with him (aka an account) and fund it from your foreign currency account opened in a Russian bank. In this case, you work with a foreign broker not through an intermediary company, as is the case with a sub-brokerage scheme, but as an end client.

As a result, you get a personal account, a transparent work scheme, lower costs and a high level of security. However, there are costs here. In particular, you may need: more time to prepare and fill out documents (how much more depends on the broker) and more patience when interacting with bank employees (how much more depends on the bank).

** My service for preparing reports for 3-NDFL allows you to simplify the process of filing a declaration. Read more about it.

Obviously, despite all the possible difficulties, interacting with a broker directly is the most reliable option in terms of investor protection. However, in order for you to compare the conditions for opening a brokerage account for each option, I have compiled them into a separate table (see below).

Comparison of options for entering US stock exchanges through a broker

Having figured out how to enter the American market, a logical question arises: which broker to choose. In such matters you can only speak for yourself. I work through Interactive Brokers and you can read my opinion about it.

However, for the sake of objectivity, I probed the Russian market for the presence of alternatives. At the time of writing this post (September, 2016), the situation for three Russian brokers is as follows (click on one of the social buttons below to open hidden content and continue reading).

As the famous character in the film “Antikiller” said, “...troubled times have come...”. Now more than ever, the principle of diversifying trading assets is of particular importance to every trader. In general, the problem for domestic traders is high market volatility, weak regulation, and imperfect legislation. There are other less important factors.

Now, during the crisis, everyone has rushed to the Western segment of the market. This might be a great way to try yourself on a completely different level. Therefore, today we will talk about how profitable it is to go to foreign financial markets, what are the features of investing in them. In particular, we will tell you about American brokers and how to start working with them.

The meaning of working to the west

It is difficult to say why many traders believe that working with foreign brokers is dangerous and unprofitable. After all, there are various reasons for such beliefs.

Let's face it:

Liquidity on foreign financial markets is significantly higher than on the same RTS. Thanks to this, the trader has the opportunity to trade intraday without significant risks

The US stock market dates back to 1870. And these are not just numbers. This is a full story, reports, graphs, ups and downs. Thanks to such a long history, the American stock market has well-established traditions, regulatory structures, etc. But for a simple trader, this only means that the American stock market is the most mature and studied. In Russia, the history of the domestic market is only 25 years old

On the US stock market, the daily trading volume is about $50 billion. And this is more than the trading volume on Russian trading platforms in a year! According to research conducted by Bank of America Merrill Lynch, the US stock market capitalization is currently 50% of the global one. And the capitalization of Russian markets does not exceed 1%. Below is a map of the world indicating capitalization in $ million.

The American stock market is not one platform, it is a collection of brokers working under one roof who provide access to the platforms and clearing operations on them. But at the same time, brokers do not carry out their own risky activities on these sites. And this is the main difference between domestic brokers and American ones. Eliminates the possibility of a conflict of interests between the trader and broker

Direct entry into the American market

Of course, it is probably impossible to count all the advantages that direct access to the American stock market provides. These are the absence of fixed spreads, transparency of the system, multidimensionality of trading information, market maturity, a huge selection of trading instruments, liquidity. In fact, the NYSE is the world's premier financial center. This is where all global financial processes begin.

And when you trade here, you understand the origins of what is happening. Accordingly, all subsequent global processes in the world economy will be easily predictable. Here you can add guaranteed deposit insurance up to $500,000, trading directly through an American terminal, or through an indirect one (ETFs and mutual funds).



In general, this is all if we speak officially. But there are also disadvantages, which include a fairly high entry threshold; not all American brokers work with traders from the CIS; not always friendly support. As for support, the root cause here is probably that American brokers primarily target institutional investors, so the “small fish” can be treated on a residual basis.

How to enter the American stock market

In order to enter the US stock market, you need to choose a broker through whom you can gain access to American exchanges. It was already said above that this can be done through Russian companies like BKS, Finam or Freedom Finance. In addition, you can enter the American market through an American-Swiss broker Interactive Brokers. Or you can enter the American market through a foreign insurance company. To do this, you will need to become a client of such a company, as well as purchase a savings insurance program.

— American and US stock markets
— 3 best American exchanges
— Structure of the American stock market
— 3 ways to enter the USA stock market
- Conclusion

American stock exchanges can be called the main financial center of the world, since the dynamics of the Dow Jones and S&P 500 indices play a decisive role on the stock exchanges of other countries.

The pillar of the United States stock market is the New York Stock Exchange, but this is quite conditional - the market is not monocentric.
An important role is also assigned to the American Stock Exchange, which is also located in New York, and the Chicago Options Exchange (its position has strengthened significantly in the last decade).

Numerous regional exchanges also have a very noticeable impact on the stock market.

The US stock market is very liquid and has a fairly serious system of investor protection. This is its attractiveness, but at the same time, American stock exchanges, the largest stock markets in the world, place fairly high demands on issuers. Listing on the NYSE is a “quality mark” of the issuer, recognized throughout the world.

— 3 best American exchanges

As already mentioned, the largest stock market is located in the United States. It is characterized by the fact that on the stock exchange standard shares do not have a par value, and when additional securities are put into circulation, their holders do not receive a profit.

For a long time, American stock exchanges have occupied a leading position in the world of finance. This financial center has several top stock exchanges including:

1) NYSE.
The largest trading platform today, which is located in New York. The world-famous exchange was founded in 1792, after the merger of the commercial organization NYSE with the ARCA exchange (Archipelago Holdings). Currently, the NYSE employs only the best brokers from all over the world. They are the ones who improve the entire organization of trading processes. It was there that a hybrid system of exchange operations was introduced, which combined the principle of auction and electronic orders. There are more than 3,500 companies that provide analysis for large-scale orders.

2) NASDAQ.
Main competitor of the NYSE. In its activity, it is an automated quotation of securities of a dealer association. NASDAQ is essential for biotech or technology companies. The big advantage is the ease of listing. Today, more than 2,700 companies are listed on this platform. The reliable, stable NASDAQ platform today provides a wide range of services (clearing, trading on the exchange).

3) AMEX.
The youngest exchange among those presented began its activity not so long ago, but it already operates more than 450 electronic types of ETFs. In fact, the exchange is owned by the NYSE. Initially, the site uses a perfect legislative framework that acts as a guarantor of the investment mechanism.

The US stock market has long been considered the most regulated, safe and filled with all the necessary exchange instruments for successful trading.

Before you start trading on the stock exchange, please read

— Structure of the American stock market

From the point of view of organized circulation of securities, the structure of the American stock market can be divided into:

1) Primary market.
This is the location of the initial offering of shares issued (i.e. issued) by the company. Some issuers deal directly with buyers, but the vast majority use the services of investment bankers. The role of investment bankers is usually performed by brokerage firms, and much less often by commercial banks.
There are two types of initial offer:

a) Private placement.
In this case, a block of shares is sold to one or two institutional investors (for example, an investment bank). A special feature of a private placement is the closed nature of the transaction. There are no financial disclosure requirements. However, a private placement is an illiquid investment because the buyer of the shares does not have the right to resell the securities for two years from the date of the transaction

b) Public offering or IPO (initial public offering).
Public placement occurs with the help of intermediaries - the same investment bankers. There may be several of them, but there is always a leader who forms a syndicate - a group of firms that agree to purchase the outstanding stake in a company that has decided to go public.

2) Secondary market.
In the USA, it is customary to divide the stock market into stock exchanges or the first and over-the-counter (OTC - over the counter market) or second market. There are also the concepts of “third market” (over-the-counter trading in securities listed on exchanges) and “fourth market” (trading directly between institutional investors).

In 2006, there were 7 stock exchanges operating in the United States, of which the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) were traditionally considered the main ones.

Other five:

a) Boston Stock Exchange;

b) Philadelphia (Philadelphia Stock Exchange) - the main center for trading currency options;

c) Chicago (Chicago Stock Exchange). It accounts for more than 51% of options trading in the United States and 91% of all index options. Currently trading options on 1,500 stocks, stock indices, currencies, Treasuries and futures contracts. Trading is carried out using the open outcry system, as well as using the Retail Automatic Execution Systems (RAES) electronic system;

d) National (National Stock Exchange, formerly known as the Cincinnati Stock Exchange);

e) NASDAQ (National Association of Securities Dealers Automated Quotations), which received stock exchange status only in January 2006.

As for trading in debt instruments, in the USA these are almost exclusively over-the-counter securities (unlike European countries). Government securities, although they are quoted on stock exchanges, are practically not traded. Corporate bonds are listed, but their trading volumes are insignificant compared to the trading volumes of the over-the-counter market.

Based on the principles of organizing exchange platforms in the United States, the trading structure on them can be:

a) Organized - trading is initiated and controlled by a special organization (exchange) that has the appropriate license and, which is important for the United States, an appropriate reputation.

b) Unorganized - exclude the presence of a participant interested in the fact of the existence of the auction as such. Due to the unsystematic nature of transactions in an unorganized market, the course of trading is rarely amenable to any regulation or systematization.

Over-the-counter trading does not imply the provision of guarantees to participants. However, historically it has turned out that it is almost impossible not to fulfill obligations, thanks to well-functioning electronic systems. However, due to less responsibility, trading on them is subject to fewer restrictions.

— 3 ways to enter the USA stock market

Since the beginning of the year, the US stock market has been steadily growing, and key stock indices are breaking historical records. The S&P 500 is up nearly 14% since January, and the Dow Jones Industrial is up more than 15%.

For a Russian investor, investing in the American market is a good way to earn income in foreign currency, says Nikita Emelyanov, asset manager at BKS Management Company. “Russians do not have many opportunities to diversify their investments,” the expert notes. According to him, in the long term, investments in the American market can bring an average of 10% per annum (including dividends).

1) Direct output.
One of the ways to enter the American market is to open a trading account with a broker by concluding an appropriate agreement. Now only a few Russian brokers are members of American exchanges. Other large brokerage companies still work through intermediaries. “A Russian broker needs an American partner who will bring operations to the market of another country,” explains Igor Klyushnev, head of the trading operations department at Freedom Finance Investment Company. When a client enters into an agreement with a broker, the agreement states that a third party will be involved in the execution of transactions.

The broker will charge a commission for transactions, which now averages about 0.04% of the transaction amount. In this case, the broker will act as a tax agent for his client (he will have to pay personal income tax of 13% of the profit, which consists of changes in stock prices and exchange rates), and the client will not have to independently report to the tax authorities on income received from transactions with securities.

Theoretically, an investor can enter the market without going through a Russian broker. “Then he will have to independently enter into an agreement with an American broker,” says Maxim Safiulin, a lawyer at the A2 law office. You will also have to report your income to the Russian tax authorities yourself.

You can go to a foreign broker with at least $10 thousand, while in the Russian market the entry threshold is much lower and starts on average from $1 thousand, notes Klyushnev. In addition, according to Andrey Kochetkov, an analyst at Otkritie Broker, American brokers charge a separate fee for maintaining an account (from $10 to $30 per month).

Another feature of the American market is a picky attitude towards the legality of funds that investors deposit into their account. “If the amount with which you come to the broker is several hundred thousand dollars or more, then the broker may require a written explanation of the origin of the money and provide documents that confirm that the person received it legally and paid all the necessary taxes on it,” explains Andrey Kochetkov.

2) Russian American Stock Exchange.
Another option is to buy US stocks through the St. Petersburg Stock Exchange. The list of US stocks traded on this exchange currently includes 527 securities. Including the shares of the most expensive companies in the world - Apple, Alphabet (formerly Google), Microsoft, Berkshire Hathaway, Amazon, Exxon Mobil, Facebook, Johnson & Johnson, JPMorgan Chase, General Electric, etc. Trading participants (brokers) on the stock market of the exchange are 48 companies and banks.

According to Pavel Pakhomov, the demand for securities from investors on the St. Petersburg Exchange (so far the only platform in the country where foreign shares are traded) is growing. “If a year ago the turnover at auction was $2-3 million, now it’s already more than $20 million a day,” he says. For comparison: the average daily turnover on the American exchanges NYSE and NASDAQ is tens of billions of dollars.

The commission for an investor who trades through this exchange averages 0.05%. As Pavel Pakhomov explains, this percentage consists of the broker's commission (about 0.04%) and the exchange commission (0.01%).

Igor Klyushnev also notes that on the St. Petersburg Exchange it is possible to conclude transactions outside the main trading session on American exchanges (currently trading in the USA takes place at 16:30–23:00 Moscow time) - from 10:00 Moscow time.

3) To the market through mutual funds.
A passive investor can enter the American market through mutual funds whose portfolio consists of foreign securities. According to Investfunds.ru, about two dozen open equity funds now provide access to the foreign market. Among them there are mutual funds focused directly on the American market (for example, Raiffeisen - USA, Otkritie - USA, Sberbank - America, BCS Funds USA).

Such funds especially note that investments in their mutual funds provide the opportunity for currency diversification of personal savings to protect them from ruble devaluation, and investing in the American stock market is an investment in a developed economy. At the same time, the funds operate in Russian jurisdiction and mutual funds are Russian securities.

Maxim Safiulin from A2 warns that the shareholder does not directly participate in any transactions with securities - the management company does this for him. At the same time, funds cannot change the proportion of investments in assets of different categories stated in advance to the client.

When purchasing shares, the investor pays a so-called premium (no more than 1.5% of the purchase amount), and when selling - a discount (no more than 3% of the value of the shares).

- Conclusion

The American securities market has been showing strong growth since the beginning of the year, which promises considerable profits in the future. However, entering the US market is not so easy. But there are more than enough opportunities for this, several of them are described in this article, others you can find yourself. The Internet is full of information on this topic.

In other words, if you have significant capital, then you should consider investing in American stocks. According to experts, investments from them can bring an average of 10% per annum in the future.

The material was prepared by Dilyara specifically for the site