How to Buy US Shares in Australia for Beginners [2025 Guide]

Key takeaways

• Investing in US stocks offers diversification, access to global tech giants, and exposure to the world’s largest and most liquid equity market.

• Australians can invest in US shares through international trading platforms like moomoo, which support easy access to major US stock exchanges.

• Getting started is simple — just follow 7 steps: choose an online broker, open a trading account, complete a W-8BEN form, fund your account, research stocks, place your trade, and monitor your portfolio.

• Key considerations include U.S. market trading hours, currency exchange and fluctuations, tax implications for Australian investors, and a solid understanding of major U.S. stock indexes.

Investing in stocks remains one of the most effective ways to build long-term wealth. Thanks to advancements in technology and growing competition among trading platforms, it's now more affordable and accessible than ever to buy international shares—including those listed in the U.S.

The U.S. stock market is known for being both fast-moving and full of opportunity. It’s home to many of the world’s largest companies, as well as innovative up-and-comers with strong growth potential, making it an attractive destination for investors around the globe.

This guide covers everything you need to know about buying US stocks from Australia. Whether you're new to investing or looking to refine your strategy, we'll guide you through the steps to invest in US shares so you can start your investing journey with confidence.

Why would you buy US shares?

Buying US shares is attractive for several key reasons, especially for Australian investors looking to expand their investment horizons.

• Strong recent performance: The U.S. stock market, represented by major indexes such as the S&P 500, Dow Jones, and Nasdaq, has shown strong performance in recent years. A returns comparison between U.S. and Australian markets highlights this strength. In 2024, the ASX 200 delivered a solid return of 7.49%, reflecting the resilience of the Australian market. Meanwhile, U.S. indexes posted higher gains: the Dow Jones rose by 12.88%, the S&P 500 increased by 23.31%, and the Nasdaq jumped 28.64% (Source from moomoo). For investors seeking long-term capital growth, the U.S. market may offer broader exposure to high-growth sectors and global innovation.

• Home to global leaders: Many of the world’s most influential and innovative companies are listed in the US, especially in technology, finance, healthcare, and consumer goods sectors. These firms often lead global innovation and economic growth, offering investors exposure to cutting-edge industries and market leaders.

• International diversification: Including US shares in your portfolio helps spread risk across different economies and markets. It provides exposure to global economic trends and reduces dependence on any single country’s market, enhancing portfolio resilience.

• Market opportunities amid volatility: Despite some tariff-related uncertainties and market swings in the first half of 2025, the US market has shown resilience and opportunities for long-term growth, especially in growth and small-cap stocks that remain attractively valued.

How to buy US stocks in Australia?

1. Choose an online broker

2. Open a share trading account

3. Complete a W-8BEN form

4. Fund your account

5. Research US stocks

6. Buy your preferred US shares

7. Monitor your stock portfolio

Step 1: Choose an online broker

Selecting the right online broker is the crucial first step to buying US stocks in Australia. To help you quickly find a trading platform that meets your needs, we have outlined the following key factors.

• Market access: Ensure the broker enables direct trading on US stock exchanges (such as NYSE and NASDAQ) from Australia. Moomoo offers one-stop access to global stock markets, all in one app.

• Fees and commissions: Compare brokerage fees per US trade, currency conversion rates, and any ongoing account or inactivity fees. Moomoo offers highly competitive trading fees, with U.S. stock and ETF trading starting at just US$0.99 per order. Other pass-through fees and FX costs still apply.

• Regulation and security: Ensure the broker you choose holds an Australian Financial Services Licence (AFSL) and is regulated by the Australian Securities and Investments Commission (ASIC). Moomoo Australia is authorised under AFSL No. 224663 and also operates under regulatory oversight in other jurisdictions.

Step 2: Choose the correct account type and open a share trading account

After selecting your preferred broker, the next step is to choose the correct account type and open a share trading account.

Australian investors can open various types of accounts to trade US stocks, depending on their personal or organizational needs. The most common account types include individual accounts, company accounts, trust accounts, and self-managed superannuation fund (SMSF) accounts.

• Individual accounts: This is the most common and straightforward type of investment account, ideal for individual investors using their own funds to trade U.S. stocks. The setup process is relatively simple and typically requires only personal information and identity verification documents.

• Company accounts: This type of account allows you to trade U.S. stocks under your company’s name, which may offer benefits such as asset separation and access to the corporate tax rate of up to 30%.

• Trust accounts are suitable for investors focused on asset protection and tax planning. They allows for flexible distribution of income to family members in lower tax brackets, helping reduce the overall household tax burden. A 50% CGT discount may apply if assets are held for over 12 months.

• SMSF (Self-Managed Super Fund) accounts are specifically designed for retirement planning, allowing individuals to contribute pre-tax income into their superannuation and benefit from long-term compound growth. During the accumulation phase (before retirement), investment earnings are taxed at a concessional rate of 15%. In the retirement phase, income and withdrawals may be tax-free, subject to current superannuation laws and the transfer balance cap.

Moomoo supports Australian investors in opening all four types of accounts. It's important to note that the required documents can vary significantly between account types. If you're unsure about what's needed for a specific account, check out our guide: How to open an account at Moomoo.

At the same time, if you encounter any issues during the account setup process, moomoo offers 24/5 customer support to assist you. Our smart AI system can quickly identify your needs, and real customer service agents are always on standby to help you resolve any account-opening challenges.

Step 3: Complete a W-8BEN form

According to regulations set by the U.S. Internal Revenue Service (IRS), Australian residents must complete a W-8BEN form in order to invest in U.S. stocks. This form is used to declare that you are not a U.S. resident for tax purposes. Moomoo will send the form to you via email, and you can complete it online without needing to download anything. By submitting the W-8BEN form, you’ll be eligible for a reduced withholding tax rate on dividends earned from your U.S. stock investments.

Step 4: Fund your account

Once you’ve completed a W-8BEN form, the next step is to deposit funds so you can start buying US stocks. Generally, brokers accept several deposit methods, including traditional bank transfers, BPAY, credit/debit cards, and e-wallets.

While standard bank transfers are widely used, they may take a few business days to process, which can delay your ability to trade. To speed up this process, moomoo now supports PayID, a fast and convenient payment system that allows instant transfers directly from your bank account. If your bank account name is the same as your moomoo account name, your money will arrive within 5 minutes! Faster deposits mean you can act quickly on market opportunities without worrying about delays that could cause you to miss the right moment to invest.

And when your funds arrive, you can rest assured they’re safe. Moomoo Australia's clients funds are held in designated client money trust accounts held with CBA, HSBC and MUFG which are fully segregated from moomoo's own funds.

To buy U.S. stocks, you’ll need enough USD in your account. If you go to traditional banks for currency exchange, the process may take longer and may include hidden fees or poor exchange rates. With moomoo's in-app currency exchange feature, you can instantly convert AUD to USD with zero fees, no extra accounts, and no hidden FX costs. Simply go to moomoo App> Accounts> Transfer> Currency Exchange, select your currencies, enter the amount, and submit your request.

Step 5: Research US stocks

Before investing in any stock, it's important to do your homework. Proper research can help you understand the company’s financial health, competitive position, and future growth potential. Here are some practical ways to research a stock and make more informed investment decisions.

1. Understand what the company does and how it makes money

Before investing, it’s essential to understand the company’s core business and how it generates revenue. Start by exploring its official website and reviewing the investor relations section for reports, updates, and strategic plans. Your trading platform can also be a great resource. moomoo can stay on top of the latest market developments through 24/7 news updates from leading global financial media.

2. Check out its financial health

You can start by examining key financial statements such as the income statement, balance sheet, and cash flow statement to assess profitability, debt levels, and cash management. Also, you should pay attention to valuation metrics like the price-to-earnings (P/E) ratio and earnings growth to determine if a stock is fairly priced compared to its peers. To simplify this process, moomoo offers visualized fundamental analysis, making it easier to evaluate a company’s financial stability, valuation, and growth potential.

For example, if you want to research Nvidia’s fundamentals, simply open the moomoo app, search for “NVDA,” and tap on “Company.” Here, you’ll find a wide range of data including company valuation, operating metrics, revenue breakdown, financial estimates, key financial ratios, income statements, and more.

3. Use price charts to identify key trends

Price charts help you spot medium- to long-term trends in a company’s share price, making them a valuable tool when evaluating an investment opportunity or testing your instincts about where a stock might be headed. While it may take time to get comfortable reading charts, moomoo offer a variety of interactive tools that let you track a company’s performance over different time periods and gain deeper insights into market movements.

The following is the stock price chart of NVIDIA.

If you have a busy schedule and don’t have time to dive into detailed stock analysis. Moomoo’s real-time Ranking Lists allow you to monitor market movers across major indexes like the Dow Jones, NASDAQ, and S&P 500. These rankings highlight trending stocks based on selected metrics, helping you stay informed about current market activity.

To further support your research, moomoo offers an in-app AI-powered bot. You can ask it questions like, “Is it a good time to buy NVIDIA?” and it will provide insights based on recent price trends and earnings reports, giving you a smarter way to evaluate your options.

Step 6: Buy your preferred US shares

After choosing your preferred stock, you can begin your U.S. investing journey!

When you actually start investing, you’ll find that reality can be challenging, because U.S. markets often operate overnight for Australian investors, which can make it challenging to monitor price movements in real time. Moomoo’s extended trading hours help address this by enabling you to place trades before and after standard market hours. Whether you want to manage your positions in response to overnight news or prepare for the trading day ahead, moomoo provides tools to support greater flexibility.

If you don’t have time to monitor the market, moomoo offers up to 13 advanced order types to help automate your strategy and reduce emotional decision-making. For example, limit orders let you buy or sell at your ideal price without chasing the market. Stop-loss orders allow you to pre-set an exit point to minimise losses if a stock falls, while take-profit orders help lock in gains automatically when your target price is reached.

Step 7: Monitor your stock portfolio

Keep a close eye on market trends and adjust your investment portfolio as needed. Regularly assess your risk-return profile and make timely changes based on any shifts in your financial situation. A successful portfolio should remain flexible and well-balanced, requiring you to periodically review and optimize your allocations to adapt to ever-changing market conditions and personal needs.

Moomoo's asset analysis feature helps you evaluate your investment performance. Simply open the moomoo App → go to the "Account" page, and you can view your comprehensive asset overview with one click. There's no need to manually organize data from multiple accounts, making it easy to get a complete picture of your investments.

Moomoo provides you with multi-dimensional asset analysis:

• Total Net Asset Value is updated in real-time, displaying the total value of all your accounts, covering various asset types such as cash, stocks, ETFs, funds, and more;

• Market Distribution clearly presents the proportion of your assets across different markets, such as US stocks and Hong Kong stocks, helping you understand your global asset allocation;

• Investment Return Rate automatically calculates performance based on cost price versus current market value, accurately showing the return rate for each asset without tedious manual calculations.

Through moomoo's comprehensive asset analysis features, you can ensure every investment is crystal clear, making it easy to manage your global investment portfolio. If you want to learn more about asset analysis, you can click here.

Some basics of buying US shares in Australia

Buying US stocks from Australia is quite similar to investing in ASX-listed shares. You’re still purchasing a stake in a real company and becoming a part-owner entitled to potential profits. However, there are a few important differences to keep in mind when investing in overseas markets.

To start with, U.S. shares are international assets, which means the tax treatment may differ from local investments. For example, U.S. dividends don’t come with franking credits because they aren’t covered by Australia’s dividend imputation system.

Additionally, the U.S. government typically applies a 15% withholding tax on dividends paid to foreign investors. In most cases, this can be offset or claimed back during tax time, but it's best to speak to a tax professional to understand your specific situation.

Like Australian shares, any gains you make when selling U.S. shares are still subject to capital gains tax under Australian law. So if you sell your U.S. stocks for a profit, you’ll need to report those earnings when lodging your tax return.

Finally, since U.S. stocks are traded in U.S. dollars, you’ll need to convert your Australian dollars before buying in. Currency exchange rates between AUD and USD can be quite volatile, which means your investment value could fluctuate based not only on the stock’s performance, but also due to changes in the exchange rate.

What are the key factors to consider before buying US shares?

1. Trading hours and time zone differences

2. Currency conversion and exchange rate impact

3. Tax implications for Australian investors

4. W-8BEN form requirement

5. Understanding US market indexes

6. Market size and liquidity

Trading hours and time zone differences

One of the first things Australian investors need to consider when buying U.S. shares is the time zone difference. The regular U.S. trading session runs from 9:30 a.m. to 4:00 p.m. Eastern Time (ET), which is 11:30 p.m. to 6:00 a.m. AEST (during Daylight Saving Time). For Australians, this means most U.S. stock trading happens while you’re asleep.

The U.S. stock market operates during hours that typically fall overnight in Australia, which can make it difficult to trade in real time, especially if you don’t want to stay up late.

However, moomoo’s 24/5 access to U.S. markets allows you to place trades outside of regular U.S. trading hours. This can be helpful for adjusting positions before the market opens, responding to news after hours, or managing your portfolio across time zones.

Please note that extended hours trading may involve reduced liquidity and higher volatility.

Currency conversion and exchange rate fluctuations

When buying U.S. shares from Australia, currency conversion and exchange rate fluctuations are important factors to consider. Since U.S. stocks are priced in USD, you'll need to convert your Australian dollars before investing. Traditional methods through banks can be slow, costly, and often involve hidden fees or unfavourable exchange rates. You can use moomoo currency exchange feature to instantly convert AUD to USD with zero fees, no extra accounts, and no hidden FX costs.

In addition to the conversion process itself, exchange rate volatility can significantly impact your investment. Currency pairs like AUD/USD can fluctuate significantly, a weaker Australian dollar means your purchasing power falls, so the same amount of AUD buys fewer U.S. shares. For example, if the AUD falls from 0.69 to 0.64 USD, your capital buys about 7% fewer shares of a U.S. stock bought in USD. Conversely, a depreciating AUD can boost your returns when converting profits back into Australian dollars.

Tax implications for Australian investors

When investing in U.S. shares as an Australian resident, it's important to understand the potential tax obligations in both countries. While you may be subject to a 15% withholding tax on U.S. dividends under the U.S.–Australia tax treaty, you’ll also need to report capital gains and dividend income to the Australian Taxation Office (ATO). Just like with ASX shares, any profit made from selling U.S. shares is generally subject to Australian capital gains tax (CGT).

To help simplify the process, moomoo offers online tax form that automatically generates standardized tax templates aligned with ATO requirements. These reports cover key areas such as capital gains, dividend income, and deductible expenses, making it easier to organize your investment-related tax information.

Major US Stock Market indexes

Before investing in the U.S. shares, it's essential to grasp the key market indexes that reflect the performance of different segments of the American stock market. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite are the main indexes of the US market.

• Dow Jones Industrial Average (INDEXDJX: .DJI) is the oldest share market index in the world and includes 30 of the largest publicly traded U.S. companies. However, unlike most modern indexes, the Dow is price-weighted, which means companies with higher share prices have more influence on the index, regardless of their overall market size. Because of this method, some critics consider it less reflective of the broader market today, though it remains a symbolic fixture of Wall Street.

• The S&P 500 Index (INDEXSP: .INX), by contrast, has become the most widely used benchmark for the U.S. stock market. Similar to Australia’s All Ordinaries, the S&P 500 tracks the largest 500 U.S. companies by market capitalization and uses a more modern weighting system. It's considered a strong indicator of overall market performance.

Next step in your journey: Learn how to buy the S&P 500 in Australia>>

• Another major index is the NASDAQ Composite (NASDAQ: .IXIC), with its top 100 companies forming the NASDAQ-100 (NASDAQ: NDX). The NASDAQ exchange is known for attracting newer and high-growth companies, especially in the tech sector. As a result, the NASDAQ indices are heavily weighted toward technology giants like Apple, Microsoft, Alphabet (Google), and Meta. For investors seeking tech exposure, these indexes can be particularly appealing.

Learn more about How to Buy Google Shares in Australia>>

Market size and liquidity

The U.S. stock market stands as the largest and most liquid globally, featuring exchanges like the New York Stock Exchange (NYSE) and Nasdaq, which host thousands of companies, including major global brands. This vast scale and liquidity mean that stocks typically have tighter bid-ask spreads, facilitating easier buying and selling without significant price impacts.

For Australian investors, this high liquidity translates to smoother trade executions and reduced transaction costs. The ability to enter and exit positions swiftly is crucial, especially when responding to market news or adjusting investment strategies. Moreover, the extensive range of available stocks allows for greater diversification across various sectors and industries.

W-8BEN form

To invest in U.S. shares as an Australian resident, you must complete a W-8BEN form. This form is used to certify that you are not a U.S. taxpayer and is a requirement under U.S. tax regulations. Once submitted, the W-8BEN allows you to benefit from reduced withholding tax rates on dividends earned from your U.S. investments, in line with the tax treaty between Australia and the United States.