Guide to Buying Foreign Stocks in 2025: Access the US Stock Market from Vietnam

The US stock market has become an attractive choice for Vietnamese investors thanks to its endless profit opportunities. With over 6,300 traded stocks, it is the largest stock exchange in the world, focusing on tech giants like Apple, Amazon, Google, along with thousands of other companies with strong growth potential.

Why Should You Buy Foreign Stocks?

Superior Profit Opportunities

Profits from the US stock market far exceed those in the domestic market. The S&P 500 index — representing the top 500 US companies — has increased by over 39% since May 2018, while the VNIndex has decreased by more than 9% during the same period. Even the Nasdaq index, focused on tech stocks, has grown impressively by up to 64%.

Diversify Your Investment Portfolio

Owning stocks from international companies helps reduce risks when the local economy faces difficulties. Especially when facing exchange rate pressures and interest rate fluctuations, buying foreign stocks is a solution to protect your assets.

Wide Range of Choices

From giant tech corporations to financial, retail, and pharmaceutical companies — investors have the opportunity to choose according to their strategies without the limitations of the domestic market.

Tools to Access the US Stock Market

Individual investors without US citizenship cannot trade directly on NYSE or NASDAQ. Instead, two main derivative tools are widely used:

ETF Funds — A Long-Term Investment Choice

Exchange Traded Funds (ETF) are funds that mimic stock indices, combining features of investment funds and regular stocks. Advantages include:

• Low costs and easy diversification with a single transaction
• No need for deep understanding of individual stocks
• Limiting market manipulation impacts

Famous ETFs tracking the S&P 500 include: Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF (SPY), iShares Core S&P 500 ETF (IVV)...

CFD Contracts — More Flexible with Higher Opportunities

Contracts for Difference (CFD) allow investors to trade individual stocks without owning them. You profit from price differences when stocks go up or down.

Key advantages:

• More flexible than ETFs — can profit even when prices fall (short selling)
• Access the entire global market from a single platform
• Trade outside regular hours
• Relatively low transaction costs

Top 10 Stocks to Start Investing

| Company Name | Ticker | P/E Ratio | Sector | |---|---|---|---| | Tesla | TSLA | 60 | Automotive/Energy | | Amazon | AMZN | 78.31 | E-commerce | | Apple | AAPL | 22.07 | Consumer Technology | | Alphabet Inc | GOOGL | 16.37 | Technology/Advertising | | Meta Platforms Inc | META | 9.65 | Social Media | | Microsoft Corp | MSFT | 23.48 | Software | | NVIDIA Corp | NVDA | 36.94 | Semiconductors | | Pfizer Inc | PFE | 8.88 | Pharmaceuticals | | Advanced Micro Devices | AMD | 35.46 | Semiconductors | | JPMorgan Chase & Co | JPM | 10.95 | Banking |

Note: Prices and P/E ratios are constantly changing. This data is for reference only at the time of writing.

How to Start Trading Foreign Stocks

Step 1: Choose a Reputable Trading Platform

Selecting a licensed and well-regulated broker is the most important step. Check if they are managed by international financial authorities like ASIC, FCA, etc.

Step 2: Register an Account

Fill in your personal information on the registration form. Most platforms require identity verification.

Step 3: Deposit Trading Capital

Transfer funds into your account. The minimum usually starts from $50 or higher depending on the platform. If you’re not confident, start with a small amount.

Step 4: Find Trading Opportunities

Use analysis tools, price charts, and economic calendars to identify suitable entry points.

Step 5: Execute Buy/Sell Orders

Place buy orders when you forecast prices will rise or short sell when you expect a decline. With CFD tools, you have this flexibility.

Step 6: Manage Your Positions

Since derivatives use leverage, profits and losses are amplified accordingly. Therefore, regularly monitor, take profits promptly, and cut losses when necessary.

The Three Main US Stock Exchanges

NYSE — Where Giants Show Their Strength

Founded in 1792, the New York Stock Exchange is the oldest and largest stock exchange. Long-established and major US companies are listed here. As of mid-2022, NYSE handles about 5 billion shares daily with a market capitalization close to $24.6 trillion (.

Operates Monday to Friday, from 9:30 AM to 4:00 PM US time.

) NASDAQ — The Tech Company Paradise

Founded in 1971, NASDAQ is the world's first electronic stock exchange. With less strict listing standards than NYSE, it focuses on new tech companies, startups, and foreign firms.

Unique feature: Stocks on NASDAQ tend to be more speculative but also have greater growth potential.

Two Exchanges Compete, Serving Different Groups

Both open at the same hours, follow similar basic trading rules but serve different types of companies. NYSE symbolizes stability, NASDAQ symbolizes innovation.

Three US Stock Indices You Need to Know

S&P 500 — Measuring Market Sentiment

Comprising 500 top companies selected based on market capitalization, liquidity, and other factors, this index represents about 80% of the total US market value.

Significance: The S&P 500 reflects overall trends and the health of the US economy. Using a market-cap weighting method, fluctuations of individual companies impact the index proportionally to their size.

Dow Jones — Indicator of Leading Companies

Made up of 30 of the largest and most influential US companies, Dow Jones accounts for about 25% of the entire market value.

Unique feature: Uses price weighting instead of market cap, so high-priced stocks have a stronger influence on the index. Dow is famous for its list of "blue-chip" companies — reputable firms that regularly pay dividends.

Nasdaq Composite — Leading Tech Stocks

Includes all stocks traded on NASDAQ, regardless of nationality, but mainly technology.

Significance: Nasdaq Composite reflects the performance of the tech sector and investor sentiment toward speculative companies. It includes both large giants and small emerging firms, making it more volatile.

What to Prepare Before Entering the Market?

1. Learn About Your Trading Platform

Your broker is the gateway to the market. Choosing the wrong platform directly affects profits and asset safety. Check licenses, regulations, trading fees, analysis tools, and customer support.

2. Equip Yourself with Necessary Knowledge

Before investing real money, learn about financial analysis, understand economic indicators, and develop an investment strategy aligned with your goals. Many platforms offer demo accounts with virtual money for practice.

3. Plan Your Finances Carefully

Determine how much capital you can invest without affecting your daily life. If using leverage, be cautious as it amplifies both profits and losses.

Start Your Foreign Stock Trading Journey

Buying foreign stocks is no longer unfamiliar or difficult. With modern derivatives tools like ETFs and CFDs, Vietnamese investors can fully access the US stock market from home.

If you are a long-term investor, ETFs are a safe choice with low costs. If you can tolerate higher risks and seek greater profits, CFDs offer flexibility and higher profit potential.

Whatever path you choose, spend time researching, select a reliable platform, start with a modest amount, and keep learning. The US stock market awaits persistent investors with strategies.