How to Invest as a Bangladeshi in Stocks from US Companies
Introduction
When receiving your salary, it’s a good idea to set aside a portion for future needs such as emergencies, large purchases like a car or property, or simply for retirement. However, keeping money in a regular savings account can cause your wealth to lose value over time due to inflation. To protect your savings and help them grow, you need to invest.
One of the most common and effective ways to grow your wealth is by buying shares of companies, also known as stocks. When you invest in stocks, you become a partial owner of that company and can benefit from its growth over time. This article will explain what stocks are and guide you step by step on how to invest in US company stocks as a Bangladeshi.
What are Stocks and How Do They Work
A stock represents ownership in a company. When you buy a share of a company’s stock, you own a small portion of that business. As the company grows and earns profits, the value of your shares can increase. Some companies also pay dividends, which are regular payments made to shareholders from the company’s profits.
For example, if you buy one share of Apple, you own a very small part of Apple Inc. If Apple grows, launches successful products, and earns more money, its stock price can rise. You can then sell your shares at a higher price than you bought them for, making a profit.
Stock prices move up and down based on how investors view the company’s performance and future potential. While this means there is always some level of risk, investing in well-established companies over the long term has historically been one of the best ways to build wealth.
Step-by-Step Guide
1. Find a Stock
Start by identifying companies that are publicly traded and that you believe will grow in value over time. Look for businesses that you understand, that have a solid track record, and that operate in industries you think have a bright future.
You can discover potential stocks directly within the nsave app (see our guide on how to download the app). You can also read financial news articles, follow investment blogs, or check company profiles on trusted financial websites such as Yahoo Finance or Bloomberg.
2. Decide How Much You Would Like to Invest
Before you buy any stock, plan how much of your savings you want to invest. Here are a few general principles to help you decide:
- Diversify your investments: Instead of putting all your money into one company, consider spreading your investments across several stocks, exchange-traded funds (ETFs), or even other asset classes such as bonds or gold. This reduces your risk if one investment performs poorly.
- Keep some cash available: It’s wise not to invest all your savings at once. Keep a portion in cash for emergencies or to take advantage of opportunities if the stock market falls.
- Invest only what you can afford to lose: Stocks can be volatile. If a company performs badly or goes bankrupt, you could lose your investment. Always make sure you are comfortable with the amount you invest.
3. Buy the Stock easily with nsave
With nsave, investing in stocks is simple. Search for the company you are interested in, select “Buy,” and enter the amount you would like to invest. Within seconds, your purchase is complete and you officially own shares in that company.
You can track your portfolio in the app and monitor how your investments perform over time.
How Long Should You Hold Stocks
Investing works best when you think long term. Stock markets move up and down every day, but over many years they tend to grow in value. Holding your investments for several years helps smooth out short-term price changes and reduces the risk of selling at a bad time.
As a general rule, aim to hold stocks for at least a few years. Many investors even recommend holding for ten years or longer. The longer you stay invested, the more your money benefits from compound growth, where your earnings themselves begin to earn returns — a powerful effect that can significantly increase your wealth over time.
FAQs
1. Can I invest in US stocks legally as a Bangladeshi?
Yes. With apps like nsave, Bangladeshis can legally invest in international markets, including US-listed companies. The platform handles the process of converting currency and executing trades for you.
2. Do I need a US bank account or citizenship?
No. You can invest as a Bangladeshi without having a US citizenship. The nsave app takes care of international transfers and complies with all relevant regulations.
3. How much money do I need to start?
You can start with a small amount. nsave allows you to buy fractional shares, meaning you can invest even if you do not have enough to buy a full share of expensive companies like Amazon or Tesla.
4. Are there any risks?
Yes. Stock prices can go up or down, and you could lose money, especially in the short term. However, by diversifying your investments and holding them for the long term, you can greatly reduce your overall risk.
5. Do I have to pay taxes on my investments?
Earnings from foreign investments may be subject to taxes according to local regulations. It’s recommended to consult a local tax advisor to understand your personal situation.
6. Is it Sharia compliant to invest in stocks?
Investing in stocks can be Sharia compliant, but it depends on the company’s business activities and financial practices. For example, companies involved in alcohol, gambling, or interest-based financial services are generally not considered halal.
Within the nsave app, you can easily check the Sharia rating of each stock. This rating helps you understand whether investing in a particular company aligns with Sharia principles, making it easier to make faith-conscious investment decisions.
Conclusion
Investing in US stocks allows you to become part of some of the world’s leading companies and grow your wealth over time. By learning the basics, setting clear goals, and following a long-term strategy, you can take control of your financial future.
Start small, stay consistent, and let your money work for you. With nsave, investing is just a few taps away.
