If you let your money sit in a savings account in Singapore, you could earn 1% to 3.80% in interest. However, if you invest your money in the right places, you could actually double your money. For example, according to a study by Futu Holding Limited, 18.8% of millennial investors achieved over 100% investment returns, and 1 in 5 millennial investors saw their position double. That’s all thanks to the power of compounding interest, or the Rule of 72 which is a formula that calculates how long it’ll take for an investment to double, based on its rate of return.
The Rule of 72:
Years to double your investment = 72/Interest Rate; where Interest Rate = Rate of return on an investment
So how long can it take to double your investments?
| Rate Of Return | Years To Double Your Investment | Examples |
|---|---|---|
| 1% | 72 | Standard Savings Account |
| 3% | 24 | Bonds |
| 9% | 8 | Stocks |
Multiplying your money can be possible by creating an investment strategy and making smart financial decisions. One such way is through buying and selling stocks in the US stock market.
Should Singaporeans trade US stocks?
The US stock market accounts for 70% of the MSCI World Index, which represents stock markets worldwide. In particular, the New York Stock Exchange is the largest stock exchange in the world, with an equity market capitalisation of over US$28 trillion as of March 2024. Trading US stocks presents ample opportunities for Singaporean investors especially when it comes to trading stocks from the highest valued global companies including Apple, Amazon, and Microsoft.
Investing in US stocks is also a recommended method to diversify your trading portfolio. If it’s your first time trading US stocks, consider investing in high-growth industries such as the energy sector, technology sector, and consumer discretionary sector.
What are the most common US stocks to buy?
According to a study by FUTU Holdings, an uncertain future resulting from the COVID-19 pandemic resulted more millennials and Gen Z investors to take greater ownership of their finances by investing in stocks. More specifically, millennials allocate 64% of their investment budget into stocks while Gen Z allocates 62% towards stock trading. Here are the top 10 US stocks traded by Millennials and Gen Z in Singapore.
Top 10 US stocks traded by millennials and Gen Z
| Ranking | Millennial | Gen Z |
|---|---|---|
| 1 | TSLA | TSLA |
| 2 | NIO | AAPL |
| 3 | AAPL | NIO |
| 4 | BABA | SQQQ |
| 5 | PDD | BABA |
| 6 | BILI | BA |
| 7 | BA | TSM |
| 8 | JD | AMD |
| 9 | XPEV | MSFT |
| 10 | LI | ZM |
If you’re wondering how to set up an investment brokerage account or if it’s your first time buying US stocks, investing is now easier than ever, especially when you’re using the right trading platform such as moomoo powered by Futu.
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Benefits of using the moomoo app
- Fast trading: Place a trading order in less than 3 seconds
- Competitive fees: For stocks and ETFs traded, users pay an affordable rate of $0.0049 per share with a minimum purchase of $0.99 (find out more here)
- News and Information: Comprehensive market information and news provide in-depth knowledge for overseas stock trading
- Market insights: Real-time Level II Quotes with millisecond-level updates
- Social investment community: Live boarding and interactive communities enhance the investment experience and empower individual users
To learn more about moomoo, please refer to their website.
How to open FUTU SG securities account via moomoo app
- 1. Download the moomoo app on Google Play Store or Apple App Store
- 2. Click ‘Getting Started’ and register using your Facebook account, Google account or email address and phone number
- 3. Click ‘Open Account’ and sign up using MyInfo or enter your details manually by following the easy onscreen instructions
How to start trading stocks with Futu SG
- 1. Login to the moomoo app and click ‘Me’ then ‘Deposit’
- 2. Choose SGD under ‘Deposit Currency’
- 3. Use your Singapore bank account to transfer money by entering your moomoo ID under the ‘Comments’ field and your Singapore bank account details (funds will be transferred in 1-3 working days)
For further assistance on opening your stock trading account or trading stocks on moomoo trading platform, contact clientservice@futusg.com
Check out our roundup of the best online brokerages to start trading today!
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