Basic Tips Before Starting US Stock Investment
Most companies on the US stock exchanges are the largest market-capitalisation companies in the world. The list includes everything from chip manufacturers to cloud computing providers. Consequently, many companies whose products are used daily in Indonesia can only be owned through the NYSE and Nasdaq.
Access to these markets is now open to Indonesian retail investors without the need to open overseas accounts. However, investing in US stocks brings several considerations that do not arise when trading on the domestic exchange. These include the legality of the provider, time zone differences, and the tax treatment of dividends.
There are four key things that should be understood before the first funds are deposited. The considerations include available access routes, trading time zones, exchange rate risks, and tax regulations.
Ensure the Platform is Licensed and the Products are Clear
Not all applications offering US stocks sell the same types of assets. Some provide actual share ownership, while others sell derivative contracts that merely follow the stock price. Therefore, ensure you check the licensing status of the US stock trading application you intend to use. One legal and safe US stock trading application in Indonesia is Ajaib, where US Stock services are licensed and supervised by the OJK (Financial Services Authority).
Manage Your Order Strategy, Not Your Sleep Schedule
The US market opens at night in Indonesia. However, you do not have to stay up late to trade. The schedule shifts by one hour twice a year. This year, the standard time begins on 1 November 2026, so mark your calendars.
There are practical ways to place US stock orders on Ajaib:
Place limit orders during the day. US stock orders can be sent from Monday 08:00 WIB to Saturday 08:00 WIB. Determine your desired purchase price and let the order execute when the market opens.
Use pre-market trading for rapid reactions. If there was a financial report release overnight, you can trade starting from 16:00 WIB without waiting for the regular session.
Avoid market orders in the opening minutes. Prices can move wildly at the start of the regular session; limit orders are safer for locking in a price.
Calculate the Impact of Exchange Rates Before Buying
When buying US stocks, your profit comes from two sources: the stock price in dollars and the IDR exchange rate. Both can either strengthen or diminish each other. For example, if you buy shares worth USD 1,000 at an exchange rate of Rp 17,790, your capital is Rp 17,790,000. A year later, if the stock price rises by 10% to USD 1,100, the 10% increase might be almost unnoticeable if the Rupiah strengthens during the same period.
Calculate Transaction Costs
In Ajaib, the commission for US stocks is 0.3% for every buy and sell transaction, which includes broker fees and VAT. From the previous example:
Buy commission: 0.3% × USD 1,000 = USD 3
Sell commission: 0.3% × USD 1,100 = USD 3.30
Total cost: USD 6.30, approximately Rp 112,000
Therefore, the stock price needs to rise by about 0.6% just to cover the commission, not including the exchange rate difference. The more frequently you trade, the larger the portion of profit used for costs.
Start with Small Amounts Using Fractional Shares
The price of a single US share can be hundreds of dollars. With fractional shares, you can buy only a portion of a share. In Ajaib, US stock purchases can start from USD 1 (approximately Rp 17,800). For example, with USD 10, you can own 0.02 shares of a stock priced at USD 500 per share.
To begin, open the Ajaib application and enter the US Stocks page. Ensure your US Stocks account is active. Select the stock you wish to buy and click ‘Buy’. Choose the order type: Market Order (enter the amount of USD you wish to spend) or Limit Order (enter the limit price and number of shares). Check the details on the confirmation page, then click ‘Buy’. You can monitor the order status under Portfolio > Order > US Stocks.
Start Investing in US Stocks on Ajaib
With over 650 US stocks and ETFs, and purchases starting from $1, you can begin building a global portfolio directly from the Ajaib application. Start with small amounts, understand the exchange rate patterns and market hours, and then increase your capital gradually.