You can buy US stocks such as Apple and Microsoft while living in Saudi Arabia. You need three things: an account with a broker that offers the US market, money in dollars, and a buy order placed during New York trading hours. This guide walks through the steps and costs in order, and it does not recommend any broker or stock.
What do you need before you start?
- A valid national ID or residence permit (Iqama).
- Proof of address, such as your national address or a bank statement.
- A bank account in your name to send money from and receive it back.
Step one: which type of broker do you choose?
You have two routes. The first is a local broker licensed by the Capital Market Authority that offers trading in US markets. The second is an international broker that accepts Saudi residents.
A local broker makes opening the account and moving riyals easier, and its service falls under Saudi regulations. An international broker often charges lower commissions and offers more tools, such as options contracts, but sending money to it is an international transfer. Before opening any account, check the broker's license on the regulator's own website, not in its ads.
Step two: opening the account and the W-8BEN form
You fill in the account application and upload your documents. The broker then asks you to sign the W-8BEN form. It is a US form stating that you are not a US resident for tax purposes. Without it, a higher tax may be withheld from your earnings. The form stays valid until the end of the third year after the year you signed it, and then you renew it.
Step three: converting riyals to dollars
US stocks are bought in dollars. The riyal is pegged to the dollar at about SAR 3.75, but the bank or broker takes a margin on the conversion. Example: you convert SAR 3,750 and receive a little less than $1,000, depending on that margin. Ask about it before converting, because it is a cost that does not show up in the commission.
Step four: when to buy, and with which order?
The US market opens at 9:30 am New York time and closes at 4:00 pm. In Saudi time that means 4:30 pm to 11:00 pm during US summer time, and 5:30 pm to midnight in winter. The reason is that the US changes its clocks twice a year and Saudi Arabia does not. The page converts the time for you, live.
When you buy, you see two order types. A market order buys immediately at the available price. A limit order buys only at a price you set or lower. A limit order protects you from a surprise price in the first minutes after the open.
Some brokers let you buy a fraction of a share. If a share costs $500, you can buy $50 worth of it. A US trade settles on the next business day.
How much does it cost?
| Cost | What it is |
|---|---|
| Commission | A fixed amount per trade or an amount per share, and it varies from one broker to another. |
| Currency conversion margin | The gap between the official exchange rate and the rate you actually get. |
| Custody or inactivity fees | Some brokers charge them monthly or yearly, and some do not. |
| Dividend tax | 30% withheld in the US from cash dividends paid to Saudi residents, because there is no tax treaty between the two countries. |
| Tax on profit from selling | The US usually does not withhold it from non-residents. |
Mistakes beginners make
- Buying with a market order in the first minute after the open, when prices jump fast.
- Forgetting the currency conversion margin when calculating profit.
- Opening an account with a broker found in an ad without checking its license.
- Putting all the money into a single stock.
And once you own the stocks?
If you later want to understand options contracts on these stocks, start with What are options contracts? and then the difference between a call and a put.
This is general educational information, not investment or tax advice. Rules and fees change, so check them with the broker and the regulator before any decision.
