From a practical standpoint, investing in US shares versus AUS shares looks similar on the Pearler platform. Both require setting up a Pearler Shares investment account and you place orders as normal with a brokerage fee of $6.50 AUD (plus 0.5% per FX conversion for US shares).

Some Pearler investors choose to invest in US shares as it gives them access to more US companies. You can also invest in US holdings through ASX ETFs, however your options for investing in the US market are limited. Some companies are only available by investing in direct US shares.

The other difference is ownership. Investing in AUS shares on Pearler is CHESS-sponsored, which means you hold your shares directly with the ASX. When you invest in US shares on Pearler, they’re under a custodial system, so a custodian broker holds the shares on your behalf. In the first case, you’re listed as the owner. In the second, the custodian is listed as the owner and you’re the beneficiary. The good news is the W8-BEN tax form is completed for you by the broker when you open a US account.

Speaking of taxes, another key difference is the tax treatment of your investments. When you invest directly in US shares, there are additional US tax implications to be aware of. So, as we always say, do your research!

For more information on investing in US shares, read our US Investing FAQs.