How to Buy US Stocks from Emerging Markets: A Step-by-Step Guide
Learn how to overcome high fees, capital controls, and administrative hurdles when buying US stocks from emerging markets using tokenization and stablecoins. A step-by-step guide.
The Challenge: Why Global Stock Markets Are Hard to Access
For many investors in emerging markets, participating in global equity markets has long been a complex and expensive process. Traditional financial systems create significant barriers that can place promising assets like US stocks and ETFs out of reach. These challenges often fall into three main categories: prohibitive costs, administrative hurdles, and financial gatekeeping.
First, the costs can be substantial. Sending money across borders to fund a US brokerage account often involves high fees and poor exchange rates. According to the World Bank, the average cost of sending remittances from Brazil was 9.96% in the first quarter of 2023, making it one of the most expensive G20 countries for outbound transfers. For a direct transfer from Vietnam to the US, a traditional bank SWIFT transfer could cost between $45 and $105 after including upfront fees and currency conversion spreads of 2-4%.
Second, administrative hurdles are often discouraging. Opening an international brokerage account typically requires extensive paperwork and slow, opaque approval processes. This bureaucracy effectively excludes many individuals. According to the World Bank's 2021 Global Findex database, 1.4 billion adults globally remain unbanked, making it difficult for them to meet the documentation requirements of traditional foreign institutions.
Finally, financial gatekeeping, including capital controls, can prevent investment entirely. Many nations impose regulations that limit the amount of currency that can be moved abroad. India’s Liberalised Remittance Scheme (LRS), for example, caps outbound personal transfers at $250,000 per year, with anything above that requiring approval from the Reserve Bank of India. In its 2024 Article IV consultation, the International Monetary Fund (IMF) noted Nigeria’s use of capital flow management measures, which can create practical barriers for investors seeking to access foreign currency.
The Solution: How Tokenized Stocks Create a Direct Path
Tokenized stocks offer a direct and efficient alternative to the legacy financial system. On our platform, a tokenized stock is a digital token on a blockchain that represents a one-to-one claim on a real-world share. When you buy one tokenized share of a company like NVIDIA, you are buying a token that is fully backed by one share of NVDA held in a segregated custody account on your behalf.
This 1:1 backing is the foundation of our model. We hold the underlying assets at regulated, third-party US broker-dealers, including Interactive Brokers and Alpaca Markets. These shares are kept in accounts that are segregated from our own company assets, ensuring they remain secure and designated for our users. This structure provides direct economic exposure to the stock's performance, including price movements and value accrued from dividends.
To ensure transparency, we provide an on-chain proof of reserves system. This allows anyone to independently verify in real time that the number of tokens we have issued on the blockchain matches the number of shares held in our custody accounts. This level of audibility stands in contrast to the opaque reporting of traditional finance.
Unlike traditional shares, which are recorded in a brokerage's centralized ledger, these tokens exist on public blockchains like Base and Arbitrum. They live in your own self-custodial wallet, giving you direct control over your assets. This combination of real-world asset backing and on-chain technology creates a more accessible, transparent, and efficient way to invest in global markets.
5 Key Advantages for Emerging Market Investors
Tokenization directly addresses the most significant barriers faced by investors in developing economies. The model provides five distinct advantages that open up access to global markets.
- Permissionless Onboarding
Instead of navigating complex paperwork and long approval times, you can connect to our platform in seconds using an existing crypto wallet or by creating a new one with an email or Google account. This removes the traditional gatekeepers, allowing anyone with an internet connection to get started. - Stablecoin Rails
Funding an account with stablecoins like USDC and USDT bypasses the friction of international wire transfers and capital controls. Stablecoins are globally accessible digital dollars that can be moved quickly and cheaply. According to a 2024 report from crypto exchange CEX.IO, stablecoin transfer volumes surpassed the combined volume of Visa and Mastercard. By using stablecoins, you can avoid high bank fees and unfavorable FX rates, making cross-border value transfer nearly instant and far more efficient. - Drastically Lower Costs
Our pricing model is simple and transparent. We charge a single trading fee between 0.10% and 0.20% (10 to 20 basis points), which is included in the quoted price. There are no fees for deposits or withdrawals, and no custody or inactivity fees. This contrasts sharply with the layered costs of traditional cross-border investing. - Fractional Investing from $1
Many of the world's most dynamic companies have high share prices, making a single share unaffordable for many. Tokenization allows for fractional ownership, meaning you can buy a small piece of a share for as little as $1. This enables you to build a diversified portfolio of high-quality US stocks and ETFs, regardless of your capital size, helping to address what the International Finance Corporation (IFC) identifies as a $5.2 trillion financing gap for smaller businesses in developing countries. - 24/7 Access and Self-Custody
Because your assets are on-chain tokens held in your own wallet, you have full control over them, 24/7. You can manage your portfolio, place orders, and move your assets without being limited by traditional market hours or waiting for a financial intermediary to process your request. This provides a level of autonomy and flexibility that is not possible in the traditional brokerage system.
How to Buy Your First Tokenized Stock on GM Markets
Getting started with tokenized stocks on our platform is a straightforward process designed for simplicity and accessibility. Here are the five steps to acquiring your first tokenized asset.
- Connect or Create a Wallet
Visit the GM Markets platform and choose to either connect an existing Web3 wallet (like MetaMask or Rainbow) or create a new, secure smart wallet using your Google account or email address. This process takes only a few seconds. - Deposit Stablecoins
Once your wallet is connected, you can fund your account. Deposit USDC or USDT from a crypto exchange or another wallet. We support deposits on multiple blockchains, including Base, Arbitrum, Ethereum, and Optimism. There are no deposit fees charged by our platform. - Select a Stock or ETF
Browse our list of available markets, which includes popular US stocks like Apple (AAPL) and Tesla (TSLA), as well as broad-market ETFs like the SPDR S&P 500 ETF (SPY). - Execute Your Trade
Enter the amount of USDF (our internal stablecoin balance backed 1:1 by your USDC and USDT deposits) you wish to invest. You will receive a real-time price quote. This quote is all-inclusive, with our small trading fee already factored in. Confirm the transaction to execute the trade on-chain. - View Your Position
After the transaction is confirmed on the blockchain, the tokenized stock will appear in your portfolio. The token is held directly in your self-custodial wallet, giving you complete ownership and control over the asset.
Understanding the Security Model and Risks
While tokenization creates new opportunities, it is essential to understand both the security model and the associated risks. Our platform is built with multiple layers of security to protect user assets. The underlying shares are held in segregated accounts at regulated US broker-dealers, insulating them from our own business operations. The embedded wallets we provide use multi-party computation (MPC), a technology that removes single points of failure by distributing key management, so no single entity can access your funds.
However, all investments carry risk. The value of stocks and ETFs can go down as well as up, and you may receive back less than you invested. In addition to market risk, digital assets have specific risks, including the potential for smart contract vulnerabilities and counterparty risk with the liquidity providers who execute trades. The global regulatory landscape for tokenized assets is also still developing, as highlighted in reports from bodies like the International Organization of Securities Commissions (IOSCO).
We believe in transparency and empowering users with information. We encourage you to read our documentation, understand how our tokenization model works, and consider your own risk tolerance before investing.
Frequently Asked Questions
Do I own the actual stock when I buy a tokenized version?
You own a token that represents a 1:1 claim on the underlying share. This gives you full economic exposure to the asset's price performance and dividends, which are reinvested to increase the token's value. While you do not receive shareholder voting rights, you gain the benefit of on-chain composability, allowing you to use your asset in DeFi protocols.
What are the main costs compared to a traditional broker?
The primary cost on GM Markets is a single trading fee of 10 to 20 basis points (0.10%-0.20%), which is included in the price you are quoted. We do not charge fees for deposits, withdrawals, custody, or account inactivity. This is typically much lower than the combined costs of using a traditional broker for cross-border investments, which often include wire fees, currency conversion spreads, and higher trade commissions.
How do I convert my tokenized stocks back to cash?
You can sell your tokenized stocks on our platform at any time for USDF, our internal stablecoin balance. From there, you can withdraw the stablecoins (as USDC or USDT) to an external wallet or a crypto exchange, where you can convert them into your local currency. The process is designed to be as seamless as converting any other digital asset.
Is this service available in my country?
Our platform is designed to be globally accessible and permissionless. However, due to regulatory constraints, we do not offer our services to users in the United States or other restricted jurisdictions. You are responsible for ensuring compliance with your local laws and regulations regarding digital assets and foreign investments.
Conclusion: Start Building Your Global Portfolio
Tokenization is fundamentally changing the structure of financial markets, breaking down decades-old barriers that have limited access for investors in emerging economies. By leveraging blockchain technology and stablecoin rails, GM Markets provides a direct, efficient, and low-cost path to owning a piece of the world's most important companies.
Instead of dealing with high fees, slow transfers, and complex paperwork, you can now build a diversified global portfolio from your laptop or phone in minutes. To get started, you can create a wallet and explore our available markets.
GM Markets does not provide financial, investment, or tax advice. All investments carry risk, and you may lose money. Our platform is not offered to users in the United States or other restricted jurisdictions.
