Recently, many friends have asked me how to transition from the cryptocurrency space to US stocks. Today, I will share this path with an overall fee of about 20U.
Step 1: Register and operate on Binance
First, prepare USDC, then withdraw it to Backpack via the SOL chain. Additionally, to prevent being asked for additional proof of source later, make sure to export the statement for backup.
Step 2: Register and use Backpack
First, complete all levels of KYC. Then transfer USDC via the SOL chain, and choose to withdraw in fiat currency by filling in the bank receiving information. It is essential to know that USDC and USD will be automatically exchanged and remitted at a 1:1 ratio.
Step 3: Bank receives funds
1-3 days later, you will receive an email from a Hong Kong bank, which will show that the remittance comes from 'Royal Bank of Scotland'. It is important to note that if the receiving bank is ZA, a service fee of 20U will be deducted, while other banks will not deduct any fees.
Step 4: Transfer to broker
Register with a US stock broker in Hong Kong in advance and complete KYC, then deposit funds into the US stock broker using a Hong Kong card via eDDA or Faster Payment System. This completes the entire operation.
Related Notes
Based on past experiences of withdrawing USDC from Binance to Backpack:
For amounts under 20,000 to 50,000 U, it can basically be received instantly, and you can directly apply for withdrawal.
For amounts above this range, it is highly likely that you will be required to provide additional proof of source via email. At this point, the statement exported in Step 1 will come in handy.
Currently, all withdrawal institutions recognize the proof of funds from Binance. However, if you use second or third-tier exchanges and transfer a large amount of USDC to Backpack or Kraken, you may encounter situations where additional proof of source is required. These smaller exchanges' proofs may not be recognized, leading to potential fund freezes. Personal experience shows that Binance's statements are accepted.
Regarding US stock brokers, Chinese brokers like Futu, Tiger, and ChangQiao no longer open accounts for new users from mainland China. However, US brokers like Interactive Brokers can still open accounts. It should be noted that Chinese brokers have synchronization issues with mainland tax, while US brokers have synchronization issues with US tax, which needs to be considered for significant future profits.
There are other channels available in the market, such as Kraken - European Bank - Hong Kong Bank - Broker, but the fee costs are relatively high, so the above path is recommended. I hope it helps everyone.
