RealStocks Trading FAQ
1. What are U.S. stocks?
U.S. stocks refer to shares of companies listed and traded on U.S. stock exchanges. The United States is home to the world's largest and most liquid equity market, bringing together leading companies across technology, finance, consumer goods, healthcare, and many other sectors. Many globally recognized companies choose to go public in the U.S., including major technology firms and leading renewable energy companies.
Investing in U.S. stocks allows users to participate in the growth of some of the world's leading companies and share in their business performance. With high market transparency, a well-established regulatory framework, and mature trading mechanisms, the U.S. stock market remains an important option for global asset allocation. For investors seeking to diversify risk and participate in global economic growth, it offers a wide range of opportunities.
2. What is the difference between RealStocks and Tokenized Stocks?
RealStocks on MEXC provides direct access to the U.S. equities market through collaboration with licensed brokers. When users purchase stocks through MEXC, they are buying real shares of publicly listed U.S. companies and are entitled to the associated shareholder rights, including dividends and other ownership benefits. The stock assets belong to the user, who may hold them over the long term and benefit from the company's growth.
While some market participants offer synthetic products that only track price fluctuations, MEXC bridges the gap to real-world ownership. For users who want to genuinely participate in the growth of U.S.-listed companies and obtain shareholder rights, trading with RealStocks through compliant brokerages is a more suitable choice.
3. What currencies are supported by RealStocks trading?
At present, RealStocks on MEXC are quoted in USD, and users can transfer funds using USDT. The platform offers a frictionless conversion experience between USDT and USD, allowing users to move funds without worrying about losses from currency conversion.
4. What are the trading hours for RealStocks?
RealStocks trading follows the schedule of the U.S. securities market.
During Daylight Saving Time (DST), regular trading hours are from 9:30 AM to 4:00 PM ET. Due to time zone differences, this corresponds to 1:30 PM to 8:00 PM (UTC). (Please note that specific times will shift by one hour during Standard Time).
During Daylight Saving Time (DST), overnight trading hours are from 8:00 PM to 4:00 AM ET (next day). This corresponds to 12:00 AM to 8:00 AM (UTC). (Please note that specific times will shift by one hour during Standard Time).
MEXC also provides limited-time Level 1 real-time quotes and extended-hours market data to help users stay on top of market developments. Real-time quotes allow users to track price movements more closely and make more timely trading decisions. Eligible users may also receive real-time market data subsidies to reduce access costs.
5. What are the trading fees for RealStocks?
During the launch period, MEXC is offering a limited-time zero-fee promotion for RealStocks trading, allowing users to trade RealStocks without paying transaction fees during the event period. This significantly lowers the cost of getting started and makes it easier for more users to try RealStocks investing with a lower barrier to entry.
The zero-fee promotion also gives users an opportunity to become familiar with the trading process and explore investment strategies without taking on additional trading costs.
6. What are the sources of return for stocks?
Returns from holding U.S. stocks primarily come from two sources. The first is capital appreciation when the stock price rises. If the price of a stock increases after purchase, the user may choose to sell for a profit or continue holding in anticipation of further upside. The second is shareholder entitlement. As holders of real shares, users may receive dividends or other benefits when a listed company distributes profits.
Together, these two return streams form the basis of U.S. stock investing. Unlike products that are purely designed for price speculation, MEXC partners with licensed brokerages to enable users to become actual shareholders in listed companies and share in the multiple benefits brought by long-term corporate growth.
7. In what currency are dividends distributed?
Dividends from U.S. stocks on MEXC are distributed in USDT and credited directly to users' RealStocks account.
8. Are dividend reinvestment plans (DRIP) supported?
MEXC RealStocks currently does not support dividend reinvestment plans (DRIP). Dividends will be credited as cash.
For other corporate actions, distributions will be handled according to the arrangements announced by the listed company. Eligible distributions may be delivered in USDT or shares. If shares are distributed, they will be automatically added to your stock holdings.
9. How are dividend withholding taxes handled? Can I benefit from tax treaty rates?
MEXC is currently applying for Qualified Intermediary (QI) status with the U.S. Internal Revenue Service (IRS). Before QI status is approved, dividends from U.S. securities are subject to the default 30% U.S. withholding tax rate. Users will receive dividends after applicable taxes have been withheld.
Once QI status is approved, eligible non-U.S. users who have submitted valid tax forms, such as Form W-8BEN or W-8BEN-E, may qualify for reduced withholding tax rates based on their country of tax residence and applicable U.S. tax treaties.
Please note that reduced tax rates generally apply only to future dividend payments after QI status becomes effective. Dividends previously withheld at the default rate are generally not subject to retroactive adjustments.
10. What happens to my holdings if a stock undergoes a stock split or reverse split?
Stock splits and reverse splits are corporate actions. When such events occur, users' holdings will be automatically adjusted based on the ratio announced by the listed company. No action is required.
- Stock split (e.g., 1-for-4 split): The number of shares held by users increases proportionally, while the share price decreases accordingly. The total value of users' holdings remains unchanged.
- Reverse split (e.g., 10-for-1 reverse split): The number of shares held by users decreases proportionally, while the share price increases accordingly. The total value of users' holdings remains unchanged. If fractional shares are generated, we will calculate and distribute the corresponding fractional shares based on data provided by the upstream provider. If the calculated fractional share amount is too small, the value will be converted into USD and returned to users' accounts in USDT.
11. Is RealStocks trading safe?
MEXC partners with licensed brokerages to provide users with real stock assets, with the shares owned directly by the users themselves.
Compared with products that only provide synthetic price exposure, real stock ownership offers greater transparency and clearer asset ownership. Users purchase actual shares in listed companies and hold clearly defined shareholder rights.
12. Who is the underlying broker for U.S. stocks on MEXC? Who handles custody and trade execution?
Your securities account is opened under the name of the licensed U.S. broker-dealer VistaMX Markets Limited. The clearing, settlement, and custody of your U.S. stocks are handled through its partner, Atomic Vaults Securities, LLC (AVS), and AVS's affiliated partners.
Specifically, as your introducing broker, VistaMX forwards your securities orders to its clearing partner, Atomic Vaults Securities, LLC (AVS), which is responsible for order execution, clearing, settlement, and custody.
MEXC does not directly handle or custody your securities assets.
13. What should I keep in mind when investing in stocks?
Like any other investment, U.S. stock investing involves risk. Stock prices can rise, but they can also fall. Share prices are influenced by many factors, including company performance, industry trends, macroeconomic conditions, and market sentiment. Before investing in U.S. stocks, users should take time to understand the fundamentals of the companies they are considering, including their financial condition and long-term prospects.
Reasonable asset allocation is an important part of risk management. Users should allocate capital across different asset classes based on their own risk tolerance. Cross-market diversification can help reduce concentration risk in a single market, but it cannot eliminate investment risk entirely. Users are encouraged to maintain a rational investment mindset, avoid blindly chasing market rallies or panic selling, and consult professional accounting or financial advisors before making investment decisions.
14. What launch promotions are available for RealStocks?
During the RealStocks launch period, MEXC offers several promotional activities:
1）A limited-time zero-fee campaign, allowing users to trade RealStocks without paying transaction fees during the event period.
2）A new user rewards event, where users who complete their first RealStocks trade or meet holding requirements may receive RealStocks cash card rewards.
3）A lucky draw event, where users who complete designated tasks may have a chance to receive stock rewards.
Users are encouraged to follow MEXC's official announcements for the latest campaign details, participation requirements, and event rules, so they can make full use of these offers and start their RealStocks investing journey at a lower cost.
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Disclaimer:
The information provided herein is for informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. MEXC is not a registered investment advisor or broker-dealer. All investment strategies and investments involve risk of loss. Any content contained herein should not be relied upon as advice or construed as providing recommendations of any kind. Always conduct your own research and consult with a licensed financial professional before making any investment decisions.
By participating in these investment activities, you risk losing ALL OR SUBSTANTIALLY ALL OF YOUR ASSETS. Please understand and evaluate the risk of trading and assess your risk tolerance carefully before conducting any trading or investment activities.