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How to Buy Shares on Foreign Markets

Posted by at 6:39 AM Read our previous post

1. Contact your U.S. broker to find out if it is able to buy the shares you wish to purchase on a foreign market. Keep in mind that, with currency fluctuations and time differences, you may not be able to purchase or sell shares at your price. Trading rules and technologies differ in foreign exchanges and your broker will charge you a higher commission for these trades.
2. Open a brokerage account in the country where you want to make trades. Be fluent in the foreign language or use a broker fluent in English. You will have to wire money, exchange currency, and be subject to administration costs and foreign investment laws. Regulations may restrict or tax you when you want to return your investment to the U.S.
3. Choose an online broker with global trading opportunities. E-Trade facilitates trade with Canada, France, Germany, Hong Kong, Japan, and the United Kingdom. Noble Trading and Interactive Brokers also make online trades in foreign markets.

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