Posted by forex at 3:44 AM
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Instructions
1. Open an online stock brokerage account that allows international stock trading. Fidelity and E-Trade are two brokers that offer foreign-shares trading. Fidelity allows international trading for a customer who makes more than 125 trades per year or has $1 million in assets. E-Trade allows the addition of global trading to clients with a Complete Investment Account.
2. Research the foreign stocks you would like to buy. E-Trade allows online stock trading in six foreign markets: the United Kingdom, Germany, France, Hong Kong, Japan and Canada. Fidelity offers access to those markets plus six others: Australia, Belgium, Italy, the Netherlands, Norway and Portugal.
3. Buy the foreign stocks that meet your investment criteria. The online trading system for the broker will convert your U.S. dollars to local currency and buy the shares for your account. When you sell shares, you can leave the money in the foreign currency or convert back to dollars.
4. Research foreign companies that trade on U.S. exchanges through American Depositary Receipts, or ADRs. An ADR is a certificate that represents foreign company shares held in trust in a U.S. bank. J.P. Morgan's adr.com website allows stock search by region, country and sector.
5. Buy your selected ADR shares through your online broker. ADR shares trade exactly the same as U.S. company shares. The combination of access to foreign stock markets and ADRs provides a broad opportunity for international stock purchases.