How to buy foreign stocks step by step instructions?
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How to buy foreign stocks? Buying foreign stocks is the need of many investors. Nowadays, buying foreign stocks is done relatively quickly. You can open a stock account and trade CFD shares daily or invest in long-term holdings of favorite stores such as Facebook, Google, Amazon, Apple, Netflix…
If you buy shares for day trading, using leverage, you can open accounts at many forex brokers that allow trading of stock CFDs.
However, this article shows you how to buy foreign stocks to hold for the long term with no overnight fees.
Some characteristics when buying stocks.
Simple procedure to open an account to buy shares online
Currently, you can easily purchase foreign stocks with the quick and convenient online account opening procedure. To open an account, you need to choose a reputable international broker, then fill in some basic information such as email, phone number, account name, and password.
You will then need to upload your identity verification or address verification documents to complete your application for opening a foreign stock trading account. Account verification usually requires two types of documents as follows:
Identity verification documents: Photo of ID card or citizen identification or passport book.
Proof of address: Photo of electricity, water, internet bills… in the last six months or driver’s license.
In addition, some brokers may ask you to fill out required forms such as w-8ben…
Small investment capital
International securities companies usually require a relatively small minimum investment capital, only about $ 5-200 or more. There are even many brokers that do not require minimum capital.
In addition, most foreign stock trading platforms provide virtual accounts, with some free virtual investment money for you to learn to invest and get acquainted with the platform.
Offers high leverage
The foreign stock market allows you to use leverage up to a few dozen or a few hundred times, depending on the type of asset.
The use of leverage when trading can bring you significant profit opportunities but also carries many risks. Therefore, if you are a new trader, you should not abuse the use of high leverage.
Is there a fee to buy stocks?
Currently, international online stockbrokers are all competing in terms of trading fees. Therefore, the transaction fees are usually relatively low, insignificant. You may have to pay many fees when investing in foreign securities, including the spread of the difference between the buying and selling prices; Swap fees when you leverage or sell short…
In particular, there are currently two commission-free brokers for non-leveraged stock purchases: eToro and Capital.com. This makes it possible to buy and hold stocks for the long term on these platforms.
How to buy foreign stocks?
To buy foreign shares, you need to take the following steps:
Step 1: Choose a reputable broker
A reputable broker will be licensed and regulated by major financial institutions in the world. When an international stock exchange is closely monitored, investors’ safety is protected by strict policies.
See also: Prestigious financial industry regulatory agencies in the world
Step 2: Open an account to buy foreign stocks
After choosing a reputable and suitable broker, you open an account to buy shares online. This article will guide you to open a stock account on Capital.com and eToro brokers. These are two brokers that are regulated by many reputable agencies and are commission-free on unlevered stock purchases. In particular, these two trading platforms are pretty friendly and easy to use, suitable for new investors.
eToro is a stockbroker regulated by the Cyprus Securities and Exchange Authority (CySEC), the UK Financial Conduct Authority (FCA), and complying with the Financial Markets Directive (MiFID).
Meanwhile, Capital.com is regulated by agencies including FCA – UK Financial Industry Regulatory Authority; CySec – Cyprus Securities and Exchange Commission; ASIC – Australian Securities and Investment Commission; and National Bank – National Bank of Belarus (NBRB).
* See more: The complete guide Capital.com from a to z
* See more: The complete guide Capital.com from a to z
- See also: Reviews Capital.com.
Step 3: Deposit to your account
In foreign stockbrokers, your deposit to your account is from within the user interface of the platform. You log in to the account opened in step 2, find the deposit area, and follow the instructions step by step.
Step 4: Trade shares on the platform
After depositing money into your account, you choose your favorite stocks and start trading.
There are two types of orders in the international stock market: Buy charges when you expect the price to rise and sell orders when you expect prices to fall. Once you have made a profit, you close the open trade.
To buy foreign shares on eToro, select the stock code, click the Trade button, select the Buy tab, then fill in the transaction information as shown in the window below and click [Open Trade]:
For Capital.com, to place an order to buy shares, you choose the stock code, select Buy, fill in the transaction information and press the Buy button.
In addition, you can also place pending buy and sell orders. When the price reaches the expected price, the trade is automatically opened. Setting stop-loss and take-profit orders with open trades are also very convenient.
Above is a guide on how to buy foreign stocks on two exchanges, eToro, and Capital.com. Generally, these are two brokers that allow international stock trading that is easy to use and commission-free with non-leveraged buy orders and receive dividends. Therefore, you can invest in securities on both exchanges. If you are not used to using international e-wallets, Capital.com will be more convenient for you.