How to buy foreign shares? Buying foreign shares is the need of many investors. Nowadays, the purchase of foreign shares is carried out relatively quickly. You can open a stock account and trade CFD shares every day or invest in long-term holdings of favorite stores such as Facebook, Google, Amazon, Apple, Netflix…
If you buy stocks for day trading, using leverage, you can open accounts with many forex brokers that allow stock CFD trading.
However, this article shows you how to buy foreign shares to hold long-term without overnight fees.
Some features when buying shares.
Simple procedure to open an account to buy shares online
Currently, you can easily buy foreign shares with the quick and convenient online account opening procedure. To open an account, you need to choose a reliable international broker, and then enter 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 to open a foreign stock trading account. Account verification usually requires two types of documents as follows:
Identity verification documents: photo of the identity card or identification of the citizen or passport booklet.
Proof of address: Photos of electricity, water, internet bills … in the last six months or driver’s license.
In addition, some brokers may ask you to fill out the 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 also many brokers that do not require a minimum capital.
In addition, most foreign stock trading platforms provide virtual accounts, with some free virtual investment money to learn how to invest and familiarize yourself with the platform.
Offers high leverage
The foreign stock market allows you to use leverage up to a few tens or a few hundred times, depending on the type of asset.
Using leverage when trading can offer you significant profit opportunities, but it also carries a lot of risks. Therefore, if you are a new trader, you should not abuse the use of high leverage.
Is there a fee to buy shares?
Currently, international online stockbrokers are all competing in terms of trading fees. Therefore, transaction fees are usually relatively low, insignificant. You may need to pay a lot of commissions when investing in foreign securities, including the spread of the difference between the buy and sell prices; Swap fees when leveraging or selling short…
In particular, there are currently two commission-free brokers for unleveraged stock purchases: eToro and Capital.com. This allows you to buy and hold long-term shares on these platforms.
How to buy foreign shares?
To buy foreign shares, you need to take the following measures:
Step 1: Choose a reliable broker
A reputable broker will be licensed and regulated by the world’s leading financial institutions. When an international exchange is closely monitored, investor safety is protected by strict policies.
See also: Prestigious financial sector regulatory agencies in the world
Step 2: Open an account to buy foreign shares
After choosing a reliable and suitable broker, 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 exempt from commissions on unleveraged stock purchases. In particular, these two trading platforms are quite 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 compliant 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).
Step 3: Deposit to your account
In foreign stockbrokers, your deposit to your account comes from the platform’s user interface. Log in to the account opened in step 2, find the deposit area and follow the step-by-step instructions.
Step 4: Trade stocks on the platform
After depositing money into your account, choose your favorite stocks and start trading.
There are two types of orders in the international stock market: buy expenses when you expect the price to rise, and sell orders when you expect prices to fall. Once you make a profit, close the open trade.
To buy foreign shares on eToro, select the stock code, click the Trade button, select the Buy tab, then enter the transaction information as shown in the window below and click [Open Trade]:
To Capital.com, to place a stock purchase order, choose the stock code, select Buy, enter your 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 up stop-loss and take-profit orders with open trades is also very convenient.
Above is a guide on how to buy foreign shares on two exchanges, eToro and Capital.com. Generally, these are two brokers that allow for easy-to-use and commission-free international stock trading with leverageless 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.