Best Broker For Trading Foreign Stocks: 10 Factors To Look

Best Broker For Trading Foreign Stocks. Smart investors & traders trading equities in international stock markets.

Right stock broker is the key to overseas investment. There are factors to look when selecting best broker for trading foreign stocks. It will help you to make the process quite simple.

A few decades ago, international stock investment was the most challenging task in share trading. It was due to the hassle of difficult process, absence of knowledge, as well as various rules, regulations and restrictions.

Today, you can legally invest or trade in almost any stock market in the world quite easily. You just need to choose the best international brokerage service provider. Your broker must be registered with the stock exchange regulator like SEC in US or SEBI in India.

If you want to invest in US stock markets then details on a US-registered broker’s or investment adviser’s background & qualification are available on SEC’s Investment Adviser Public Disclosure (IAPD) website.

Apart from these, you also need to look various other miscellaneous charges for a cost-effective investment. Here are 10 factors to consider when choosing overseas stock brokerage service:

[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]

(1) Local Stock Broker Vs International Stock Broker

It is one of the most significant factors to look when selecting best broker for trading foreign stocks. A person can invest or trade in international stocks by two ways. First option of stock investment abroad is through local stock brokers of your country with foreign exposure.

Second option of stock investment abroad is through foreign based stock brokers. These options of investment are found to have their own advantages & disadvantages.

Generally, local stock brokers are costlier as compared to foreign based stock brokers. For example, local broker with foreign exposure may charge around $13 per trade while foreign share broker may charge around $2.5 per trade.

Similarly, you may also have to perform currency exchange every time a transaction is made. It is not the case when using foreign stock broker.

On the other hand, you can contact local brokers simply by visiting their offices anytime. However, this is not the case when investing through international stock broker.

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2 Comments on Best Broker For Trading Foreign Stocks: 10 Factors To Look

  1. Vipin Chandra // May 2, 2017 at 3:59 PM // Reply

    I am an NRI working in Switzerland and would like to invest in Indian,south East Asian ex japan,US mutual funds and stocks,My NRE account is with Axis Bank in India apart from UBS salary account in Switzerland.Where to enroll for a broker so that investment continues even if I change the country of my job?Will it be possible through GIFT city and that too on low expenses and tax benifits

    • Editing Staff // May 2, 2017 at 8:08 PM // Reply

      Hi Vipin,
      Thanks for asking your valuable query from GetUpWise staff.
      Yes, you should definitely proceed to invest through INDIA INX (global exchange of India, GIFT City) to get the benefit of tax advantages. It is especially designed to attract foreign investors including NRIs. However, the process of enrolling stock brokers is still in the infant stage so only limited number of stock brokers are available for providing services. You should contact reputed banks that are providing their clearing services at GIFT City for your queries. Some of the reputed banks active at GIFT City include Axis Bank, ICICIBANK, Kotak Mahindra Bank, etc. We wish you can get prompt soluitions from them.
      Best Wishes,
      GetUpWise

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