Buy stock, but where?

The stupid question you might say! Of course, you buy stocks through your broker or online using your brokerage account.

If you want to buy foreign stocks, you should not really underestimate or ignore them. There are a large number of foreign stocks that make huge investments there, but are not available in your country, or just have difficulty.

This is the reason for this article. Several of my subscribers have e-mailed me that they are interested in stocks but can not buy them in their country. Now why?

If you want to buy Microsoft or Waltz stock, you will not encounter any problems on most stock exchanges, let alone the United States. The two stocks on Wall Street have more than 10 million daily trading volume. Even the regional exchanges like Chicago or San Francisco, Microsoft and Wal-Mart's trading volume is also high. Buying and selling takes place in seconds.

However, while most foreign stocks also exist on the New York and other international exchanges, there are exceptions. Such as the Canadian company Loblaw. You will not see Loblaw stock anywhere in Frankfurt, the largest stock exchange in Germany. There are only a handful of regional stock exchanges in Berlin. With an average of 17 stocks a day. nothing much!

Other big exchanges too! You will not find all the stocks in New York, London, Frankfurt, Sydney or Hong Kong. It is only related to supply and demand. If there is little demand for stock in XYZ countries – for whatever reason – you will not have the necessary supplies. So, this stock is not available in your country, or just at a very low volume.

The difficulty of very low volume trading is that if you want to buy not only say 10 or 20 shares, but maybe 500 or even 1000, this volume will be hard to get and it may take several hours or even day.

It is also possible that your order will be automatically split into several orders until the entire purchase order is purchased. This is what happened to my order a few years ago. Each order is charged a commission. Considering the extra cost per order on your local stock exchange, you may even be cheaper if you buy more stocks on the Forex Stock Exchange.

If you find a good stock, you are eager to get control, but you can not buy it in your country! You buy your stock in Forex, and in most cases will be the country where the stock originated. This will also involve a higher fee because you have to do this through 2 brokers.

So let's pick up the Canadian bar again. If I wanted to buy the stock, I had to see my broker in Germany and then they would buy the stock on the Toronto Stock Exchange, which would involve several additional commissions and fees. Because not only my broker will charge a commission, but also a broker in Canada. So I end up paying two brokers to participate in my deal.

So this is how it works. My agent will contact a Canadian agent and he will buy it for me. In addition to the additional costs involved, the transaction takes longer before it is passed.

But these extra commissions should not be overestimated. If you find a great, solid stock that you really want, then go for it, because if you are an investor, not a trader, you may be considering a long-term investment. In the long run, commissions and other expenses are negligible.

At the end of the day, it only matters which stocks you buy, not where you buy them!

Your Successful Transaction

Ricky Schmidt