How to Trade Foreign Stocks

If you've heard of foreign stocks is a good investment tool, you would be correct. For the right person is not only worth investing in foreign stocks, but an opportunity to make money, not many people know.

Most people think that because they live in the United States, they are trading company in the United States. Incorrect.

We have now found the one that looks like a good investment company whose shares. There's just twists and turns: The company is headquartered in Japan, Italy, or some other countries. However, this could be a problem, many foreign companies traded on the New York Stock Exchange American Depositary Receipts, or ADRs form.

The ADR is a certificate issued by a U.S. bank, a few stocks - usually no more than five - a foreign company's stock. Bank as depositary shares, eliminating the need to buy foreign stocks many complications. For example, you do not € ™ t have to deal with currency conversion dollars to American Depositary Receipts (ADR) trading.

Step 1

A full-service or discount broker to open an account. You can often do this online. We now need to provide your Social Security number and employment information. For certain types of accounts, you must include your income and assets declarations. Is prepared to make an initial deposit of 1,000 yuan. There are some online brokers, like ING DIRECT ShareBuilder.com, allows you to open an account with low or no minimum investment.

Step 2

Look for a foreign company ADRs on the New York Stock Exchange (see Resources) provides a list of online directories. This directory lists all ADRs are traded on the New York Stock Exchange. You can press the regions and countries. This directory lists the stock symbol, the latest price, daily trading volume.

Step 3

Go online brokerage account, or call your broker. Place an order to buy foreign stocks ADRs quantity that you want in the company, you have chosen. Once your order is executed, the agent will credit your account to ADRs.

Not all American depositary receipts of foreign companies traded on the New York Stock Exchange. Many OTC or over-the-counter or on the Nasdaq. You can find these listed ADRs ADRs issued the bank's website. Two examples are the JP Morgan Chase and Bank of New York Mellon. ADR also make their lists available online.