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Article #110: Buying Stocks. But Where?

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Silly question you may say! Of course you several orders until the entire volume
buy stocks via your broker or online ordered is purchased. This is what
using your brokerage account. happened to one of my orders a few years
But ago. And every order is charged with a
Its not necessarily that easy if you want commission. Considering the extra charges
to buy foreign stocks which you shouldnt for each order at your local stock
really underestimate nor neglect. Theres exchange, it might even be cheaper if you
a whole batch of foreign stocks out there buy the stocks at a foreign stock
that make great investments but that are exchange where volume is much higher.
not available in your country, or only And thats exactly what you also do if you
with difficulty. find a good stock that you are eager to
And thats the reason for this article. get hold of, but cant buy it in your
Several of my subscribers emailed me country at all! You buy your stocks at a
saying that they were interested in a foreign exchange which in most cases will
stock but couldnt purchase it in their be the country of the stocks origin. This
country. Now why is that? will also involve higher charges because
If you want to buy Microsoft or Wall Mart you gonna have to do this via 2 brokers.
stocks for instance, you will not So lets take the Canadian Loblaw again.
experience any problems at most stock If I would like to buy this stock, Im
exchanges let alone the USA. These two gonna have to see my broker here in
stocks alone already have a trading Germany who will then buy the stocks at
volume of over 10 million + every day on the stock exchange in Toronto which will
Wall Street. Even the regional stock involve several extra commissions and
exchanges like Chicago or San Francisco charges. Because not only my broker will
etc. have a high trading volume with charge a commission but the broker in
Microsoft and Wall Mart. Buying and Canada too. So Ill end up paying 2
selling takes place within seconds. brokers who are involved in my
But although most foreign stocks are also transaction.
found on the trading floors of New York So thats simply how it works. My broker
and other international exchanges, there will contact a broker in Canada who will
are exceptions. Like the Canadian company then make the purchase for me. And apart
Loblaw for example. You wont see Loblaw from extra charges involved it will also
stocks anywhere in Frankfurt, which is take longer before the transaction goes
the largest stock exchange in Germany. through.
Theres only a bit of volume at the But these extra commissions shouldnt be
regional stock exchange in Berlin. On overrated. If you find a great and solid
average about 17 stocks per day. And stock that you really want, then go for
thats nothing! it and because if youre an investor and
The same is true for other big exchanges not a trader, you are probably
too! You will not find every single stock contemplating a long-term investment
in New York, London, Frankfurt, Sydney or anyway. And in the long run, commissions
Hong Kong. It simply has to do with and other charges are negligible anyway.
supply and demand. If theres hardly any At the end of the day its only important
demand for a stock in XYZ country for which stocks you buy and not the place
whatever reason you wont have the where you buy them!
necessary supply. So either the stock is Yours in Successful Trading
not available in your country at all, or Ricky Schmidt
only at very low volumes. Ricky Schmidt's website was created out
The difficulty with very low trading of frustration intrying to decode books,
volumes is, that if you dont only want to magazines and newsletters on the subject,
buy say 10 or 20 stocks, but maybe 500 or which are supposed tobe for beginners but
even 1000, this volume will be difficult are not because theyre too difficult to
to get and may take several hours or even understand. Too many Big
days. Words and too much intelligent sounding
What can also happen then is, that your grammar is used which is not very useful.
order will automatically be split up into






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