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