Enter the complicated world of brokery


Buying Stocks. But Where?

Silly question you may say! Of courseto buy say 10 or 20 stocks, but maybe
you buy stocks via your broker or online500 or even 1000, this volume will be
using your brokerage account.difficult to get and may take several
But ...hours or even days.
It's not necessarily that easy if youWhat can also happen then is, that your
want to buy foreign stocks which youorder will automatically be split up
shouldn't really underestimate norinto several orders until the entire
neglect. There's a whole batch ofvolume ordered is purchased. This is
foreign stocks out there that make greatwhat happened to one of my orders a few
investments but that are not availableyears ago. And every order is charged
in your country, or only withwith a commission. Considering the extra
difficulty.charges for each order at your local
And that's the reason for this article.stock exchange, it might even be cheaper
Several of my subscribers emailed meif you buy the stocks at a foreign stock
saying that they were interested in aexchange where volume is much higher.
stock but couldn't purchase it in theirAnd that's exactly what you also do if
country. Now why is that?you find a good stock that you are eager
If you want to buy Microsoft or Wallto get hold of, but can't buy it in your
Mart stocks for instance, you will notcountry at all! You buy your stocks at a
experience any problems at most stockforeign exchange which in most cases
exchanges let alone the USA. These twowill be the country of the stocks
stocks alone already have a tradingorigin. This will also involve higher
volume of over 10 million + every daycharges because you gonna have to do
on Wall Street. Even the regional stockthis via 2 brokers.
exchanges like Chicago or San FranciscoSo let's take the Canadian Loblaw again.
etc. have a high trading volume withIf I would like to buy this stock, I'm
Microsoft and Wall Mart. Buying andgonna have to see my broker here in
selling takes place within seconds.Germany who will then buy the stocks at
But although most foreign stocks arethe stock exchange in Toronto which will
also found on the trading floors of Newinvolve several extra commissions and
York and other international exchanges,charges. Because not only my broker will
there are exceptions. Like the Canadiancharge a commission but the broker in
company Loblaw for example. You won'tCanada too. So I'll end up paying 2
see Loblaw stocks anywhere in Frankfurt,brokers who are involved in my
which is the largest stock exchange intransaction.
Germany. There's only a bit of volume atSo that's simply how it works. My broker
the regional stock exchange in Berlin.will contact a broker in Canada who will
On average about 17 stocks per day. Andthen make the purchase for me. And apart
that's nothing!from extra charges involved it will also
The same is true for other big exchangestake longer before the transaction goes
too! You will not find every singlethrough.
stock in New York, London, Frankfurt,But these extra commissions shouldn't be
Sydney or Hong Kong. It simply has to dooverrated. If you find a great and solid
with supply and demand. If there'sstock that you really want, then go for
hardly any demand for a stock in XYZit and because if you're an investor and
country - for whatever reason - younot a trader, you are probably
won't have the necessary supply. Socontemplating a long-term investment
either the stock is not available inanyway. And in the long run, commissions
your country at all, or only at very lowand other charges are negligible anyway.
volumes.At the end of the day it's only
The difficulty with very low tradingimportant which stocks you buy and not
volumes is, that if you don't only wantthe place where you buy them!



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