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