Enter the complicated world of brokery


Buying Stocks. But Where?

Silly question you may say! Of course you buyor 20 stocks, but maybe 500 or even 1000,
stocks via your broker or online using yourthis 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 toorders until the entire volume ordered is
buy foreign stocks which you shouldn't reallypurchased. This is what happened to one of my
underestimate nor neglect. There's a wholeorders a few years ago. And every order is
batch of foreign stocks out there that makecharged with a commission. Considering the
great investments but that are not availableextra 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 butAnd that's exactly what you also do if you
couldn't purchase it in their country. Nowfind 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 Martexchange which in most cases will be the
stocks for instance, you will not experiencecountry of the stocks origin. This will also
any problems at most stock exchanges letinvolve higher charges because you gonna have
alone the USA. These two stocks alone alreadyto  do  this  via  2  brokers.
have a trading volume of over 10 million +
every day on Wall Street. Even the regionalSo let's take the Canadian Loblaw again. If I
stock exchanges like Chicago or San Franciscowould like to buy this stock, I'm gonna have
etc. have a high trading volume withto see my broker here in Germany who will
Microsoft and Wall Mart. Buying and sellingthen 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 alsobroker will charge a commission but the
found on the trading floors of New York andbroker in Canada too. So I'll end up paying 2
other international exchanges, there arebrokers  who  are involved in my transaction.
exceptions. Like the Canadian company Loblaw
for example. You won't see Loblaw stocksSo that's simply how it works. My broker will
anywhere in Frankfurt, which is the largestcontact a broker in Canada who will then make
stock exchange in Germany. There's only a bitthe purchase for me. And apart from extra
of volume at the regional stock exchange incharges 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 Newstock 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 inlong-term investment anyway. And in the long
XYZ country - for whatever reason - you won'trun, commissions and other charges are
have the necessary supply. So either thenegligible  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 volumesyou buy them!
is, that if you don't only want to buy say 10



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