There are many ways to invest internationally. An M-Akiba bond for Kenya, a P-note for India or a Sukuk, which is an Islamic bond. Some markets have specialized securities but general investment products, such as stocks, corporate bonds, government bonds, mutual funds, exchange traded funds, options, futures and commodities can be purchased and traded globally.
To trade in a foreign market or on a foreign exchange, you will often need to find a local broker, investment advisor or an online trading platform that is authorized to trade on that exchange. With a local broker or investment advisor, you get more direct support, hands on service and advice but with an online platform, you won't need to worry about language challenges and you may also have lower transaction costs.
It is also important to note that not all brokers or trading options work the same way in a given country. Some may offer different services or charge different transaction costs so always perform your due diligence. In addition, to trade stocks, bonds, exchange traded funds (ETF), mutual funds and options, it is best to focus on a stock broker or an investment advisor. For commodity futures and options, you will want to work with a commodity broker.
Other options that allow you to invest internationally include American Depository Receipts (ADR), Global Depository Receipts (GDR), Exchange Traded Funds (ETF) or global Mutual Funds. As you can see, you have many ways to invest in foreign markets.
GlobEx Markets will show you the global trading options in each country and help you to identify broker options so that you can successfully invest internationally.
Finding a good broker is like finding a good doctor. You need to spend the time to see if you like them and that you trust them.
Take the time to communicate with a few brokers before you make a decision on who to work with. Stock brokers, investment advisors and commodity brokers are located on all continents, except Antarctica, and they are spread throughout all regions.
You will find brokers, advisors and trading platforms that you can contact in each of these regions so do your due diligence upfront.
When choosing a broker, you first need to determine what securities or products that you expect to trade, the level of services that you need and what exchange or exchanges that you are interested in.
It is important to understand your trading style so that you can select a broker who can offer the services that you need most. Factors to consider when selecting a broker include reputation, product expertise, market expertise, ability to provide investment research, financial tools offered, local fees, commissions and total transaction costs.
Investors also need to be wary that there are unscrupulous brokers everywhere. It is important to take the time to make sure a broker or advisor is registered with the market regulator in their home country.
You have many options for trading foreign securities but knowledge and due diligence are the keys to success. In addition to finding a broker, advisor or trading platform, it is important to choose the right one.
With GlobEx Markets tools, you will be able to find a trading option to assist you with your securities transaction.