April 14, 2008

How do I purchase shares of a specific foreign stock online when Ameritrade doesn't have them available? (I'm not looking for foreign mutual funds).

Is this difficult to do? And why is it so hard for Ameritrade to offer foreign stocks? Isn't all this stuff done electronically?

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April 16, 2008

Posted by knor208

5 stars ( 1 rating )

If you want to buy foriegn stocks you have to go to a market that offers them. the NYSE for example only trades in Company stocks that are located in the US. They do offer a form of stock in some foriegn companies but it actually just a depository reciept which is not a stock. remember a share of stock is ownership in a Company, so to buy stock in a foreign Company you have to go to the Country where the Company is located and has its stock listed. You then have the problem of currency exchange so it is not quite as easy as it first appears. You would have to actually open an account with a brokerage company that has the ability to buy or sell a stock in that particular exchange So some of the US brokerages companies that offer tradingon forieng exchanges often have a minimum net worth requirement to oepn an account. someone is advertising the ability to trade in foreign exhanges on TV but I cant remember who. I know it is a discount broker though. However you should be very careful..

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Gorillapaws: thanks for the reply. I was hoping to get stock in Australian natural gas companies to capitolize on the relative global stability of their currency, a likely increase in demand for natural gas, and the fact that Australia is one of the US's biggest suppliers of natural gas in a medium term type investment. From your response though it songs like I don't have the kinds of funds needed to make a trade like that (10's of thousands probably right?).

April 22, 2008

Posted by knor208

0 stars ( 0 ratings )

Gorillapawa your right however you can check to see if some of the Australians Companies offer American depository reciepts or ADR.ADR's trade on the NYSE just like a stock and I know some Aussie banks do it.ADRs are just like stocks but are a way to legally get around the foriegn company problem. You also avoid the currency problem since they trade in US funds, although thye are starting to offer some in Euros. Look up depository reciept on the internet and you should be able to find a good explanantion. They are offerred through large banks so that is where you may find the explanantion. You have probably seen them and did not know they werent a stock.

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How do I purchase shares of a specific foreign stock online when Ameritrade doesn't have them available? (I'm not looking for foreign mutual funds).

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