How to Buy Overseas Stocks
There are ways that you must apply when you want to buy these foreign stocks. You can apply these methods through any smartphone application or broker. Of course, know in advance the license of the application or broker. How to buy these foreign stocks is: Buying international stocks turns out to be very easy. You may even be able to do so through an existing brokerage account. Here's how:- Buy individual shares directly on international exchanges. However, to do this, your brokerage account must give you access to these exchanges—and not all brokers do. If yours is yours, you can simply buy stocks using US dollars, just like any other investment. If yours doesn't, then you should...
- Access international stocks through American Depository Receipts (ADRs). An ADR is a certificate issued by a U.S.-based financial institution that represents a portion of a foreign company's shares. They are traded like domestic stocks on US-based exchanges, meaning you don't need a dedicated brokerage account to access them.
- Invest internationally through ETFs and/or mutual funds. You can use the screening tools in your online broker to research and identify various ETFs and mutual funds that consist of international holdings. It is the easiest tool for beginner investors to add international exposure to their portfolios because it does not involve stock selection, generally has low fees and is easy to trade daily through a normal investment account.
Top Overseas Stocks to Buy
There are several foreign stocks that are most in demand by investors and you can own. The list of foreign stocks is:1. JD.com
China accounts for about half of global e-commerce spending, and its online retail market looks poised for substantial long-term growth. JD.com (NASDAQ:JD) is the second-largest online retailer in China, after Alibaba (NYSE:BABA), the country's largest business-to-consumer seller. It is also a business that is quite different from its competitors, thanks to its focus on high-quality products and unparalleled fulfillment infrastructure.
2. CD Projekt
Based in Poland, CD Projekt ( OTC:OTGL. Y) has established itself as a strong player in the video-game industry. The company is best known for properties including The Witcher and Cyberpunk 2077, but it also operates an online marketplace and sharing platform for distributing games digitally. The demand for interactive entertainment is still poised for huge growth in the long term, and CD Projekt has an exciting opportunity as it releases content expansions for existing titles, launches new properties, and capitalizes on emerging trends including augmented reality and the metaverse.
3. StoneCo
Brazil-based payment processing company StoneCo (NASDAQ:STNE) is benefiting from the switch from physical money to digital payments -- or, as it's sometimes called, the "war on cash." Brazil's population of around 215 million gives StoneCo a large base of potential users, and the company has the opportunity to expand its services elsewhere in Latin America and South America as the digital payments market grows.
4. Shoprite Holdings
Africa is on track to account for more than half of global population growth by 2050, according to the United Nations, and Shoprite Holdings '(OTC:SRGH) status. Y ) as the largest grocery store chain on the continent is positioning it to benefit from economic and demographic barriers. . The company is headquartered in South Africa and operates approximately 2,900 locations in 15 countries.
5. HDFC Bank
India's largest private sector lender, HDFC Bank (NYSE:HDB), is in a favorable position to profit as the country's economy continues to grow. The company has more than 5,700 branches in more than 2,900 cities and towns. HDFC is also a player in the digital payments space and seems poised to take advantage of the cash wars.
Securities to Buy Overseas Stocks
The way to buy foreign stocks cannot be through Indonesian securities. You have to buy it through international securities. There are four securities companies that are commonly used to buy foreign stocks that are quite popular among investors, these securities are:Mutual funds
One can invest in international markets by investing in international MF schemes in the form of fund funds or ETFs that invest in international funds that have exposure to international markets. The ticket size to invest in MF is very low and does not require a foreign trading account.Indonesian brokerage's association with international brokers
Many Indonesian brokerage houses have ties with international brokers with respect to foreign investments. Check with existing brokers if they offer such services.Broker
International Some international brokerage firms allow Indians to open accounts with them and invest in foreign securities. These companies also provide their research and analytical support to their clients to help them make investment decisions.Platform
Many online platforms offer opportunities for investment in foreign securities by using a portfolio or recommended theme.Advantages of Buying Overseas Stocks
Not only in the domestic market, the foreign market also has great profits if you invest your money in the shares of the foreign company. There are advantages that you can get when you want to buy foreign stocks. These advantages are:1. Diversification
In general, when we talk about diversification, we usually refer to investments in different industries and MCAPs. But by investing in overseas markets, we can receive the same diversification benefits even if the companies we include in our portfolio already exist in the same industry or MCAP. The main purpose of diversification is to protect the portfolio. By investing abroad, the portfolio is protected from domestic risks that may affect the domestic market as a whole.2. Market rebound rate
We previously mentioned that Indian investors prefer to invest in Indian securities because they provide a better growth rate. Markets around the world sometimes experience crises at the same time. Rarely like this, this should have happened twice after 2000. Putting the growth rate aside, let's try and pay attention to the post-crisis market performance. The recession of 2008 saw economies stagnant around the world. Although it was first triggered by problems in the US, the Indian economy also suffered a meltdown. The Indian market has seen a decline of 55% compared to the height reached at the end of 2007. It can be seen that in the period from December 2007 to December 2013 the Indian market only rose by 4.3% after the rebound. Let's compare this to the US market. During the recession, the US market fell by about 50%. But during the same period from December 2007 to December 2013, the U.S. market delivered a return of nearly 50% after rebounding to previous levels. Let's take the second example where we have seen markets around the world contract. This is because of the pandemic that we are still experiencing. If we look at the US market since its peak in February, we can see that the market fell 30% in March but has rebounded and touched new heights to get a 15% return. The Indian market, on the other hand, saw a decline of more than 35% and still has not reached its previous levels.3. Exposure
Another additional advantage of investing in foreign markets is the exposure that the investor will receive in terms of the securities available to him. Let's go back in time to the early 2000s and observe the options available to Indian investors when it comes to technology-based securities. They are limited to TCS, Infosys, and Wipro. On the other hand, the overseas market provides the likes of Apple. Microsoft, Google. Sometimes even legal jurisdictions prohibit certain companies from operating in a country. Investors, however, have the option of only investing abroad. After knowing about how to buy foreign stocks, make sure also before buying stocks on a broker or investment application, to see the license of the broker and application. Whether they already have an official permit or not. This the discussion from GICTrade regarding the explanation of "How to Buy Foreign Stocks for Beginners". You can also find out other information about commodities, forex, and other finances, such as "Ponzi Schemes, Scams Under the Guise of High-Profit Investments" only in the GIC Journal. Also make sure you register yourself to be able to trade gold, forex, crypto, and NFT at GIC.