Online International Stock Trading

Online stock trading has become very popular in the last few years. With individuals getting more involved in self-directed investment accounts, online brokerage companies have risen to meet the increased demand. They allow anyone with an Internet connection to be able to invest in the stock market, trading both domestic and international stocks.

Significance

Trading international stock online gives investors access to the world market and allows them to own any part of the world economy. This is especially attractive to those who want to take advantage of growth stocks in emerging markets in growing economies such as in India.

Online Brokers

There are a variety of online brokerage firms that offer online trading for a nominal fee. Most charge a monthly fee and an additional amount ranging from $3 to $20 for individual trades. Some, like Sharebuilder, allow you to make monthly investments automatically for a specified number of trades with no minimum amounts for a fixed monthly fee. Some brokerages may require you to submit a special application to buy foreign stocks. One brokerage, Euro Pacific, allows you to trade in foreign stocks directly (see link in Resources below).

Types

International stocks can come as individual stocks or as part of global exchange traded funds or other in-house managed funds. Two examples are the group of ING global funds from ING and the iShares global-theme funds from Barclay's Global.

World Markets

For many beginners in international stock trading, one place to start is the different global indexes. They mirror some of the strongest stocks in those markets. Just like the Dow Industrial Average, S & P 500 and NASDAQ 100, such global indices as London's FTSE 100 and Japan's Nikkei are good places to start. For a full list of the world's major indices, see the link in Resources below.

Expert Insight

If buying individual foreign stocks in not an option or if it is too complicated for you, buying global ETFs may be the safest and easiest way to go. You can research them on domestic financial websites. These ETFs mirror a variety of global stocks. This allows you to wade into the waters of foreign stocks without bearing the risks of individual stocks. See the link in Resources below for a full discussion of global ETFs.

Resources

• Euro Pacific
• The Motley Fool on Global ETFs
• Major World Indices from Yahoo Finance