How to Invest in the British Stocks
With the world's financial system more interconnected than ever before, the entire world has become part of one global economy. Online brokerage companies have made it easier for individuals invest in any part of the world. Anyone with an Internet connection can invest in the stock market, both domestically and overseas, including in Britain.
- Difficulty:
- Moderate
Instructions
-
-
1
Figure out how much you want to invest. It is important to understand that risks are involved. It is also important to take the long-term view, understanding that your investment may not be liquid for some time.
-
2
Decide on buying individual stocks, British ETFs (exchange-traded funds) or other British indices and funds. Many beginners in overseas investing find it easier to start with the relevant indices because they mirror some of the strongest stocks in those markets. Just like the Dow Industrial Average, S & P 500 and NASDAQ 100, London's FTSE 100 could be a good place to start. See links in Resources below to major European indices and U.K. funds.
-
3
Pick on online brokerage that complements the investment route you have chosen. If you plan on investing in indices, ETFs and other funds have a larger pool of brokerages to choose from than if you want to trade in individual British stocks. 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 between $3 to $20 for individual trades. Some allow you to make monthly investments automatically for a specified number of trades for a fixed monthly fee.
-
4
Open a brokerage account that allows you to buy British stocks directly if you plan on trading in individual stocks. Some brokerages may require you to submit a special application to buy foreign stocks. Euro Pacific allows you to trade in foreign stocks directly. Find the link to Euro Pacific in the Resources section.
-
5
Link your brokerage account to your checking account, transfer the necessary funds and start investing.
-
1
