How to Invest in Britain's Stock Market
The U.S. stock markets are not the only markets with growth potential or a proven record of long-term success. Some investors read about a booming foreign economy or strong currency and wonder how they can get in on that action. The British stock market is among the most friendly to the foreign, individual investor, making it an attractive option.
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Instructions
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Choose a broker that works with the London Stock Exchange. This is Britain's principle stock exchange, so all the best British companies will be listed there. A smart investor will draw up a list of potential brokers, investigate all the options and reviews, and only then make a decision. Some brokers, for example, charge fees for inactivity, which make them unsuitable for a buy-and-hold investment strategy.
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Check the terms of your home bank offers for international wire transfers, and then compare them. You will need to send money to your account in Britain, and sometimes have money sent back to you. If your bank's fees for this look likely to eat up a big chunk of your potential profits, you need to either switch banks or open a new account for investment purposes.
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Open a Share Dealing Account with your chosen broker. Opening the account is usually free.
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Start trading. Trades can be made either by Internet or over the phone with almost all brokers. The typical policy in 2009 is to charge a flat commission of between £8 and £12 per trade, regardless of size.
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- Photo Credit Wikimedia Commons
