How to Invest in the Stock Market in the U.K.

Investors are looking to the UK for diversification.

US investors are seeking more ways to diversify investment portfolios. One option many examine is diversifying securities portfolios with international investments in international markets. The UK is a popular destination having some of the most successful growth markets in the past decade with the AIM Index series averaging more than 27 percent in a five-year period starting in 2004. Investing in the UK market requires having a brokerage account set up to accomplish global trading.

Instructions

1. Contact your existing brokerage firm and ask whether they allow global trading. If they do, ask what countries they are able to trade in. Make sure that the UK is a designated global destination.

2. Contact a brokerage firm that does allow global trading if your existing firm does not. There are many first that do this, perhaps as part of specialized services. Online discount firms such as E*Trade and Charles Schwab both offer global trading services in the UK.

3. Confirm the additional fees for maintaining a global trading account. Also request a fee schedule for trades and transactions. Be sure you understand how you will be charged in the account.

4. Open the account and fund it. Remember that your purchases will be reflected in Euros, not Dollars. Make sure you do the conversion rate to make sure you properly fund the account and are prepared to buy securities.

5. Review the UK stock market investments you are interested in. Once you are set up for trading, you can buy UK stocks, bonds or mutual funds. You can even partipate in the UK market Index funds such as the London Stock Exchange's AIM Index series or the Main Market series.

6. Place your order to buy.

Tips & Warnings

• Remember that you are in a different time zone as the market you are trading on. For real time news and trades you will need to adjust your research and trading periods to reflect Greenwich Mean Time (GMT).

References

• London Stock Exchange: Main Markets
• London Stock Exhcange: AIM

Resources

• Time and Date: GMT
• X-Rates: Currency Calculator
• E*Trade: Global Trading
• Charles Schwab: Global Investing Services