How to Invest in Aim Stocks

The London Stock Exchange is home to AIM stocks.

More investors are looking for ways to diversify investments. One such method is to seek diversification in international investments. AIM offers international and growth stocks on the London Stock Exchange, mixing well established, large companies with smaller ventures. AIM was launched in 1995, working with more than 3,000 companies in this period as one of the most successful growth markets in the world. If you are looking to invest in an AIM index or individual securities, you need a brokerage firm that allows you to conduct international transactions.

Instructions

1. Find a brokerage firm that allows international investments on the London Stock Exchange. Check with your existing broker or inquire at online resources such as E*Trade or Schwab about fees associated with trading AIM stocks.

2. Open your brokerage account and fund it with at least the minimum investment requirements. Each brokerage firm has different requirements.

3. Research the investments you want to buy on the AIM market. Remember that you can purchase individual equities or you can purchase the AIM index products. There are three indices you can purchase including the All Share AIM, the AIM 100 or AIM UK 50. The AIM 100 holds the top 100 equities while the AIM UK 50 holds the top 50 UK holdings.

4. Review the terms of the investment with your brokerage firm including exchange rates, minimum purchases and commission fees.

5. Place the order to buy.

Tips & Warnings

• Trades on international investments are subject to exchange risk and are traded in the currency of the exchange they trade on, in this case London.

• Remember that international markets are in a different time zone, thus you may not be able to get real time information unless you are following items online at non-traditional hours.

References

• London Stock Exchange: AIM
• Hemscott: Index Prices

Resources

• E*Trade: Global Stock Trading Account
• Schwab: Global Investing Services