How to Invest in FTSE
When it comes to investing, it is a good idea to diversify and not put all your eggs into one basket. One way to spread the risk of investing is to invest outside of the United States. Investing a portion of your stock market money into the FTSE (Financial Times Stock Exchange) index allows you to participate in the growth of stocks around the world, without relying on a single country for the growth of your nest egg.
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Instructions
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Open an account with a brokerage firm if you do not already have one. Choose a low cost broker, such as TD Ameritrade, E*Trade or Scottrade. These online brokers all charge less than $10 a trade.
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Verify that you have sufficient money in the cash account with your brokerage. Transfer money from your bank account or send a check if you need to add more money. Log into your account to make sure the money you sent has been transferred to your account. It can take a few days for this to happen.
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Log onto your brokerage account and go to the trading menu. Type in the ticker symbol VEU to buy the exchange traded fund that tracks the FTSE index. Exchange traded funds are similar to mutual funds in that they represent ownership of a diversified basket of stocks. But unlike mutual funds, exchange traded funds, such as the one that tracks the FTSE index, can be bought and sold in real time during the trading day.
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Print out a copy of your trade confirmation and keep it for your records. You will need this information for your taxes when you sell your stake in the FTSE.
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References
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