Why should you invest in foreign stock?
There are more than 5,500 listed companies which are registered in the Indian Stock Market. Out of the many, Google, Apple, Facebook, Amazon, Samsung, Cisco, Tesla and others are the supergiant companies that can be the best stable investment one can make. These companies have a lot of investment, credit, highly qualified professionals and a logical management staff which gives it a top notch signalling when it comes to Indians indulging into Foreign Stock Market.
Cons of investing in Foreign Stocks
1. Be ready for high charges: Most of the investment in international stocks doesn’t take place in the domestic currency, but the foreign one. This is why the shock brokerages are higher compared to the Indian based companies.
2. Profits are subject to the change of currency rate: When an individual invests in Foreign Stocks, they should be all set to preview changes in relation to the currency rate of the stocks. If at one point of time, the price can be moderate, on the other it may hike skyrocket.
How to invest in foreign stocks?
1. First move will be to find a proper brokerage firm which has a tie up with a foreign broker. Indian brokers like ICICI Direct, HDFC Securities, Kotak Sec, Axis Securities, Reliance money, etc share a tie-up relationship with the foreign brokers.
2. You can also open your own account with foreign brokers. A number of international foreign brokerage firms like Interactive Brokers, TD Ameritrade, Charles Schwab International Account let Indian investors to set up an account and trade in US Money Market, Mutual Funds and other handy stocks.
These are some of the easy methods through which an Indian can easily plan for Foreign Stock Investment. With the methodology, we have also added the cons of investment so that one can analyse and then invest since this line of business includes a lot of risk.
