As many US stock traders are interested in living and working abroad, I thought it essential to write an article on vital information for new US stock traders looking to set up trades in Asia.
So you’ve just landed in Beijing or Shanghai or Seoul, and now you can finally get your sea legs back. It means you probably also have some hours to kill before meeting friends for dinner. What’s the best way to spend this precious time? Why not start by investing in Chinese stocks(check here for more info).
China has one of the largest markets for stock trading globally, but this is probably not a good idea unless you are an expert already. It’s like trying to fly a plane without ever having seen one before – it’s possible if you’re perfect (and lucky), but it’s much better to stick with what you know first until you feel confident that it won’t take off without you.
Find a broker
The first thing is to find a broker. Make sure your broker offers services for buying stocks online, as well as the ability to make calls at all hours of the day (if you can’t make overseas phone calls, this trading method will not work). It’s also better if they offer live support 24/7.
Every country has regulations regarding brokers; always choose reputable ones who won’t run away with your money or hide their contact information. Hong Kong is the most accessible place to start a trading career. With a high volume of US stock traders, Hong Kong brokers are accustomed to dealing with American clients, and the process is streamlined.
Now choose a company that will direct deposit money into your account so you can begin buying stocks online directly from your workplace or home office. It is essential as most brokers only deal in cash transactions which requires an extra step of depositing money at a local bank, followed by phone confirmation before placing trades.
Set up SEPA
In this case, it’s best to have SEPA transfers set up, as many US investors transfer funds from American banks to foreign banks through electronic bank wires (SEPA). Your broker should help with this if he doesn’t already offer it.
Once you have your trading account and brokerage firm, it’s time to begin buying stocks online in Asia. You will need a list of stock symbols for the companies you want to buy. If we use Apple Computer as an example, its stock symbol is AAPL on NASDAQ (a US company), and its other code/symbol is 2317 HKG on the Hong Kong Stock Exchange (an Asian company).
It’s essential to purchase precisely one share of every stock because brokers often charge additional fees for small trades. It can add up quickly if you’re starting. For this reason, it’s also best not to trade stocks less than $3 or 1 British pound (GBP’t already offer it.
There are some options for trading stocks in Asia.
You can do it yourself, which requires some research on the company’s fundamentals and some technical analysis on their charts to ensure they are a good candidate for buying. You can hire someone else to do it for you.
It is usually best if you are new to stock trading, as it takes time to learn all of this information. For this reason, hiring someone else will ensure that your investments are sound even though they aren’t performing well right now. This person should have experience investing in Asian companies, especially those listed on Hong Kong exchanges.
Start an account
Starting up an account with them is relatively simple since most brokers have English-speaking customer service staff ready to help at all times of the day. You should familiarize yourself with this information and make sure your broker can provide it to you at a moment’s notice (some brokers take up to 1 business day to get back to clients).
Hong Kong is the most accessible place to start a trading career. With a high volume of US stock traders, Hong Kong brokers are accustomed to dealing with American clients, and the process is streamlined.
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