How to invest in foreign/oversea stocks?

I have learned something from the comments.

IBKR for the win

The desire to invest globally, especially in companies you're passionate about, is something I regularly discuss with emerging professionals. Recently, I guided a client - a K-drama enthusiast in tech - through building her first international portfolio. While initially drawn to Korean entertainment stocks, she developed a well-balanced global portfolio that still includes her favorite companies.

Let me share a milestone-based approach to international investing:

1. Broker Selection
   You'll need a reliable international broker. These options are popular among my clients:

• Interactive Brokers (IBKR): Known for competitive fees and broad market access
• Tiger Brokers: User-friendly interface, perfect for beginners
• TD Ameritrade: Strong research tools and commission-free US trades

2. Market Access Essentials
   Many believe you need different brokers for different markets - this isn't true. Most major brokers offer multi-market access through one account. Consider:

• Currency exchange fees
• Market-specific trading hours
• Regulatory requirements
• Withholding tax implications (especially for US stocks)

3. Portfolio Construction
   Instead of jumping straight into individual stocks like Tesla or entertainment companies, consider this approach:

• Start with broad market ETFs (e.g., S&P 500 for US exposure)
• Add sector-specific ETFs (e.g., technology, consumer discretionary)
• Consider individual stocks as satellite positions

A Client Success Story:
One client structured their portfolio as:

• 70% broad market ETFs
• 20% sector ETFs
• 10% individual stocks they're passionate about

This balanced approach has delivered growth while managing risk effectively.

4. Key Considerations

• Currency Risk: SGD/USD fluctuations affect returns
• Time Zone Differences: Impact trading and monitoring
• Tax Treatment: Varies by market
• Diversification: Avoid over-concentration

5. Getting Started
6. Open an international broker account
7. Begin with small positions
8. Implement risk management strategies
9. Monitor and rebalance regularly

For Korean stocks specifically:

• Consider ETFs like EWY (iShares MSCI South Korea ETF)
• Research Korean company ADRs
• Understand Korean won currency impacts

For weekly insights on building global portfolios and navigating market milestones, follow me on Instagram @ngooooied. I share practical strategies for developing robust investment frameworks aligned with your goals.

Remember: Successful international investing isn't about chasing popular stocks - it's about building a diversified portfolio that grows with you through life's milestones while managing risks effectively.

Momo or tiger