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Alcander Seow

Environmental Engineer Minor in Business at Nanyang Technological University

How to invest in foreign/oversea stocks?

Hi, I would like to ask how does one invest in foregin/oversea stocks, the steps to take as a beginner. E.g. Korean Stocks, US Stocks;

Tesla, Korea Entertainment Companies.

Discussion (12)

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Step 1: Open a brokerage account.
Step 2: Explore the demo account to familiarize yourself with platform features like charts, stock analysis, indicators, and more.
Step 3: Learn to interpret financial statements: balance sheet, income statement, and cash flow statement. Evaluate a company's intrinsic value by examining key metrics such as the price-to-earnings (P/E) ratio, earnings per share (EPS), price-to-book (P/B) ratio, and debt levels.

My personal take on investing in individual foreign stocks:
Stock picking is a lot of work. It requires consistent monitoring of stock performance, such as quarterly reports, and analyzing earnings.

You also need to stay updated on important news events and take appropriate action swiftly. For example, Super Micro Computer's stock price dropped after allegations of financial misconduct (accounting fraud) last year.

If you prefer a less hands-on approach, consider investing in top-performing index ETFs.

For US stocks, many online brokerage platforms are available, including IBKR, CMC Invest, Moo Moo, Tiger Brokers, and more.

For South Korean stocks, it's challenging to trade online. You'll need to go through a trading representative, meet higher minimum investment requirements, and pay higher commission fees.

Additionally, you’ll be subject to a 0.15% South Korea’s Securities Tax on sales.

If you're keen on investing in South Korea, you could consider an index ETF like the iShares MSCI South Korea ETF, listed on NYSE Arca.

There are various platform out there provide investors to buy stocks or ETF from overseas. But the most common countries are Hong Kong, Singapore, USA. You may want to explore some of the countries ETF that are listed in US market (E.g. for Canada ticker symbol EWC is the Canada ETF)

For US stocks, IBKR has the cheapest fee at non-promotional rate.

Kenneth Chan

17h ago

Wealth Manager at Phillip Capital

We have one of the lowest fees in the market, plus a new sign up promo: https://www.poems.com.sg/open-an-account/?refer...

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Personally, I use syfe, but you can choose between different brokers.

I've been recommended to ...

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