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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.

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Ngooi Zhi Cheng

4d ago

Student Ambassador 2020/21 at Seedly

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
  1. 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)
  1. 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.

  1. 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
  1. Getting Started
  2. Open an international broker account
  3. Begin with small positions
  4. Implement risk management strategies
  5. 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.

Alvin

5d ago

Sharing Referrals at https://t.me/SgRefs

For US stocks, its very accessible to us SIngaporeans. Can open a brokerage account with banks or choose online brokerage like IBKR, Webull etc.

For Korean stocks, there are very few brokerage that have access to it. You can try looking at POEMS. Other option you could try out would be to invest in a ETF focused on Korean stocks

Most online brokerages have access to US , HK stocks

Depend on which countries but for US, there are a lot of brokerages that supports such as Syfe Trade...

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