Spreading Your Risk Across Nations

International Stock trading

Globalization has opened up international stock markets, meaning that it is inpresent day possible to trade on instruments in states and economies that may be outperforming local instruments due to influences like a weakening stock market or national downturn. The world has about 60 foremost stock markets with a combined market capitalization of approximately USD70 trillion. New York Stock Exchange, London Stock Exchange, Tokyo Stock Exchange, Shanghai Stock Exchange. Hong Kong Stock Exchange, Euronext, Shenzhen Stock Exchange, TMX Group Canada and Deutsche Borse AG, Germany are the biggest 10 players in the world of stock exchanges. It is common for investors to have a desire to enter into the international stock markets when the international stocks are blooming in front of eyes such as witnessing the remarkable triumph of Facebook, Amazon, Apple, Netflix and Google.

At Monex, we help you go international. Because focusing only on domestic share market may expose you to increased risks from downturns in the economy, political factors, environmental events, and other risk factors. Buying foreign shares is no more challenging when you are with Monex.

Choose Your Right Broker

The first step to buying international stocks are to choose your right broker. There are few factors to consider when it comes to choosing your best match. The openness to markets worldwide, brokerage fees, customer service, promptness, exchange rates, the buffer and etc. We can guarantee you that at Monex we have the access to major international markets such as New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange (TSE), Hong Kong Stock Exchange (HKEX), Shanghai Stock Exchange, (SSE), Shenzen Stock Exchange (SZSE), Taiwan Stock Exchange (TWSE), Korea Exchange (KRX), Indonesia Stock Exchange (IDX), Bursa Malaysia (MYX), Philippines Stock Exchange (PSE), Singapore Exchange (SGX), Stock Exchange of Thailand (SET). This covers approximately seventy percent (70%) of world market capitalization.

Open An Account

Opening an account with Monex is as easy as a pie. The same can be opened within few minutes online by fulfilling the simple eligibility criteria as below;

  • Age 18 or over
  • Australian residential address
  • A mobile number
  • Personal photographic proof of identity
  • An Australian business number (ABN) and/or tax file number (TFN) if any

Diversification

One of the foremost advantages of investing on foreign trading is the variation benefit. Diversification is usually the key to shielding against cataclysmic downside in the stock market. Notwithstanding the growing connection between domestic and foreign equities, pursuingdivergenceacross many nations still makes investing logic, predominantly as a way to contact lower market valuations. 

Choice Of Opportunities

Investing outside of Australiaoffers a much greater choice of companies and opportunities. Even though you think information may be harder to come by and companies more challenging to assess, we at Monex makes it much easier and your potential reward can be much greater.

Currency Fluctuations

International Stock trading

Even though one may see currency fluctuations as always negative, currency precariousness works both ways. If the exchange rate changes in your favor, you could end up earning a premium on your investment.

Exceptional Returns

Foreign shares may open doors to partake in astonishing gains in briskly mounting economies.

Entrance To Developing Markets And Global Movements

Asia offers an uncountable of opportunities for investors, from emerging markets to some of the largest economies in the globe. Monex, make available for you a gateway at your fingertips and give admission to both developed and exotic Asian markets.

Still Hesitant

There are voluminous whys and wherefores to invest globally, such as greater diversification, possibly healthier risk-adjusted returns, the paybacks of active management, and many more. Nonetheless, many investor portfolios still continue underexposed to international shares, often due to misperceptions about the asset class.

Common “Myths” About International Stock Investing

Being Rich

The biggest myth about hesitance to start investing internationally is that thinking one has to be ultra-rich to do this. You do not have to be a star trader or a market expert to partake in the international equity markets. We at Monex, are here to help you become a one instead by investing in international stocks. In fact, even though if you do not know much about the markets we will take you through the process and keep you updated on the developments and then take you on track to becoming a successful investor in your life.

It Is Like A Casino

The share markets may be a slotting machine in the short run, but in the lot run it is a weighing machine. When we discourse about investing, we are speaking about the long run. If you are talentedenough to identify good stocks and hold on to such stocks for the long run then it will create wealth for you.

Currency Volatility

Inconsistent exchange rates or currency volatility is another key influential myth that is running in potential investor’s head and can impact the international share trading. Now, when the currency starts to fluctuate, things could go either way for you. It can even be that if the AUD weakens, you could end up with gains.

Bottom Line

Investing in international stocks is definitely a great way to diversify your portfolio and get possibly higher returns. Conversely, for the average investor, navigating the international markets can be a difficult task that can be fraught with challenges. With the help of Monex, you can understand the main risks and barriers faced in international markets, we can position yourself to minimize these risks so that you can benefit from a well-balanced equity portfolio.


Read More:
January Roundup Of US And China Relations
On January 1st, 2019, The 25% China Tariffs Come into Effect

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