A: Foundation of stock buying in the international
🌍 Foundation of Stock
Buying in the International Market
1. Understand What a Stock Is
- A stock
(or share) is ownership in a company.
- When
you buy a stock, you become a part-owner (shareholder) of that
company.
2. Know Why People Buy International Stocks
- Diversification:
Reduces risk by investing in different countries.
- Growth
Opportunities: Some countries or markets grow faster than others.
- Currency
Advantage: Earning in stronger currencies (like USD, EUR, JPY) can
protect your wealth.
3. Types of International Stocks
- Direct
Stocks: Buy from foreign stock exchanges (e.g., buying Samsung on the
Korean exchange).
- ADRs
(American Depositary Receipts): Foreign companies listed on U.S.
exchanges (e.g., Alibaba on NYSE).
- ETFs/Mutual
Funds: Bundles of international stocks (good for beginners).
4. How to Start Buying International Stocks
Step 1: Open a Global Trading Account
- Use
brokers like Interactive Brokers, Saxo Bank, eToro, or local banks
with global access.
Step 2: Research Companies and Countries
- Use
sites like Yahoo Finance, Google Finance, or Morningstar to check:
- Revenue
- Profit
- Growth
- Risks
Step 3: Understand Currency Risks
- Stock
value may go up, but if the currency drops, you lose money.
5. Check Important Indicators
- PE
Ratio (Price to Earnings): Is the stock expensive?
- EPS
(Earnings Per Share): Is the company profitable?
- Dividend
Yield: Does it pay you income regularly?
- Debt
Ratio: Is the company in too much debt?
6. Know the Risks
- Political
risk in that country
- Currency
fluctuations
- Different
tax rules
- Time
zone and trading hours
7. Start Small and Learn
- Begin
with ETF funds (e.g., MSCI World Index ETF) or strong companies you
understand.
- Watch
the market, learn trends, and increase your investment step by step.
Bonus Tip: 🛡️ Use This Rule
“Invest in what you understand. If you don't know the
company, don’t invest in it yet.”
Would you like a list of beginner-friendly international stocks or ETFs to start with?
A: If I use the Schwab?
Great choice! 🏦 Charles Schwab is one of the most trusted U.S. brokers and a solid platform for buying international stocks. Here's a simple guide on how to use Schwab to invest globally:
✅ Using Charles Schwab for
International Stock Buying
🔹 1. Open a Schwab
Brokerage Account
- Go
to schwab.com and create a Schwab
One® Brokerage Account.
- As
a non-U.S. resident, you'll need to fill out a W-8BEN form
(for tax purposes).
- Make
sure you have:
- A
valid passport/ID
- Proof
of address
- Bank
account (can be international)
🔹 2. Fund Your Account
- Transfer
money (USD preferred) from your bank.
- Schwab
accepts international wire transfers.
- You
may also link your bank account if it’s U.S.-compatible.
🔹 3. Buy International
Stocks in 2 Main Ways
✅ A. U.S.-Listed International
Stocks (Easiest)
These are foreign companies listed on U.S. exchanges
like NYSE or NASDAQ.
- Examples:
- Alibaba
(BABA) – China
- Toyota
(TM) – Japan
- Nestlé
(NSRGY) – Switzerland
- You
can buy these just like any U.S. stock using the Schwab platform.
✅ B. Global ETFs and Mutual Funds
These give you broad international exposure in one
click.
- Examples:
- SCHF
– Schwab International Equity ETF
- VEA
– Vanguard FTSE Developed Markets ETF
- VXUS
– Vanguard Total International Stock ETF
✅ Why ETFs? Easy to
manage, low-cost, and diversified.
🔹 4. Advanced: Direct
Foreign Stocks
If you want to buy stocks directly from foreign exchanges
(like Tokyo or London):
- Schwab
offers Global Investing Services, but:
- It
may require higher account minimums
- You
may need to call Schwab's Global Services to place trades
- Foreign
exchange fees apply
🔹 5. Use Schwab’s
Research Tools
Inside Schwab’s dashboard, you can:
- Analyze
company financials, earnings, and news
- See
Morningstar ratings on ETFs and mutual funds
- Track
your portfolio performance
🔹 6. Watch Out For
- 🌍
Currency exchange fees when buying non-USD stocks
- 🇺🇸
U.S. withholding tax (30% on dividends unless reduced by tax
treaty)
- 📉
Foreign stock volatility (check political and economic news of the
country)
🧠 Final Tips for
Beginners
- Start
with ETFs if you're new to international investing.
- Build
your portfolio slowly and steadily.
- Use
Schwab’s mobile app to track your holdings on the go.
Would you like me to help you choose the right ETFs or stocks to begin with on Schwab based on your risk level or goals?
A: Yes
🧭 Step 1: What's Your
Investor Style?
Please choose one (or tell me your own style):
- Safe
& Steady – I want low risk, long-term growth.
- Balanced
– I want a mix of safety and growth.
- High
Growth – I can handle more risk to get higher returns.
- Dividend
Income – I want regular income from dividends.
➡️ You can reply with a number
(e.g., "1") and I’ll give you the best ETFs or stocks for that style.
While you choose, here are sample ETFs for each style
that you can buy on Schwab easily:
1️⃣ Safe & Steady (Low Risk,
Diversified)
|
Ticker |
Name |
Description |
|
SCHF |
Schwab International Equity ETF |
Big international companies (excluding U.S.) |
|
VEA |
Vanguard FTSE Developed Markets ETF |
Stocks from Europe, Japan, etc. |
|
VT |
Vanguard Total World Stock ETF |
Global stock market – includes U.S. and international |
2️⃣ Balanced (Mix of Growth &
Safety)
|
Ticker |
Name |
Description |
|
VXUS |
Vanguard Total International Stock ETF |
Full international exposure |
|
ACWI |
iShares MSCI All Country World Index ETF |
Global coverage (emerging + developed markets) |
|
IDV |
iShares International Select Dividend ETF |
Global dividend stocks (mix of safety + income) |
3️⃣ High Growth (More Risk, More
Return)
|
Ticker |
Name |
Description |
|
EMXC |
iShares MSCI Emerging Markets ex-China |
Fast-growing countries like India, Brazil |
|
INDA |
iShares MSCI India ETF |
India-focused growth |
|
KWEB |
KraneShares China Internet ETF |
Tech growth in China (riskier) |
4️⃣ Dividend Income (Passive
Income Focus)
|
Ticker |
Name |
Description |
|
VYMI |
Vanguard International High Dividend Yield |
Big, stable dividend-paying companies |
|
IDV |
iShares International Select Dividend ETF |
High dividend stocks across the world |
|
DWX |
SPDR S&P International Dividend ETF |
Global companies that pay regular dividends |
👣 What’s Next?
Let me know:
- Your
investor style (choose 1–4 above)
- Or
your goal (e.g., grow money over 10 years, get passive income,
etc.)
- And
your budget (how much you want to invest to start)
Then I’ll build a simple starter plan for you!