Geographical boundaries are never a barrier for current investments. If a booming economy excites you, you may not want to have a second thought on investing in it.
But wondering how to go about?
There are several conventional brokers including HDFC securities, Kodak securities and Axis securities which help you trade in International markets.
Here we will brief you on certain tips to follow while investing in International securities.
- Opening an account in any of these conventional broking firms will facilitate your trading in International markets. Most of them will have an account in the international broker firm which they are affiliated.
- You will require a bank account for currency transfer
- An Indian citizen can invest up to 2,50,000 dollars in International markets.
- You will need to follow the RBI guidelines such as doing KYC (know your customer) and filling LRS (Liberalized Remittance Scheme) form and FEMA (Foreign Exchange Management Act) forms.
- Firms like Stockal help you trade in International markets. Opening an account in their firm will introduce you to their schemes – some of which you can trade as much as possible and others which will cost 3 dollars per trade.
- The cost of investment in International markets will always be higher as the payment is done in dollars. So, ensure that the allocated amount for investment is in accordance with the maintenance cost.
- Venture into international markets only if you have huge corpus fund to invest. Or else the huge maintenance charge is not worth making the effort.
- Though there are conventional Indian brokers as well as international brokers who directly involve Indian citizens to invest in International markets, choose someone whom you find comfortable to work with.
- Do not invest in International markets for the sake of diversifying the investments. Do it only if you have a huge corpus amount in hand. Otherwise, mutual funds should be your best option.
- Remember that just because it is international markets your investments need not be profitable. So, do a proper study on the company, its prospects and profitability before you invest.
If you are a highly successful investor, International markets may be your best option. However, make a detailed study before venturing into the ocean.
Happy Investing !