Investing in Foreign Stocks

[rukawa]

I am interested in investing in stocks in Europe and Asia but I wonder what the best way to do this is. I know that some stocks list as ADR's on US exchanges but liquidity can be low. The other alternative is to convert to a foreign currency and buy stocks on a foreign exchange. I am wondering how these alternatives compare and what other peoples experience has been. I also wonder about the mechanics of buying a foreign stock with an online broker.

 

If you sell the stock does it settle in the currency of the stock...would you need some sort of forex account? I am currently with questrade but I am guessing other brokers would be similar. What is the best way to minimize foreign exchange fees?

 

Also what is the best online broker for this. I was thinking interactive brokers.

[meiroy]

 

Can be done easily with IB.

 

[berkshiremystery]

Probably best choices...

 

1) Interactive Brokers

 

https://www.interactivebrokers.com/

 

2) Schwab Global Account

      (seems currently some new offering by them, and it's also a separate forex account)

 

http://www.youtube.com/watch?v=GW7c3BZn1iM

http://www.schwab.com/public/schwab/investing/accounts_products/accounts/global_trading

 

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http://www.fatwallet.com/forums/finance/1213147/

http://www.marketwatch.com/story/schwab-goes-global-new-platform-gives-investors-direct-access-to-12-non-us-markets-2012-09-12

 

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[oddballstocks]

Schwab Global sucks, they only allow you to trade a pre-approved list of large caps that they have researched.

 

Fidelity is a great option, I think they're up to 20 foreign markets now. The mechanics, you type in the ticker and click buy. At Fidelity you can enter orders any time but it's probably best to trade during market hours.