Trading in Foreign Exchanges & Buying Shares
What is Transaction in Foreign Exchanges?
We have compiled information about trading in Foreign Exchanges for you. In this article, we will share with you how you can trade in foreign exchanges, which institutions you can use to buy stocks from foreign exchanges, and details about this subject. Every exchange that is not subject to the capital market rules in Turkey is a foreign exchange. Foreign exchanges are exchanges where you trade in currencies other than Turkish Lira. If you want to trade in the most well-known foreign exchanges, you will hear a lot of names such as Dow Jones, S&P 500, Nasdaq, Dax and Nikkei.
What are the Advantages of Trading in Foreign Exchanges?
Why would a Turkish investor want to trade in foreign exchanges? Although there is no single answer to this, let's summarize the possible answers, including the advantages.
Lack of specific sector and stock in Turkey. Some investors may be start-ups who have found promising stocks and want to invest in them. For example, with the use of graphics cards in Bitcoin mining, the value of technology companies such as Nvidia and Rodeon has increased rapidly. An investor who is interested in crypto currency mining may want to buy this stock in the overseas market (Nasdaq), where technology companies and silicon valley companies are concentrated, because the investor knows that this sector is non existent in Turkey.
Benefiting from exchange rate increases:
Another advantage that foreign exchanges offer to their investors is that, apart from the stock return, they also offer the opportunity to profit from the increase in the exchange rate since it is in foreign currency. During a stock investment in the American stock market, if the stock and dollar/TL increase at the same time, profit can be written thanks to the two increases.
Negative Aspects of Trading in Foreign Exchanges
In addition to the advantages of trading in foreign exchanges, there are also negative aspects for investors:
Lack of Information:
The possibility of being affected by the economic course of a country whose agenda you do not know at all. The 2008 Economic crisis came as an American Centric crisis. The 2010 European Debt crisis was also a crisis for someone who does not live in Europe and does not follow the agenda.
If you do not know the foreign language of the country where you want to invest in the previous article, this creates a disadvantage for you. Not being able to access or understand company news, balance sheets and many other information can create problems.
If the stock you buy is operated on your own behalf and account, then you are subject to the capital market rules of the relevant country.
The biggest difficulty in trading in foreign exchanges as a Turkish citizen is the commission and other taxes paid to the institutions used to make transactions.
The most well-known stock exchanges in the world, where many domestic investors trade, with a high transaction volume and depth, are Asia Pacific stock markets, North American stock markets and European stock markets. Here is the list of the Stock Markets
- Asia Pacific Stock Exchanges
- Shanghai (China Stock Exchange)
- Kospi (South Korea Stock Exchange)
- Nikkei (Japan Stock Exchange)
- Hang Seng (Hong Kong Stock Exchange)
- North American Stock Exchanges
- Dow Jones (Industrial production companies index)
- Nasdaq (Indices of tech companies)
- European Stock Exchanges
- Dax (German Stock Exchange)
- FTSE100 (London Stock Exchange)
- CAC40 (French Stock Exchange)
- IBEX35 (Spanish Stock Exchange)
The most curious subject is which companies, which banks and which brokerage houses it is possible to trade in foreign exchanges?
Qnb Finansbank Investment Overseas Investment
Finansbank, which was acquired by Qatar National Bank QNB, is one of the leading banks where you can open an investment account where you can invest abroad under the umbrella of Finans Invest. You can quickly invest in foreign stock market indices such as Dow Jones, Nasdaq and S&P500. Unlike stock markets, it also offers opportunities for futures transactions.
Garanti BBVA Investment
Garanti BBVA, a Spanish partnership, allows you to invest in the stock markets of 26 different countries. With the opportunity to trade in 26 different foreign exchanges, it is among the banks where you can buy and sell foreign stocks.
Ünlü Menkul Kıymetler (Utradeinternational)
Ünlü Menkul Kıymetler have designed a special platform for their customers who want to buy overseas stocks. 26 countries provide the opportunity to trade in 120 different exchanges and more than 10 currencies. The list of the stock exchanges where you can buy and sell shares of Ünlü Securities is as follows. It reports that the relevant exchange's fixed payment for commission rates and Ünlü securities have their own commission rates. Ünlü Menkul Kıymetler may have set a commission of around 3 per thousand.