Recently one of our readers sent us an email asking us how to invest in a foreign company. Below you’ll find their oringinal question, and a tidier version of my response to it. Which contains a bit more information than when I first responded.
Simple questions: If I found a company (Australia’s Peplin: PEP) that
looks promising, how would I buy shares? How would an American buy PEP,
for example? Could I do this through ETrade?
Yes, you can buy foreign stocks through ETrade. However, you’ll need to place a Broker Assisted Trade, this can be done by calling ETrade. It’s worth noting that there may be an additional charge for this service as well. (My broker calls it a Foreign Issue Transaction, and it’s a $75 fee.) Also, there may be some restrictions on what foreign companies you can purchase. For instance, If the company is not at least listed on an American exchange, then you may not be able to purchase the stock. But, it depends on your broker. Hope this helped.