Investing Abroad
Investing Abroad
The practical side of owning the world from a U.S. brokerage account: which route to use, what currency moves do to your returns, how OTC foreign shares trade, and how to read reports that don't follow U.S. rules.
All guides in this section
How to buy foreign stocks from a U.S. brokerage account
Four ways a U.S. investor can own foreign companies: listed ADRs, OTC ADRs and ordinaries, international accounts, and funds. Costs, FX fees, a checklist.
Currency risk: why your foreign stock can rise while you lose money
How exchange rates change the dollar return on foreign stocks and ADRs, with a worked example, hedged vs. unhedged funds, and how dividends get converted.
Foreign stocks on the OTC market: what U.S. investors should know
How foreign shares and ADRs trade over the counter: OTC Markets tiers, F and Y ticker suffixes, Rule 15c2-11 changes, spreads, and why some brokers restrict.
Single ADRs vs. international ETFs and funds
Comparing individual ADRs with international ETFs and mutual funds on diversification, cost, foreign tax withholding, the fund pass-through credit, and control.
When the world's stock markets are open, in Eastern Time
Trading hours for 10 major stock exchanges converted to U.S. Eastern Time, with daylight-saving mismatches and why ADRs gap at the New York open.
Reading a foreign company's financial statements
What changes when you read a foreign company's reports: IFRS vs. U.S. GAAP, Forms 20-F, 6-K and 40-F, semiannual reporting and where to find filings.