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3. Foreign Direct Investing
There are two ways for investors to buy foreign stocks directly. You can open a global account with a broker in your home country, such as Fidelity, E*TRADE, Charles Schwab, and Interactive Brokers. The other option is to open an account with a local broker in the target country. For example, the MONEX BOOM trading platform based in Hong Kong gives investors access to Hong Kong stocks in addition to 11 other markets.
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Going direct is not suitable for the casual investor. There are additional costs, tax implications, technical support needs, research needs, currency conversions, and other factors to consider. In short, only active and serious investors should participate in foreign direct investing.
Investors need also to be wary of fraudulent brokers not registered with regulators in their market, such as the Securities and Exchange Commission (SEC) in the U.S.