As a stock market investor you need to pick the best stocks which can give you good returns over the longer term. Also in addition, it is always better to diversify your portfolio. The stocks which are listed in the stock exchanges outside US are giving better returns than the domestic stocks. The question then is that how you can buy foreign stocks.

Things You Will Need

Computer with an internet connection to conduct online research.

A telephone connection to talk to the brokers.

Step 1

The best place to start your search is with the discount online stock brokers like E*Trade and Fidelity. Most of these now have trading platforms available for various stock exchanges around the world. However, you will need to talk to their representative before opening an account as trading on only a select few foreign exchanges is allowed.There are brokers apart from the discount brokers who can buy stocks for you from any stock exchange in the world. These brokers have a specialized service which is much better than the online discount stock brokers.

Step 2

Another good way to buy foreign stocks is to buy the ADR's or the American Depository receipts of these companies which are listed somewhere else. These ADR's represent the underlying shares which are listed in the home country. The ADR's are listed on NYSE.

Step 3

Mutual funds are another easy way to invest in international stoks. These mutual funds invest in the stocks of a large number of countries thereby providing the needed diversification. This is a relatively hassle free way of investing in international markets. Fidelity, Vanguard and several other have a lot of emerging marekt mutual funds.

Step 4

ETF's or electronically traded funds also provide a proxy way to invest in international stocks.There are country specific ETF's which can help spread your risk.

Investing in foreign markets will help to get you good returns on your investment. Select a way which you feel is good as a lot of options are available for foreign investing.

Tips & Warnings

Always make sure that you check the commission before you put in the order for a foreign stock. There are a lot of hidden fees which can be extremely high.