FAQ

How to Buy Global Stocks

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Frequently Asked Questions

We’re building a page of the most commonly asked questions.

Please submit any queries you may have to [email protected]

Here are our latest queries:

Which currency should I select to denominate my broker account in — and should I exchange money before depositing?

Generally, most people will find it more convenient to denominate their broker account in their home/local currency. If you are depositing money into a brokerage account, you must only send the currency you have notified in any deposit instruction. Generally, it will be easier and more economic to simply do a local transfer in your local currency. It is usually more economic to then transact any forex required within the broker account.

How may I fund my global brokerage account?

A large global broker will generally hold local bank accounts in the various jurisdictions in which they accept clients. Therefore, most clients will be able to fund their brokerage account with a local bank transfer (not international) to this local bank account in their own currency. The funds will be deposited and held in the local currency within your brokerage account and can then be transacted into forex as required.

Where can I obtain information on tax on foreign shares for New Zealand residents?

Please download our free Tax Guide for NZ Investors: Foreign Shares.

Where can I obtain information on tax and franking credits on ASX shares for New Zealand residents?

Please download our free Tax Guide for NZ Investors: NZX & ASX.

My present sharebroker does not have the ability to buy shares outside the NZX, ASX… How can I buy the stocks or currencies mentioned in your newsletter?

Our suggested brokers provide access to most major currencies and stock exchanges worldwide. They accept clients from New Zealand, Australia, the US, UK and many other countries. You should be able to deposit or withdraw funds from most bank accounts worldwide in your chosen currency. Please click here for more information.

What percentage of my capital I should allocate to these stocks, especially since one is speculative?

This depends on the quantum of your capital and your financial situation.  Speculative stocks carry a a high degree of risk and would generally be reserved only for the speculation (high risk) allocation of your portfolio.  You need to adequately consider your appetite for risk.  Please speak to a financial adviser to assess your personal situation if in doubt.

My local broker says overseas shares must be held in custodial accounts. Are there additional fees for that?

A custodial account simply means the broker holds the shares for you as a ‘nominee’. This is common practice in many jurisdictions. There is a full explanation of this in our guide – ‘How to Buy Global Shares‘. Generally, custodial or nominee services are included in the brokerage fees you pay when you buy or sell. However some brokers may charge an additional membership or provision fee, particularly if your account balance is below a certain level.