Bangladeshi can invest in foreign stocks. Almost all foreign stock exchanges allow non-citizen to invest in their stock market. As a Bangladeshi citizen, you can easily invest world largest stock exchanges such as NYSE, NASDAQ and NSE. But, a non-resident citizen needs extra more steps to invest in foreign stocks.
How to invest in foreign stocks?
Documents may vary from country to country. At the outset, you may collect below documents:
Passport
TIN (Tax Identification Number)
Non-criminal involvement certificate
Steps to invest in foreign stocks
Step No. 1
You should find out an international brokerage house to open a BO (Beneficiary Ownership) account. If you are new in stock investment, you should read how to start stock investment in order to get the basic ideas. Moreover, stock market basic knowledge can boost up your market knowledge.
Try to find out cost effective brokerage house. Low commission rate broker house is highly recommended if you start day trading or swing trading. Bangladesh stock exchange doesn’t allow day trading. In US, day trading is allowed.
Brokerage house is used for stock investing and trading. At present, most of the houses provide online trading system. So, you can get real time market access to control buying and selling order. Subtle difference between investing in Bangladesh stock exchange and any foreign stock exchange.
Step No. 2
Identity verification. As non-resident investor, you may have to provide personal information from Passport. In some case, for investing in US stock market, you should provide document that you have never involved in criminal activities. As Passport is widely acceptable document for personal identification, you should have a passport to apply for BO account opening.
Step No. 3
You have to deposit money from your bank account to BO account. You can use wire transfer or online payment option to deposit money in your BO account.
Final Step
Now you can put buying and selling order by using online platform of your broker house.
Key Points:
1. Opening a BO account in a broker house that serves foreign clients.
2. Transfer money to your client account.
3. Start your first investment.
How can effectively start your first investment or trade?
In this step, you should choose your trading method. For day trading, you should have knowledge on day trading strategies. For swing trading, skill requires on how to pick stock for swing trading. Finally, for investment, you have knowledge on how to buy stock for long term investment. These are three common method to enter in stock market. Speculation is another type which is the mid position of day trading and swing trading.
Barrier in investing foreign stocks
Tax Barrier
In US stock market, a non-US citizen is to provide tax both on capital gain, realized gain and dividend gain. Like US, other countries also cut tax from investment return. In each country, tax rate varies year to year. On dividend gain, a non-US citizen may provide 30% tax on dividend gain. This is great barrier to invest in foreign countries.
Currency Barrier
At present, 1 dollar equals to 86 tk. A Bangladeshi citizen may pay 86000 tk for 1000 dollar per share. So, huge capital is required to invest in those countries which countries’ currency rate is skyrocketing. He can buy 86 top blue-chip shares by 86000 tk from Bangladesh Stock Market.
By following above mentioned steps, a Bangladeshi can invest in foreign stocks.
Frequently Ask Questions
Can you buy US stocks from Bangladesh?
Yes. You can buy US stocks from Bangladesh. Before starting investing in US stocks, you have to go through a strict procedure. Firstly, arrange a passport and TIN to open a client account in an international brokerage house. Secondly, search a brokerage house in US. Thirdly, after opening BO account, deposit money through wire transfer or online deposit system. Finally, start investing in US stocks market.
How can I invest in NYSE from Bangladesh?
You can invest in NYSE from Bangladesh by following above how to invest in US stocks market.
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