A STEP BY STEP GUIDE IN HOW TO BUY US ETFS FROM EUROPE

  • Get the exact information about the aspects like country, region, or sector in which you are willing to make a trade. ETFs can be used as a tool for your trade on the performance of a country, region, or sector. If you predict a rise in the market of a country, you can buy an ETF which follows an index of that country’s stocks put together. Otherwise, you can buy an ETF of a specific sector that follows the index of the sector’s stocks for a respective country if you predict a rise in a sector and not the whole country’s market. For example: if you think the US market will experience an increase, then you can go ahead and buy an ETF which follows the index composed of US stocks like the S&P 500 Index. If you expect a hike in a sector, Let’s say Technology, Then you can buy an ETF which tracks index containing US technology-related stocks such as ‘NASDAQ 100’.
  • Refine the ETFs based on their size and expense ratio. Always try to prefer choosing an ETF with a bigger size and lower expense ratio. ETFs which are big in size tend to be more liquid than those which are small in size. ETF size is classified based on their ‘Assets under Management’ which is also known as ‘AUM’. The higher the value of ETF would be, the more increase in the liquidity of the ETF. Expense Ratio of an ETF indicates the average annual fee of the ETF. It is highly recommended that you choose ETFs with an expense ratio lower than 0.1%.
  • Select the domicile, stock exchange and currency of the respective ETF you want to trade with. Domicile represents the country where the ETF issued. The Taxation of an ETF varies according to the Domicile. 90% of the ETFs are based in US and EU domicile (70% US domicile and 20% EU domicile). The Stock Exchange is different from the Domicile.
  • Getting a good broker is also very important. Considering the important aspects such as broker’s fees, easy access, trading platform, and user-friendliness, you can find a suitable broker according to your requirements. It is also important that you choose a safe and reputed broker while you are searching for one in order to avoid risks.
  • Purchase the ETF you are interested in trading. Search for the ETFs you are willing to purchase on an online trading platform. You can buy an ETF through the online trading platform where you can choose from different order types.
  • Always keep track of the details of your ETF regularly without fair. Now, that you have purchased the ETF, it is very important that you monitor the details every once in a while. It is best if you develop a strategy on choosing to keep the ETF for a longer period or a shorter period and manage them properly in order to prevent loss and target profit.
  • ‘Charles Schwab’ — considered as the best overall online platform for making an investment in ETFs. It is and has always been the best advocate for people who invest individually. It is also well known for its discounts. It is also considered to be one of the most affordable platforms in the market. The brokerage’s commissions on all ETFs is ‘Zero’ and individual stock trades are free as well.
  1. You can build a best and diversified portfolio using the ETF Portfolio Builder.
  2. You can find the best funds for the portfolio using the ETF screeners.
  3. There are no additional or hidden charges to use Schwab’s platforms and mobile apps.
  1. Having the overabundance of platforms makes the tools hard to find.
  2. Forcing the investor to hire a financial advisor who belongs to their platform.

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