How to buy shares of foreign companies?

2.10.2022
210
торговля акциями в украине

Currently, anyone would like to receive an additional income. If you have accumulated a decent amount of money, and you want to invest it wisely, then you should pay attention to buying shares of popular foreign organizations. Of course, many of them are in no hurry to sell their securities on the Ukrainian stock exchange. What should I do in this situation and where can I get this opportunity?

It is worth noting that Ukrainian investors are very limited in their opportunities, and there are only a few ways to get shares of foreign holdings. It is impossible to buy securities on the Ukrainian stock exchange, and the withdrawal of capital abroad has restrictions that are established by the current legislation. But if you really want to make a purchase of foreign securities, then you can still find a loophole.

In our opinion, the most legitimate way before was to get a special permit from the National Bank. This license provided an opportunity to invest your capital abroad. However, after the adoption of the new Law, this need has disappeared, but you should not be very happy. It was replaced by the so-called e-limits. In other words, the investor will only be able to transfer a certain amount of money for any needs in another country. Individuals can send funds that do not exceed 200 thousand euros per year.

The obvious advantages of this method include its full legality, and you can also expect to receive protection of the investor’s rights.

How to buy shares of international companies – the second method

stock trading in ukraine

If you have long dreamed of starting working on the stock exchange of another country, then the easiest way is to travel abroad, where you can open an account with a foreign broker, then returning to your homeland, you can easily trade shares via the Internet.

The advantages of this method include the following:

  • ability to purchase any number of shares,
  • your property rights will be protected by the laws of the country where the brokerage account was previously opened.

However, this business has its drawbacks. You should understand that traveling abroad will be done at your own expense. There are also some restrictions for Ukrainians. If you exceed the online limit, then you are violating the legislation of Ukraine and, accordingly, will be held liable.

Buy shares of foreign companies – for players who are not afraid to take risks

If you can’t travel abroad, there is another method that will allow you to buy shares of the world’s leading companies. You can start cooperation with brokers that provide investors with the opportunity to join trading on the American stock exchange.

To start trading, you need to find a reliable broker. This method is considered the most risky, as you may encounter scammers. The broker will require you to provide a scanned copy of your passport, as well as fill out and sign the contract. Within two to three days, an account will be created for you, with which you can trade shares.

The advantage of this method is that such an organization is registered abroad, so it can easily buy and sell shares of foreign companies. Although the scheme seems quite acceptable, it has a number of drawbacks. For example, in practice, you are not the owner of these securities, and your property rights are not protected by law. You sign the contract with an unknown company. If this organization closes unexpectedly, you will be left without your shares and capital.

How to trade stocks in Ukraine?

trading on the stock exchange ukraine

Despite the fact that residents of this country cannot participate in foreign auctions, they can still purchase shares of some foreign organizations. For example, since last year, Apple-issued securities have appeared on the domestic stock market. In the new year, the National Commission and the Stock Market allowed shares of such well-known companies as Facebook, Tesla, Microsoft, Netflix, etc. To appear on the domestic market, a foreign issuer must submit an application to the National Commission. But since the demand for shares of well-known corporations is present almost everywhere, they are in no hurry to enter the Ukrainian market.

If you want to start trading stocks, you will have to go through several procedures.

What do you need to trade stocks in Ukraine?

Individuals who have reached the age of majority are allowed to participate in this activity. You also need to have the appropriate citizenship or at least a residence permit. Also, make sure that you have the necessary technical base – a computer and access to the global network. And of course, do not forget about the availability of free funds for investing in securities.

How is stock trading performed in Ukraine?

As in any other country, an individual cannot directly apply for the purchase of shares. You can only buy securities through a licensed brokerage company. The broker provides its clients with the opportunity to participate in trades. However, you must first sign an agreement with the broker.

Several dozen brokerage and investment companies have been licensed in Ukraine. To get access to trading, ordinary individuals need to open a brokerage account in Ukraine and top it up with at least UAH 5,000. Special software is installed on the computer, which is intended for buying and selling financial instruments. It is worth noting that the domestic securities market is not so rich, so many investors dream of trading on the foreign stock market.

Tesla Shares: how to buy?

buy shares of Ukrainian companies

A foreign issuer issues securities on its chosen stock market. The brokerage company has the right to purchase and sell financial instruments in this market. The player, in our case, is a resident of Ukraine who agrees to a contractual relationship with one of the brokers who will be able to buy or sell shares on behalf of the exchange player in the future. For each trade, the broker receives a certain percentage. Information about transactions is stored in a special depository.

What markets can I trade on?

The National Bank of Ukraine allows citizens of the country to invest their money in shares of foreign companies, but the amount should not exceed 50 thousand euros per year. For legal entities, the limit is much higher. They are allowed to make capital investments of up to two million euros per year.

To start trading on an exchange in Ukraine, you need to choose a reliable broker. First of all, read its license and the validity period of this document. Before signing the contract, discuss with the company’s representative how cash flows are handled and who will own the shares after the transaction is concluded. The client must receive an extract after the trade transaction, and the securities must be credited to the depository.

Despite the fact that many individuals have begun to show interest in buying foreign shares, not everyone can make a deal. If you take into account that such operations incur additional costs, then the purchase makes sense only if you are going to purchase securities worth at least $ 20 thousand. As for the package worth about two or three thousand dollars, you will not be able to earn in this case. Spending will eat up all your profits.

Some stock market players cooperate with foreign brokers. If you have signed a contract with an American company, then your deposit must be at least 10 thousand dollars. You can transfer this amount to a brokerage account from your personal bank account. Once the contract is concluded, the broker will act on your behalf. What securities should be purchased, the client chooses independently, it can be shares of an American or any other corporation.

Do I need to pay taxes when trading on the Ukrainian stock exchange?

If you receive income from trading with shares or you receive dividends, then you should declare them to the tax service and pay 18 percent of the profit. This rate is relevant for cash receipts from the sale of securities of both foreign and Ukrainian corporations. Access to the investment exchange in Ukraine is granted only after the conclusion of an agreement on these services. Often, the contract specifies the terms, the amount of remuneration, the responsibility of both parties, and the account number where the funds and purchased shares will be credited.

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