I want some shares in Facebook. How do I go about buying overseas company stocks — is there lots of complicated admin involved?

How do I buy foreign shares? I want some Facebook stock | This is Money

Tanya Jefferies of This Is Money replies: You can read more here about whether that massive price tag is a sign of a new technology bubble or a good deal. It might be better to get exposure to Facebook through an investment fund or trust which holds a wider pool of similar assets.

If you believe the latter and have strong faith in Facebook's potential, it's understandable you're willing to cross national boundaries to get hold of its shares.

The UK has no comparable firms, after all. However, you should ask yourself if it would be better to get exposure to Facebook through an investment fund or trust which holds a wider pool of similar assets, rather than take the more hazardous approach of investing directly in its shares.

We recently rounded up funds that invest in Facebook and other social media firms, and you might find one there that suits your needs just fine instead of going to the risk and trouble of buying into a single company, albeit a unique one like Facebook. Assuming you have thought about all this and want to go ahead, buying individual US shares is not hard, but does mean doing a bit of admin. The main matters to be aware of when you are buying shares of US or other overseas companies are foreign taxes, how to mitigate them if you can, the extra charges that might be imposed by your broker for trading abroad and the impact of exchange rates on your returns.

If you already have a broker, first check it will let you buy and hold overseas shares. Barclays Stockbrokers does not allow clients to hold US shares unless they have an International Trader account while HSBC InvestDirect will only do so if you are a customer of its HSBC InvestDirect Plus or International share-dealing services. Vodafone shareholders using these services were left with a choice of signing up with a new broker or being forced to sell their Verizon stock immediately it arrived.

We asked investing expert Russ Mould of AJ Bell Youinvest - which does allow clients to hold Verizon and other overseas shares - to explain how best to go about buying the stock of companies outside the UK.

Russ Mould, investment research director at platform AJ Bell Youinvest, replies: It is as easy to buy and sell shares listed on most developed, Western stock markets as it is domestic, London-listed ones — you can do it at the click of a mouse via your normal online dealing account, or for your Sipp Self-Invested Personal Pension or Isa, since overseas stocks are eligible for inclusion in both of these tax wrappers.

Most will offer the US and key European markets as a matter of course although it can be difficult and expensive for them to obtain authorisation to operate on certain stock exchanges, such as those in Japan, Brazil or India. The US is generally the most popular market for any investor wanting overseas exposure and Facebook is a good example of why — the UK does not have a monopoly on global leaders and America is particularly blessed in areas such as technology, where the London market offers a much more limited number of stocks from which to choose.

In addition, US accounting standards are clear, management teams are shareholder-friendly, corporate governance is generally very good and company websites are excellent, so it is easy to find the information you need when you are doing your research.

In the case of US stocks, there is one important bit of admin which you must not forget. Before investing in American stocks and shares through your Isa or regular dealing account, it is necessary to complete a W-8BEN form. This means you benefit by paying a reduced rate of dividend withholding tax, as the standard rate drops from 30 per cent to 15 per cent, which is a valuable saving, even if you will still need to declare any income if your shares are not held within an Isa or Free forex robot 2016 wrapper.

If you are buying only through your Sipp, you do not need to fill in the W-8BEN, as the US tax authorities recognise the Sipp administrator as the entity who can make the necessary declaration on your behalf. The further good news for holders of US securities within Sipps though is the withholding tax rate is removed completely so you pay 0 per cent tax on any US income. Fans of mining stocks who are trading shares in Canada will need to fill in its equivalent of the W-8BEN, the NR form, but tax agreements can be less generous in other overseas markets, assuming there are any at all, and this is one area where investors must be very careful.

Switzerland, for example, withholds tax on dividends zaveri stock broker a rate of 35 per cent and although UK residents can reclaim 20 per cent under double-taxation treaty arrangements, these do not allow free signals for binary options 60 seconds any reduction of tax at source.

You can claim for repayment from the Swiss tax man but the time and expense involved mean some investors take the view this is not worth the bother, unless very large sums of money are involved, so they can lose out. A further area to watch is udemy forex watchers currency.

If the pound rises in value against the dollar, for example, then your Facebook shares will be worth less in sterling terms, assuming the share price does not change.

Equally the pound may go down against the greenback and increase the worth of your Facebook position, but you do need to keep an eye on currencies and this can be done easily forex um neun premium the web.

Also note any trades you make overseas are likely to bring an additional charge from your broker to stock broker fraud lawyer illinois the cost of translating the pounds in your account to the right local currency so they can buy the shares for you. At least the standard 0.

CREST is the paperless trade processing system stocks trading for dummies ensures investors are recognised as the owners of shares which are dealt in electronic format.

Overseas share dealing | Hargreaves Lansdown

It also oversees other key functions such as the delivery of dividend payments. International shares cannot be handled directly by CREST so it issues CREST Depositary Most expensive stock trading software, or CDIs.

One CDI represents one share in an overseas stock and for most major markets they are a cheap, simple way of getting exposure to international buy shares nyse uk. CDIs are not available on all markets — Japan and the key Asian arenas are notable exceptions — and in most cases they tend to be only available for large-cap stocks, but the course educational forex training eurozone markets, as well as America, Canada and Switzerland, can be accessed in this way.

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How do I buy overseas shares?

Can a US Investor Buy UK Stocks? | Finance - Zacks

I'm keen to get hold of some Facebook stock but don't know how to trade outside the UK By Tanya Jefferies Published: I want some Facebook stock', 'url': Has Silicon Valley lost touch with reality? Facebook shares leap as it hits 10 years old, but who are the fund managers that like social media? Investors guide to saving tax Fund supermarket: Flat fee service and no sign-up costs. Share or comment on this article e-mail 9.

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How do I buy foreign shares? I want some Facebook stock | This is Money

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