How is the American stock exchange developing
Buying securities from the USA - no problem in Germany
Securities from the USA are in demand. The world's leading US stock market barometer sets the pace and often pulls the other stock indices up with it.
Many investors are therefore wondering how one can buy securities from the USA or whether the desired paper can also be acquired in Germany. Many large stocks that are listed in the Dow Jones and the Nasdaq technology index can also be traded in this country with the corresponding International Securities Identification Number (ISIN) and securities identification number (WKN).
Securities USA: Trading volume on Nasdaq and NYSE mostly higher
However, the trading volume of large US stocks on German stock exchanges such as Frankfurt is often lower than on the corresponding US stock exchange (New York Stock Exchange, Nasdaq and American Stock Exchange). The trading hours are also different. While US securities can be traded until 10 p.m. German time, in Germany they close at 8 p.m.
For private investors the question now arises whether they should buy the desired securities in the USA or in Germany in order to get a fair price. The reason: the more liquid the market, the fairer the prices. Due to the high trading volume on the home stock exchanges of Google & Co, direct trading on the US stock exchanges is often an option.
US trade: fees often higher
As an investor, one should note that the house bank usually charges higher fees for this service than for trading in Germany. However, many online brokers already offer so-called flat rates (for example US $ 15 per trade), which also makes trading on the US stock exchanges affordable.
If the private investor wishes to transfer the securities purchased in the USA to Germany and sell them there, additional fees may arise depending on the depository and the type of paper. If in doubt, it is worth asking the bank.
US securities can also be bought in Germany
Buying US securities on US stock exchanges such as the New York Stock Exchange (NYSE) or Nasdaq is not absolutely necessary anyway. Investors can also buy securities that are traded in the USA at low prices in Xetra trading, even if the trading volume is comparatively low.
It is important that the buy or sell order is given a limit and that the currency differences are taken into account in the order. The reason: stocks from the USA are listed in US- $, in Frankfurt and other German stock exchanges, however, they are traded in euros. This means that the investor has to convert the rate on the NYSE or Nasdaq into euros.
An example of this: Google shares, which are listed in Frankfurt at the same time, are traded at US $ 1,000 on the Nasdaq. The euro exchange rate is quoted at 1.38 against the US $. This results in a price of € 724.64 for the Google share in Frankfurt.
Securities USA - be aware of currency risk
When placing orders for US securities on the German stock exchange, it should be noted that the investor also takes on a currency risk. If the euro rises or the US $ falls if the share moves sideways, the overall value of the portfolio will decline.
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