Once you've decided to start investing in international shares, you have two key decisions to make. One, you need to find an effective, expedient, affordable way to execute and manage your portfolio. Fortunately, here at Monex Australia, we've already provided a way for you to do that. Our global network lets you easily trade in 12 international markets.
The second choice is where to trade. Currently, we have access to 50,000 securities. We can facilitate offshore stock trading in China, Hong Kong, Japan, Taiwan, Korea, Thailand, Singapore, Malaysia, Indonesia, and the Philippines as well as Australia. Brokerage fees start at just USD 9.99 and range between 0.1 - 0.3%.
Picking a particular Asian nation may be simpler than selecting Asia in the first place. Our multi-market watchlist will help you review opportunities and stocks in all ten markets on a single screen, and you can deposit funds, then buy or sell with a few clicks. But … why Asia?
There are two main viewpoints when it comes to securities portfolios. You could be a day trader, making your cash by juggling daily margins. You could also be a long-term investor, giving your portfolio time to mature. Many investors in Asian markets prefer the latter approach. It works well in developing markets like Indonesia and the Philippines.
In established markets like Japan, there are frightening statistics about a huge proportion of the population being over 65. However, we also hear about an increase in young unmarried citizens, who prioritise career and lifestyle over settling down. This demographic has a high spending capacity and a largely consumerist outlook.
This perspective stretches across Asian nations. Young people are boosting and utilising their buying power, and all that cash is moving around stimulating the economy. This makes Asia a good investment space because it means consumer industries are growing and there's more profit to go around.
In investment circles, Asia is considered an emerging market. Traditional finance giants like North America and Europe are experiencing political and social turmoil. From Trump in the US to Brexit in the UK to secession in Catalonia, things are shaking up. In comparison, Asia is fairly stable, which means investors are looking toward the Orient.
While Asian markets may seem smaller and less lucrative, some investors are a little more cautious given their experiences with the global recession. To some investors, it may make Asia seem like a safer place to invest, and as more money makes its way East, these young markets will soon expand, helping your Asian portfolio to develop some girth.
Culture is a defining factor as well. We've mentioned that young Asians are spending more, but they still have a stronger savings culture than their Western peers. And since family life is being shelved - either by choice or circumstance - financial decisions are increasingly being made at the individual level.
Translation: more singles with savings mean more car and home purchases in the future, as well as exotic vacation spending and investment in luxuries, thanks to reduced pressure from societal expectations (or nagging in-laws). These lead to a more stable economy and better returns for investors who made their bet on Asia.
To start your journey of investing in Asia, or to open an account, contact Monex Australia today.
*Trading times are limited by local jurisdictions. However, you can make a limit order even if your selected market is currently closed.