I have my eyes on a company from Australia, for which the primary exchange is the Australian Stock Exchange (ASX). However, I found that the stock is also traded on the Frankfurt Stock exchange in Germany, and in the US as OTC/pink sheets. All these options are available through my broker (IBKR).
My question: Does it matter through which exchange I purchase the stock? Are there any considerations (except for the currency (Australian Dollar, EUR, or USD))? I also see that via IBKR there are different margin requirements between ASX and the other exchanges. I'm not sure if this is relevant if I just want to buy and hold though.
About me: I'm mostly invested in ETFs and don't have much experience in buying single stocks (except for two American ones that I bought ages ago and held since then). Living in Switzerland and using Interactive Brokers.
Cheers and merci
What are the considerations when a stock is offered on several exchanges in different countries?
byu/MonkeyMeMyself ininvesting
Posted by MonkeyMeMyself
3 Comments
In some jurisdictions, buying stock on a foreign exchange is taxed differently. There also may be some benefit to dealing with a stock denominated in your currency so that you don’t have to also factor in changing exchange rates on your own.
Currency and trading hours.
I always use the native exchange. Mainly for currency reasons. A little bit about market hours.