Trading Australian Stocks is fairly easy. You just need to have the right broker. Making profitable trades is a little harder. But before we get too far into brokers and trading you might be asking…
What is Special about Trading Australian Stocks?Trading Australian stocks meet all FIVE of my investment goal categories: Preservation of Purchasing Power, Capital Appreciation, Passive Monthly Income (via Dividends), Geopolitical Risk Protection, and Liquidity.
If you believe that US and European stocks are overvalued, as I do, and that gold mining stocks are undervalued, as I do, Australia presents, pardon the pun, a golden opportunity.
Australia is a stable jurisdiction that is gold mining friendly. It’s also relatively close to the biggest emerging markets in the world: India and China.
India and China are also some of the world’s largest purchasers of gold.
Why not just trade ADRs?
An ADR is defined by investopedia as follows:
An American depositary receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas.
If the Australian stock you want to buy IS available as an ADR through your existing broker you can save yourself the trouble of opening a new brokerage account.
But there ARE advantages to owning a stock directly on the exchange (instead of buying the ADR).
1) It costs banks money to create ADRs and they sometimes keep part of the dividend to cover these costs (Peter Schiff, Crash Proof 2.0)
2) Trading stocks on the local exchange can be more liquid (Tim Price, Price Value International)
3) The only way you can acquire many excellent value stocks is to purchase them directly on their “native” exchange. So if you limit yourself to ADRs you’ll miss out on opportunities.
While I do make some of my own stocks picks I also rely on competent professionals that I trust.
Which brings me to…
Price Value International
One such expert I look to is Tim Price.
Among many other accolades Tim boasts 25 years in the capital markets; 15 years as a discretionary multi-asset portfolio manager and was Chief Investment Officer at three successive firms. Tim is currently one of two principals at Price Value Partners and a columnist for MoneyWeek magazine.
Tim also has a monthly paid newsletter called Price Value International (PVI) in which he provides value stock picks of international companies. Tim hails from the UK which I believe helps adds to his unique perspective that is hard to find from asset managers closer to Wall Street.
I receive no financial benefit from Time Price or Price Value International by writing about his newsletter.
But I have been a Price Value International subscriber for over 10 months now and for me it has been worth every penny. As a result I want to share it with my readers.
You can sign up for the PVI newsletter at the following link: Price Value International.
Make Money Like Warren Buffet
Tim Price follows a methodology heavily influenced by “the father of value investing” Benjamin Graham. Graham developed investment strategies that Warren Buffet adopted to grow his fortune.
Using these methods Tim looks for high quality companies around the globe that trade close to or even less than their book value. It’s kind of like buying a house for $190,000, when building the same house would cost $200,000. Value investing provides built in downside protection and is a proven investing method.
Through the Price Value International newsletter Tim shares a new value stock recommendation each month. When you sign up you also get access to back issues so you can see recommendations from prior months.
The stocks range from firms throughout the world and two of them are traded on the Australian Stock Exchange.
I’d love to share the names of these stocks (both of which I own) but it would not be right to do so since I learned about them from Tim through his Price Value International newsletter.
But if you do sign up for PVI and/or decide you want to trade stocks on the Aussie stock exchange, I can provide you with the name of…
A Broker that allows you to trade directly on the Australian Stock Exchange
Most foreign brokers don’t accept US clients largely because of the onerous US laws foreign brokers would have to comply with if they did allow US citizens.
However, I’ve found a US based broker that allows you to trade directly on the Australian Stock Exchange.
This allows me to purchase an Australian stock recommended by Tim Price that I know for a fact is not available as an ADR.
This broker has no minimum account balance which is great if you don’t have a lot of capital to invest.
I DON’T get anything if you sign up for an account with this broker. It’s a firm that I personally have an account with and find valuable.
What is the name of the Broker?
I AM trying to gain more subscribers to my own FREE email newsletter where I talk about what I’m doing to grow my wealth. So while I’m more than happy to provide the name of the broker at no cost, in return I just ask that you sign up for the How I Grow My Wealth email Newsletter using the form below.
Again, out of respect for Tim I’m not going to share the name of any of his stock recommendations. Plus he might cancel my subscription and then I’ll miss out!
But I am happy to share the name of broker that I use.
I was able to start trading Australian stocks quickly. It took me less than a week to get my account setup and make my first trade.
To get instant access to the name of this broker simply sign up for my free email newsletter using the form below.