Getting involved in the global stock market is a smart move for many traders. There are plenty of stocks available on domestic indices like the Australian Securities Exchange, however, global trading offers the chance to choose a much wider range of instruments to trade. Trends in the global stock market are making it easier than ever to be involved. The flow of market information is improving outside of Australia, for example, while stock markets around the world are fully embracing the web. Here, then, are just some trends to look out for in the global stock markets.
Information distribution
The first barrier that many Australians hit when trying to invest abroad is sourcing the market information they need to make informed trading decisions. English language stock and share tips for Australia have always been widely available, of course, but the same couldn’t always be said for many of the other stock markets around the world – so working out what to sell, hold or buy used to be quite hard.
But thanks to the proliferation of globalized international trading networks, there is now a trend towards making resources available – in English – through the Internet. It’s possible, for example, to read the business pages of the South China Morning Post to find out what’s going on in the lucrative Hong Kong market – and for those investors looking to wider mainland China, resources like these can also help to find approved brokers who can navigate China’s complex rules for foreign investors.
Role of the Internet
Perhaps the most significant recent trend in the global markets is the rise in Internet trading. For retail investors at least, it would be pretty unusual these days to make a trade in a global market without at least part of the trading process being conducted online. The global trend towards online trading may, in fact, even dissuade you from entering a “real” international stock market.
With contracts for difference (CFDs) and other derivative products, you can enter versions of global markets as far away as Europe without needing any special permissions. Sites like AvaTrade and ThinkMarkets cater to Australian customers, although there are plenty to choose from. There is a downside to the trend: it’s now easier for trading fraudsters to find their way into your wallets through the web, so you should always keep your wits about you.
The international trading market has changed in recent decades, and any Australian who enters it will quickly find that they’ve got a much larger range of choice than before. From export-rich Chinese firms to the thriving service sectors of Europe, international companies offer a lot to retail traders. And with globalization meaning that the worldwide stock markets are shifting firmly towards the proliferation of information and Internet-based platforms, there’s no time like the present for Australians to immerse themselves in the global trading scene.
