Want to buy foreign ETFs? Compare the 8 most popular brokers in 2024

In the current era, ETF investing has become an increasingly popular choice because it is convenient, has low risk, and allows easy access to international markets. But the questions are where can I buy foreign ETFs and what kind of broker should I choose. This article will help you understand the differences among 8 leading brokers and analyze their pros and cons.

Comparison of 8 Top Brokers for ETF Investment

1. KGI Securities: Cost-Effective Fees

KGI Securities is known for its low fees. The KGI Trade Online platform is designed for both beginners and professional traders.

How to buy and sell ETFs with KGI:

• Trade on the stock exchange: ETFs listed on the main exchange are highly tangible, with Bid-Offer spreads similar to stocks.
• Put-through: For those wanting to trade large volumes (1 Creation Unit or more), negotiate prices directly.

2. BBL Securities: Smooth Mobile App

BBL Invest, an app from BBL Securities, offers a seamless and convenient investment experience. ETFs can be purchased like regular stocks, but returns come from a diversified portfolio.

Advantages:

• Low minimum investment
• Diversify risk across multiple stocks simultaneously

3. Yuanta Securities: Free Research Program

Yuanta offers ETFs suitable for beginners, along with analytical tools via Yuanta Online.

Popular foreign ETFs include:

• S&P 500 ETF (SPY): Invests in 500 top US companies
• Vanguard FTSE Developed Europe ETF (VEA): Focuses on European stocks

4. Interactive Brokers: Leader in Diversity

Highlights:

• Over 13,000 ETFs available
• Minimum investment of $0
• $1 fee per trade

Research tools: IB provides a wide range of analytical tools to help make better decisions. The trading platform is fast and suitable for buying foreign ETFs.

5. Saxo Bank: First-Class Level

What makes it stand out:

• Over 18,000 ETFs from around the world
• Trading fees per transaction
• Advanced analytical tools on the platform
• Pays interest on cash balances

Saxo Bank is a good choice for those seeking comprehensive access to foreign ETFs.

6. Trading 212: Zero Commission

Fee policy:

• 0% commission on stocks and ETFs in European and US main markets
• Over 3,000 ETFs to choose from

Investors looking to save on fees should consider Trading 212.

7. Firstrade: Beginner-Friendly Partner

Highlights:

• 0% commission on US ETFs
• About 2,400 ETFs available
• Good educational tools

8. Mitrade: Flexible for Loss-averse Investors

What you need to know:

• Minimum deposit: $50
• Competitive fees
• User-friendly platform with analytical tools
• $100 bonus for new accounts
• Demo account: virtual $50,000

Types of ETFs to Know

Equity Index ETFs

• Based on SET50, S&P 500, Nikkei 225
• Suitable for diversification
• Examples: K-SET50, KETF-SET50

Commodity ETFs

• Invest in gold, oil, natural gas
• Good hedge against inflation
• Examples: GOLD-ETF, GOXD

Bond ETFs

• Yield from debt instruments
• Generate steady income, low risk
• Examples: THFIXED, TFixed50

Other Asset ETFs

• Real estate, digital assets
• New investment opportunities

Why Invest in Foreign ETFs

1. Access Global Markets Buy foreign ETFs and experience US, European, Asian markets simultaneously.

2. Diversify Risk With 100 baht, buy 1 ETF, which carries lower risk than buying a single stock.

3. Low Fees The large global role results in lower management fees compared to traditional funds.

4. Easy to Trade Buy and sell like stocks, no need for special accounts.

5. Suitable for All Investors Beginners can learn, experts can use for risk management.

Strategies for Investing in Foreign ETFs

Buy and Hold: Keep the Good Long-term

For beginners who don’t want to monitor the market, buy ETFs and hold for years, letting them grow.

Dollar Cost Averaging (DCA)

Invest a fixed amount regularly to reduce the risk of buying at high prices.

Rebalancing: Adjust the Portfolio

Quarterly, sell overperforming assets, buy underperforming ones, and keep the portfolio aligned with your goals.

Sector Rotation

Invest in sectors (Sector) expected to perform well during that period. Suitable for experienced traders.

Asset Allocation: Diversify Broadly

Invest across various asset classes (stocks, bonds, commodities) to reduce overall risk.

Factors to Consider When Choosing a Strategy

• Goals: Short-term or long-term?
• Risk Tolerance: High, medium, or low?
• Time Horizon: How long will you invest?
• Capital: How much money do you have?
• Knowledge: What is your level?

Steps to Choose the Right ETF

1. Define Your Goals What percentage return do you want, and in what timeframe?

2. Research and Compare Find ETFs aligned with your goals, review performance history, fees.

3. Check Costs Total fees, trading costs, service charges—how much?

4. Assess Risk Is the ETF’s (Volatility) suitable for you?

5. Review Performance History How have they performed over 3, 5, 10 years?

6. Study the Fund Manager Who manages the fund? Experienced?

7. Monitor Changes Management policies, team changes?

8. Make a Decision Ready? Start buying!

Summary

Investing in foreign ETFs today is not difficult; it can be done through various online platforms. But before deciding, consider:

• Fees: Compare and choose appropriately
• Convenience: Is the platform user-friendly?
• ETF Selection: Are there enough options?
• Support: Is customer service good?

Most importantly: Study, understand, and accept your risk tolerance. Investing involves risks, including potential loss. With knowledge and understanding, you can make better decisions.