The way to buy foreign stocks is now widely adopted by people who want to start investing, even through online methods.

This approach is believed to be more cost-effective and relatively quick when conducting various types of transactions, especially for investing in foreign stocks in the world of forex trading through international stock brokers.

How to Buy Foreign Stocks

Previously, buying foreign stocks was considered quite complicated and difficult, which discouraged many people from trying it.

This was because the Indonesian Stock Exchange (IDX) does not have networks outside of Indonesia. As a result, individuals had to handle it on their own. Here’s how to do it:

  1. Find an International Stock Broker
  2. Access the website using a VPN to avoid blocks
  3. Install the application on your smartphone
  4. Start opening an account
  5. Fill out your personal information sequentially
  6. Proceed with the verification process
  7. Deposit funds first
  8. Buy the stocks

Detailed Steps for Buying Foreign Stocks

The basic and common steps to buying foreign stocks are outlined above. However, for more detail, several important aspects need to be considered, especially concerning personal data during the registration process to ensure that the stock purchase is conducted correctly.

  1. Opening a Foreign Stock Account
    Just like when you start buying stocks domestically, you first need to have an account to trade foreign stocks.

    Read Also: Guide to Trading Sharia Stocks

    This step can be considered as the registration or account creation process to deposit an amount based on your budget, so it should align with the broker you choose.

    • Choose an international broker
    • Complete the registration form
    • Provide necessary personal documents
    • Continue until the account is successfully accessed

    Some investment experts recommend that beginners should register their accounts in person rather than online.

    It's better to visit a securities company and ask about their system. Here are some documents you need to prepare:

    • ID Card: Passport, ID card (KTP), and KITAS (for foreign residents)
    • NPWP (Tax Identification Number)
    • KSEI (Indonesian Central Securities Depository) identity number
    • Photocopies of spouse's ID, NPWP, and Family Card (if a housewife)
    • 2-8 stamps of IDR 6000/10000

  2. Depositing Funds
    Once your account is successfully created, you can start depositing funds.

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    You’ll receive a confirmation email with your username, password, PIN, and account number. This deposit serves as your capital for buying foreign stocks later.

    • Deposit funds via bank transfer
    • Choose the bank you use for payment
    • Deposit the amount according to the minimum requirement of the chosen broker

  3. Using Online Trading Software
    After verifying your personal data and funding your stock account, you can start buying various stocks as desired.

    This should be done according to the broker’s advice. Consider the following before making a purchase:

    • Choose the online trading software or app recommended by the broker
    • Install it on your smartphone or laptop
    • Log in using your account
    • Check the recommended stocks to buy
    • Click the "Buy" menu to start purchasing
    • Monitor market conditions through the trading software
    • Check your balance before buying stocks

Buying Foreign Stocks from Indonesia

There are several software options for online foreign trading that you can choose from.

Usage instructions vary, so it’s important to follow them carefully to avoid mistakes, given the sensitivity related to financial matters.

  1. eToro
    The first way to buy foreign stocks online is through eToro. This trading website is considered a top choice for beginners looking to buy and sell stocks internationally.

    It offers features that make it easier for investors to conduct transactions in various forms. This makes it easier for novices to understand how to buy foreign stocks.

    Here’s how to invest in foreign stocks on eToro:

    • Open eToro on its website or app
    • Download it from the Play Store or App Store
    • Click "Create Account" to make an account
    • Click "Complete Profile"
    • Fill in your name, gender, and date of birth
    • Complete the form to open an account
    • Upload your ID documents
    • Upload a utility bill and scan your driver’s license
    • Enter your current address as per your ID
    • Your account will be successfully opened
    • Click "Deposit Funds"
    • Deposit funds through a local bank
    • Enter the amount you want to deposit
    • Click "Local Online Banking" to choose the bank
    • Click "Submit"
    • Enter your bank account username and password
    • Click "Continue"
    • Enter the code provided
    • Click "Confirm"
    • Click "Trade" to start buying stocks

  2. Saxo Bank
    Saxo Bank is a trusted website or app for buying foreign stocks. It specializes in Regtech and Fintech, connecting investors, traders, and partners with various products through a single account.

    Many Indonesians prefer this app over others. Here’s how to use it:

    • Open Saxo Bank on its website or app
    • Download it from the Play Store or App Store
    • Complete the registration form
    • Choose an account type: Classic, Platinum, or VIP
    • Start with a minimum deposit of $10
    • Choose spread and variable options
    • Use the bonus from the Leverage menu
    • Begin buying stocks by clicking "Trade"

    There are three types of accounts you can choose from when registering with Saxo Bank, each with its own features:

    • Classic Account:

      • Minimum deposit of $10,000
      • Competitive pricing
      • Best digital services and support
      • 24/5 account and technical support

    • Platinum Account:

      • Minimum deposit of $20,000
      • Tight commissions and spreads
      • 30% lower prices
      • Best digital services and support
      • 24/5 account and technical support
      • Priority support for Indonesian users in local language

    • VIP Account:

      • Minimum deposit of $1,000,000
      • Best pricing
      • Personal relationship manager in local language
      • Direct access to trading experts
      • Access to Saxo Strats
      • Exclusive invitations

Requirements for Buying Foreign Stocks from Indonesia

In addition to opening an initial account, there are several requirements to be prepared, especially if you are a beginner in international trading.

Although the procedure is not very different from mechanisms in Indonesia, understanding these requirements is crucial.

  1. Tax Declaration
    One essential requirement is signing the WEN (Wajib Pajak Luar Negeri), which is needed for international stock market transactions in the US.

    This must be completed, especially if you are not an American citizen. It’s often referred to as SKD WPLN or Foreign Taxpayer Domicile Certificate.

    Here are the requirements for obtaining this certificate:

    • Use the DGT form
    • Fill out the form accurately and completely
    • Signed equivalently by WPLN as per each country's regulations
    • Authorized by a competent official's signature
    • Include a statement that there is no misuse of P3B (Double Taxation Agreement)
    • Include a statement that WPLN is the beneficial owner
    • Use it within the period specified in the SKD WPLN

  2. Starting to Buy Stocks
    You can begin buying and selling stocks once the requirements are met, especially having an account.

    Here’s how:

    • Click "Trade"
    • Go to the stock trading dashboard
    • Click the stock you want to buy
    • Minimum purchase is $50
    • Choose "X1" for non-leverage purchase
    • Select commission-free transactions
    • Click "Set Order" to make the purchase
    • Check all transaction statuses through the trade report
    • Review stock ownership in the portfolio report

Buying foreign stocks can be done through various methods. You need to choose the method that best suits your expertise. One of the best solutions is selecting the right broker to facilitate all transactions.