If you ask anybody on the street how to accrue wealth, most people would answer, “you have to invest.” However, not everyone can answer what you should invest in.
There are several investment options in US markets to help you build your portfolio. However, did you know that there are several other markets in which to invest?
For example, you can use the Taiwan stock market index for foreign stock trading. This method allows you to build a portfolio on both a foreign stock exchange and a domestic one.
So, how do you get started with the Taiwan stock market? What crucial facts do you need to know beforehand?
If that’s what you’re asking, you’ve come to the right place! We’ll explore these questions in the guide below.
History of the Taiwan Stock Exchange
The Taiwan stock exchange (TWSE) began trading on February 9, 1962. The stock exchange is the equivalent of the New York Stock Exchange in the US, as it is the country’s primary place for buying stocks. Its headquarters are in the national capital of Taipei.
In the past, traders had to go to Taipei to purchase stocks. Nowadays, the system is much more global. In March 2020, the exchange introduced its current intraday continuous trading feature.
Now, international traders can purchase stocks much more freely. We’ll explore what you can get out of such transactions in the guide below.
Stock Trading in the Taiwan Stock Market Index Benefits
By investing in the Taiwan stock exchange, you gain access to several investment resources. These include:
- Taiwanese stocks
- Taiwan depository receipts
- Warrants
- Real estate investment trusts
- Indices
TWSE securities receive updates regarding margin trading statistics and short sales data. You also receive updates on TWSE listed companies, such as corporate announcements and disclosures.
Finally, you also receive another opportunity for accruing wealth. Anyone familiar with the US stock market knows how volatile it can be.
However, other countries face differing threats in their stock markets. So, even if the American markets suffer, your foreign markets may perform well. This gives you an extra chance to gain a profit.
Getting Started on the Stock Exchange
We’ll give you a brief overview of how to get started with trading Taiwanese stocks in this section. You can also check out the more thorough guide compiled by Monex.
The first step is to register an account with the Taiwan stock exchange. This registration provides your Investor ID and Tax ID.
From there, investors must open trading accounts with local securities firms. This way, you have a place to make purchases and store any money you gain.
Finally, you can begin trading. There are several options available for traders to make purchases.
However, the one that most foreign traders utilize is electronic-media-powered purchases. You can investigate other methods and find the one that works for you!
Start Trading Stocks Today
The Taiwan stock exchange index offers many opportunities for investors. So, get started today by registering your account!
We hope you enjoyed this article! If so, check out our other content today.