Things to Know About International Stock Investment: A Basic Guide for Vietnamese Investors

Why Does International Stock Market Attract Vietnamese Investors?

Modern financial technology has eliminated geographical barriers in stock trading. With just one click, you can access global financial markets—from US stocks, European indices, to commodities and cryptocurrencies. This opens up opportunities to diversify your portfolio beyond the Vietnamese market, where investors are seeking higher returns and diversification.

However, not everyone understands how the international stock market operates or knows how to choose a reliable trading platform to start their investment journey.

Common Scams and How to Avoid Them

The international stock market is not a game of chance, but it is a place where bad actors can find victims. Many new investors encounter illegal or non-transparent trading platforms. Here are common tricks to watch out for:

Misleading product definitions: Some platforms do not clearly explain the differences between underlying stocks, derivatives, or other products. This ambiguity causes investors to misunderstand what they are investing in, leading to poor risk management and unwanted losses.

Unlicensed activities: Fake platforms, those lacking legal licenses or operated by unrecognized organizations, will lure investors to open accounts, deposit funds, then “disappear” with your assets.

Unrealistic profit promises: If you see advisory groups constantly sending images of “very high” profits and urging you to deposit more money to “win bigger battles,” that is a clear warning sign.

Understanding International Stocks via CFD

When you invest in international stocks through reputable international platforms in Vietnam, you are essentially participating in the (CFD) (Contract for Difference) market. This means you do not directly hold stocks or indices, but instead profit from the difference between the buy and sell prices of assets such as US stocks, UK, France, Germany, Japan indices, and many other countries.

Basic criteria for choosing a reputable international stock trading platform include:

• Safety (clearly licensed by international regulatory agencies)
• Potential profitability (based on historical performance of assets)

International Stock Performance in 2024

Data shows that international stock markets have very different growth rates. Here are some notable indices:

The CAC 40 (France) increased by 6.6%, reflecting the stability of France’s top 40 companies. The DAX (Germany) rose by 6.05%, indicating the health of Frankfurt’s financial market.

The S&P 500 (USA) grew by 8.74%, composed of 500 large-cap companies listed on NYSE and Nasdaq. The Nikkei 225 (Japan) was the winner with an impressive increase of 19.86%, reflecting Japan’s strong economic recovery.

The FTSE 100 (UK) only increased by 0.02%, and Hang Seng (Hong Kong) rose by 0.01%, showing these markets face challenges.

Leading tech stocks like Microsoft, Apple, Amazon, Google, and Tesla have seen significant growth, with Tesla leading with over 3.5% increase recently.

Asset Types You Can Invest In

Through international stock trading platforms, Vietnamese investors can access three main asset classes:

US Stocks: Including companies in the S&P 500 like Tesla, Apple, Microsoft, Amazon, and Google. These companies have strong international brands and long-term growth potential.

Stock Indices: Such as S&P 500, DAX 40, FTSE 100, and Nikkei 225, allowing you to participate in the performance of entire markets rather than individual stocks.

ETF Funds: Some platforms offer ETF trading, although with lower leverage ratios (usually 1:5).

The advantage of CFDs is that you can profit from both rising and falling prices (T+0 trading), suitable for proactive investors with market analysis experience. This is different from underlying stocks in Vietnam, where profits are only from price increases.

International Stock Trading Hours

Trading hours vary depending on each country’s time zone:

USA (NYSE & NASDAQ): From 20:30 to 2:00 Vietnam time (standard session). Pre-market from 19:00-20:30 and after-hours from 3:00-5:30.

Japan (JPX): Morning session 11:00-13:30, lunch break 13:30-14:30, afternoon session 14:30-17:00 (Vietnam time). Trading from Monday to Friday.

UK (LSE): From 14:00 to 22:30 Vietnam time, Monday to Friday.

Hong Kong (HKE): From 8:30 to 15:00 Vietnam time, Monday to Friday.

Germany (FWB): From 13:00 to 1:00 Vietnam time, Monday to Saturday.

Australia (ASX): From 7:00 to 13:00 Vietnam time, Monday to Friday.

Canada (TSX): From 20:30 to 2:00 Vietnam time, Monday to Saturday.

The advantage of international derivatives markets is the extended trading hours, allowing more flexible scheduling for work and trading. Note that some countries change their clocks seasonally (summer and winter), so trading hours may be an hour longer in summer than in winter (except Hong Kong and Japan).

Factors Affecting International Stock Markets

When investing, you need to monitor the following factors to make effective buy/sell decisions:

Political developments: Election events, diplomatic conflicts, protests can significantly impact markets. For example, the Russia-Ukraine war in 2022 affected global finance, or coups in certain countries caused local index declines.

Legal regulations: Understand regulations to ensure legal investment. Note that Vietnamese law does not permit individuals to directly buy/sell foreign underlying stocks, but CFDs are a legal form.

Economic and social conditions: Monetary policies, interest rates, inflation, GDP growth all influence markets. When governments lower interest rates, companies have opportunities to expand, leading to stock price increases.

Unexpected events: Pandemics, natural disasters, technological failures can cause strong volatility. COVID-19 caused continuous declines worldwide.

Specific industries and companies: Some sectors benefit in certain situations. During COVID, healthcare grew while travel and aviation declined sharply.

Investor psychology: Market optimism or pessimism (law of supply and demand) directly affects stock prices. Fear can cause sell-offs, while optimism encourages buying.

Practical Tips for International Stock Investors

Choose reputable trading platforms: Prioritize those with clear licenses from international regulatory agencies. Compare transaction costs such as deposit/withdrawal fees, commissions, overnight fees to maximize profits.

Stay updated on market news: Continuously follow economic, political developments, and global trends to predict their impact on your assets.

Combine multiple analysis methods: Use both technical and fundamental analysis along with socio-economic context for informed decisions.

Focus on familiar sectors: Instead of overly diversifying, concentrate on stocks you understand well for better insights.

Develop strategies and risk management: Set clear investment plans, risk management principles, and adhere to them strictly. Emotional control is key to avoiding impulsive decisions.

Persistently learn: Accumulate experience over time, learn from your mistakes to avoid repeating them.

Conclusion

The international stock market is a vast playground offering significant profit opportunities for daring investors. The key is to choose a reputable and licensed international stock trading platform in Vietnam, combine it with a sound investment strategy and self-discipline.

Understanding the top 10 international stock platforms in Vietnam not only helps you avoid scams but also enables you to seize truly valuable investment opportunities. Knowledge and experience will gradually accumulate as you participate in the market—there are no “quick secrets.” Start with thorough preparation, strict risk management, and patience in learning.