Since the beginning of the year, the procedure of currency transactions has been simplified for Ukrainian citizens. The changes also affected the purchase of shares and securities on a foreign stock market. Instructions for investors will be useful for the success of undertakings in this area.
How to start earning on shares: instruction for an investor
The new law has made it easier for Ukrainian citizens to operate on the international stock market. To withdraw funds to another country, you do not need to obtain special licenses. An individual has the right to transfer up to 50 thousand euros abroad within a year, and a legal entity – not more than 2 million euros.
The Ukrainians have already managed to appreciate all the advantages of the innovations. Since the beginning of the year, domestic banks have received 285 requests for electronic currency withdrawal limits. 43% of them were invested in securities of foreign companies. The U.S. market attracts citizens, 27% of funds have been invested in their organization, which is quite understandable by the profit that can be made by a large corporation like Amazon or Facebook. If you buy their shares for 10 thousand dollars and sell them in a year, you can get a profit of 10 thousand dollars.
In order to invest in foreign companies you do not need to leave Ukraine, you need to have an electronic limit. With its help, you can transfer money from a domestic financial institution to a bank in another country. Most often e-limit is used to replenish a foreign account, to buy real estate or securities, life insurance.
For the limit, it is necessary:
- a statement to the bank stating the purpose of the money transfer;
- to provide documents that indicate the source of income. This can be an electronic or tax return..
Evidence of sources of income may include salaries, incentives, capital from the sale of property, inheritance and others.
Money transfer involves a commission of 0.5% to 1% of the total amount.
It should be understood that cancellation of the currency license does not eliminate the need for financial monitoring and control. Foreign banks are responsible for clients’ trustworthiness and legality of their funds.
In order to start investing activities, the best option would be to apply for assistance from an intermediary licensed by the National Commission on Securities and Stock Market.
The funds will be transferred to the broker from an account opened with a foreign bank. To open a brokerage account, you need a minimum capital – 10 thousand dollars. Further, an agreement is made out for the provision of securities storage services. After the whole procedure you can start investing in various foreign companies.