The Easy Way to Invest In Emerging and Frontier Markets

1681

List of International Stock Brokerages Trading in Emerging and Frontier Markets

How do I invest in Emerging or Frontier Markets?

We get this question a lot, and our usual response is to open an account with a local brokerage firm in the country people want to invest in. We have created a series of posts detailing the steps required to open these accounts, but the easy way to invest in emerging and frontier markets is to have a one-stop shop type account. To do this, you need to find a brokerage firm that trades in both emerging and frontier markets.

We have compiled a list of international brokerage firms that are able to deal in multiple emerging and frontier markets using one brokerage account. We may not have tried these brokerages ourselves nor are we recommending them, so the usual rules of caution apply when deciding to use their services.

We will look to update this list periodically, so if you notice any omissions or missing markets please e-mail us or leave a comment below.

*Updated on 17 March 2015 to include Mubasher (Thanks Philip!)

For Retail Investors:

Interactive Brokers

Based in: Connecticut, USA
Minimum Account Opening Amount: $10,000 USD

Available EM & FM Stock Markets: (5)
Czech Republic*, India, Mexico, Singapore, South Korea
*Through CFDs

Interactive Brokers is massive and operates across most developed markets. Given their size and scope, they also offer stock trading in 5 emerging market countries, but their frontier market exposure is still lacking.

Mega Equity

Based in: Cyprus
Minimum Account Opening Amount: $10,000 USD

Available EM & FM Stock Markets: (17)
Bulgaria, Czech Republic, Cyprus, Greece, Croatia, Estonia, Hungary, Israel, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovenia, South Africa, Turkey

We first found Mega Equity when researching our post on How to Invest in Cyprus. Due to lax regulation, Cyprus is a hub for brokerages, and Mega Equity was one of the larger ones we found. They offer full access to Greece and Cyprus, and access to select stocks in 15 other emerging or frontier market countries. The full list can be found at their website here. They also offer a range of other products such as FX trading and CFDs.

Boom Securities

Based in: Holding company is from Japan
Minimum Account Opening Amount: $0 USD

Available EM & FM Stock Markets: (8)
China, Indonesia, Malaysia, Philippines, Singapore, South Korea, Thailand, Taiwan

Boom Securities was one of the first online brokerages in Asia, and focuses on emerging market countries in East and Southeast Asia. The fees are reasonable and there are no minimum account opening amounts, so they seem like a reasonable way of accessing EM Asia equity markets. Unfortunately no frontier markets or South Asian countries are offered.

Mubasher Trade

Based in: Bahrain
Minimum Account Opening Amount: None specified

Available EM & FM Stock Markets: (16)
Bahrain, Egypt, India, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sri Lanka, Tunisia, Turkey, UAE

Mubasher is one of the leading regional brokerages in the Middle East and provides access to all markets in the region as well as some in South Asia. They provide retail brokerage services through Mubasher Trade, and also cater to institutional clients through the parent Mubasher Financial Services group.

For High Net-worth Individuals or Institutional Investors:

Euro Pacific Capital

Based in: Connecticut, USA
Minimum Account Opening Amount: $100,000 USD

Available EM & FM Stock Markets: (23)
Argentina, Brazil, Chile, Colombia, Costa Rica, Kenya, Malaysia, Mexico, Morocco, Nigeria, Panama, Peru, Philippines, Russia, Singapore, South Africa, South Korea, Taiwan, Thailand, Turkey, Tunisia, Venezuela, Zimbabwe

This US firm also offers managed accounts with minimum $50,000 USD deposits, as well as gold certificates and CDs. Their commentary and mission statement seem extremely bearish on the US in order to push American investors towards foreign markets, but it looks like investing across the globe is their specialty.

African Alliance

Based in: South Africa, but founded in Swaziland
Minimum Account Opening Amount: High net worth & Institutional clients

Available EM & FM Stock Markets: (25)
Botswana, BRVM (Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo), Egypt, Ghana, Kenya, Malawi, Mauritius, Morocco, Namibia, Nigeria, Rwanda, South Africa, Swaziland, Tanzania, Tunisia, Uganda, Zambia, Zimbabwe

African Alliance, as its name suggests, focuses on Africa and allows access to 25 different markets on the continent. It is a local investment bank that has a brokerage arm for HNW and institutional clients, and a good choice for those looking for exposure in only African securities.

For Institutional Investors:

Auerbach Grayson

Based in: New York, USA
Minimum Account Opening Amount: Institutional investors

Available EM & FM Stock Markets: (96)
Argentina, Armenia, Azerbaijan, Bahrain, Baltic Region, Bangladesh, Barbados, Benin, Bermuda, Bosnia, Botswana, Brazil, Bulgaria, Burkina-Faso, Cambodia, Chile, China, Colombia, Costa Rica, Cote d’Ivoire, Croatia, Cyprus, Czech Republic, Eastern Caribbean, Ecuador, Egypt, Estonia, Fiji, Georgia, Ghana, Greece, Guinea-Bissau, Hungary, India, Indonesia, Iraq, Israel, Jamaica, Jordan, Kazakhstan, Kenya, Korea, Kuwait, Laos, Latvia, Lebanon, Lithuania, Macedonia, Malawi, Malaysia, Mali, Malta, Mauritius, Mexico, Mongolia, Montenegro, Morocco, Namibia, Niger, Nigeria, Pakistan, Palestine, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Qatar, Romania, Russia, Rwanda, Saudi Arabia, Senegal, Serbia, Seychelles, Sierra Leone, Singapore, Slovenia, South Africa, Sri Lanka, Taiwan, Tanzania, Thailand, Togo, Trinidad & Tobago, Tunisia, Turkey, Uganda, Ukraine, UAE, Uruguay, Uzbekistan, Vietnam, Zambia, Zimbabwe

Auerbach Grayson is the most well-known and extensive frontier market brokerage firm in the world. It caters to institutional investors, and sold a minor equity stake to Morgan Stanley in 2013. They give access to 129 countries in total (96 in emerging or frontier markets), and is the closest we have to a one-stop shop.

Guzman & Company

Based in: Florida, USA
Minimum Account Opening Amount: Corporate and Institutional investors

Available EM & FM Stock Markets:
“All developed and emerging markets, and most frontier markets”

Guzman & Company has been a member of the NYSE since 1992 and offers brokerage services across the globe, although their website does not specify which countries.

 

 

photo credit: The Market Economy via photopin (license)

Leave a Reply