How to Invest in Japan, the UK and Europe From Latin America

Why look beyond Wall Street

Wall Street is home to the world's largest companies, but not all of them. Toyota, Sony, Shell, AstraZeneca and ASML are global leaders headquartered in Japan, the UK or Europe. Investing in other regions gives you access to different sectors and companies, and spreads your risk across economies that don't always move together.

The cost is more complexity: other currencies, other trading hours and other taxes. That's why it makes sense to start with the simplest routes.

Route 1: foreign companies listed on Wall Street

Many large foreign companies also trade in New York, in dollars and during US hours. Some do it through ADRs (certificates that represent their shares) and others list their shares directly:

We mention them as examples of how this works, not as recommendations. The advantage is that you trade them from the same Wall Street account; the limitation is that only the biggest companies are available.

Route 2: regional ETFs

An ETF gives you a basket of companies from one country or region in a single purchase. Some US-listed examples:

• EWJ: iShares MSCI Japan, Japanese companies.
• EWU: iShares MSCI United Kingdom, British companies (0.50% annual fee).
• VGK: Vanguard FTSE Europe, companies from developed Europe (0.06% annual fee).

Keep in mind that US-domiciled ETFs count toward the US estate tax. If that concerns you, there are Ireland-domiciled UCITS versions; we explain this in the guide how to invest in US stocks from abroad.

Route 3: buying directly in Tokyo, London or Europe

Some international brokers, such as Interactive Brokers, give you direct access to the Tokyo Stock Exchange, the London Stock Exchange, Euronext and Xetra (Frankfurt). That lets you buy companies that don't trade in the US. What you need to know:

• Japan: shares are bought in lots of 100. Since each share can cost thousands of yen, the minimum purchase is often high; according to the Japanese exchange, in January 2025 the median was around 157,650 yen, although more and more companies are splitting their shares to bring it down.
• United Kingdom: most shares are quoted in pence (100 pence = 1 pound). When you buy shares of British companies you pay a 0.5% stamp duty; ETFs are exempt.
• France and Italy: both charge a financial transaction tax when you buy shares of their large companies: 0.4% in France since April 2025 and 0.2% in Italy since January 2026.

Trading hours in Guatemala time

Guatemala doesn't change its clocks, but Europe and the UK do (from late March to late October) and Japan doesn't:

Tokyo trades during your night and Europe during your early morning, so to trade directly you'll rely on limit orders and stop-loss orders that you leave in place. If you'd rather trade during your own hours, routes 1 and 2 trade during the Wall Street session.

Taxes and currency risk

This is general information, not tax advice.

• Japan withholds about 15% (15.315%) of dividends on listed shares from foreign investors, unless a treaty sets a lower rate.
• The United Kingdom generally doesn't withhold tax on dividends.
• Dividends from US-listed ADRs and ETFs follow US withholding rules. Your country may also tax these investments depending on your tax residence.

The exchange rate can matter more than the stock. If you buy in yen and the yen weakens against the dollar, you lose money even if the stock rises in yen. A real example: the yen went from about 150 per dollar in October 2022 to more than 160 in April 2024, its weakest level since 1990. The same applies to the pound and the euro.