How to buy Apple shares from Argentina?


 

Accessing the financial markets is very easy today. Technology allows it from anywhere in the world. Therefore, buying an Apple stock is achievable for everyone.


Alternative 1: buy Cedars


One possibility to buy Apple shares is to do so through Cedars. Cedars (Argentine Certificates of Deposit) are instruments that are listed on the Buenos Aires Stock Exchange and represent the listing of foreign companies.


The Cedars are purchased in pesos at the exchange rate of the Cash with Settlement (CCL). When listing in Argentina, it is not required to obtain an account abroad, but it is enough to have an account in some ALyC (formerly called Stock Brokers). In addition, dividends paid by the company are charged in dollars.


The interesting thing about these instruments is that they are tied to the Cash Settlement exchange rate (CCL), which is why they offer coverage against jumps in the dollar. This possibility allows staying dollarized. This means that if Apple in the United States remains neutral and the CCL dollar rises 10%, Apple's Cedar will increase 10%.


Alternative 2: buy directly in the US


For this you need to have an account with a broker (Stock Exchange) in the US and the transaction will be carried out in dollars. Logically you have to have previously deposited dollars in that account.


What broker can carry out this type of operation? Some names are Interactive Brokers, TD Ameritrade, Pershing, or even banks like UBS or Morgan Stanley. It is identical to buy the shares of Apple or any other company listed in the US through any of these or other participants.


Argentina vs the USA


What is the big difference between buying via Cedears or directly in the US? The volume transacted in the US is much higher.


The average daily volume for the last 3 months (in US $) of Cedar for Apple was 0.6 million, while in the US the volume was 9,000 million dollars. In the case of Mercado Libre, for example, it was 0.9 million in the Cedar and 600 million in the US. It is also worth noting that both Apple and Mercado Libre are the Cedars with the highest trading volume.


Operative


In order to buy Apple in the US, you need to open an account with a broker in the US (Sociedad de Bolsa). It is not a very complex task. Interactive Brokers and Ameritrade are the most important and allow online opening. After having the account you have to deposit money (funding). It can be done in two ways:

  • Transfer dollars from a bank account in the US / Uruguay (abroad), since from Argentina you cannot

  • Buy shares or Cedars in the local ALyC (Sociedad de Bolsa) and request the transfer to the stock company in the USA

One component to consider is operating costs. In Argentina, operations usually have a commission between 0.5% and 1%. On the other hand, in US brokers it is usually minimal (in some cases, as low as $ 10) and, as there is much greater liquidity, better buy and sell prices are achieved.


Conclusion


Investing in companies like Apple is within everyone's reach. Using Cedars is a very convenient and practical way to do it, although it is more expensive and rudimentary. If someone wanted to buy USD 100,000 in Apple from Argentina, they would have many problems since there is not enough volume.


In addition, through the execution platforms of the US brokers, you have many tools to operate like a true professional. Therefore, we recommend opening an account with a US broker, where you will find better prices, costs, and liquidity.

8 views0 comments

Recent Posts

See All