How To Buy Stocks in Turkey
To buy stocks in Turkey you need to: choose a well-regulated online stock broker, sign up for an account, deposit funds, research companies, place orders online, and monitor investments.
The realm of stock markets offers a pathway to grow your wealth with a fraction of your balance. In this landscape, the New York Stock Exchange (NYSE) and NASDAQ stand out globally. Whether you're an experienced investor or new to investing, entering the stock market can strengthen your portfolio.
This guide by Traders Union navigates the process of investing in stocks from Turkey. With a plethora of reputable online brokers catering to Turkish clients, you'll discover the means to tap into stocks not only from Turkey but also from diverse global markets.
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1. Choose an online stock broker
To begin investing in stocks, you need to select an online stock broker. Look for a broker that offers a user-friendly interface, low fees, good customer service, and a wide range of investment options. It is essential to ensure that the broker is regulated and operates within your country's jurisdiction.
For beginners, brokerages with extra benefits such as social trading can be invaluable as they offer opportunities to learn from experienced traders, as well as study best strategies. Additionally, access to comprehensive educational resources, fractional shares trading, and a diverse range of ETF investment options can further empower beginners in making well-informed and diversified investment decisions.
2. Sign up for an account
Once you have chosen a suitable broker, you'll need to sign up for an account. The registration process typically involves providing your personal information, which may include:
Your full name
Address and contact details
Date of birth
Social Security number (or equivalent)
Proof of identification (such as a driver's license or passport)
Employment and material status information is optional
Keep in mind that some brokers might require mandatory verification of your identity and documents.
3. Make your first deposit
To pay for the stocks you want to purchase, you'll need to deposit funds into your brokerage account. Most brokerages offer various funding options, such as bank transfers, credit/debit cards, or wire transfers.
Bank Transfers: Usually free or low-cost, but may take a few days to clear
Credit/Debit Cards: Instant, but may involve additional fees
Wire Transfers Instant, but may involve additional fees
How much money should I deposit for the first time? TU experts recommend starting with a small amount to understand the stock market and gain practical experience.
4. Choose the stocks you want to buy
With your account funded, it's time to choose the stocks you want to buy. You can use your brokerage's research tools or other financial websites to gather information about potential investments. Take into consideration factors like your budget, risk tolerance, and long-term investment goals when making your decisions.
If you are inclined towards long-term investing, it is essential to focus on conservative trading strategies, prioritize portfolio diversification, and thoroughly understand the businesses of the companies you invest in. On the other hand, if you prefer active trading, consider learning technical analysis or other techniques to make informed decisions and navigate the dynamic nature of the stock market effectively.
5. Place your orders to buy stock
There are different types of orders you should understand:
Market order executes the buy order at the current market price. It prioritizes execution speed over price, ensuring immediate execution
Market order use case: Investors who want to enter or exit a position quickly, especially in highly liquid stocks.
Limit order sets a specific price at which the investor is willing to buy or sell a stock. It allows investors to control the price at which the trade will execute, offering price protection
Limit order use case: Traders who want to buy or sell at a specific price and are willing to wait for the market to reach that price.
Stop order (stop-loss order) executes the order when the stock reaches a specified price. Stop orders are used to limit potential losses by triggering a sale if the stock's price moves unfavorably
Stop order use case: Traders who want to protect their investments from significant price declines.
6. Monitor your investments
The stock market can be volatile, and the value of your holdings may fluctuate. Stay informed about the companies you've invested in and keep an eye on market trends. Remember that investing is a long-term endeavor, and it's essential to review and adjust your portfolio periodically based on your financial goals and risk tolerance.
By following these steps and staying informed, you can start your journey into the world of online stock investing. Remember that investing involves risks, and it's crucial to do thorough research and seek professional advice if needed. Happy investing!
How do I sell my stocks in Turkey?
Selling your stocks in Turkey involves a few steps. First, you need to open a brokerage account with a reputable Turkish brokerage firm if you don't already have one. Once you have created and logged into your account, find the stocks you want to sell and select the "sell" or “trade” option. You will then need to specify the number of shares you want to sell and the price at which you're willing to sell them. The order will be automatically sent to the market, the transaction will be executed, and your stocks will be sold instantly. It’s important to understand that the process may be slightly different depending on the brokerage firm you choose and the specific requirements of the Turkish stock market. It's a good idea to stay updated on the market and be prepared for potential price fluctuations.
Best stock brokers in Turkey
What are the benefits of buying stocks in Turkey?
Buying stocks in Turkey can provide investors with several benefits. Below are a few advantages that TU analysts have specifically highlighted:
Capital growth: When you buy stocks, you have the opportunity to earn capital appreciation as the value of the stock increases over time. If the company performs well, the stock price may rise, which will allow you to sell the shares at a higher price and make a profit
Dividend income: Many companies in Turkey give out a portion of their profits as dividends to shareholders. By investing in dividend-paying stocks, you can earn a regular income stream in the form of dividends, providing you with a steady passive income stream
Diversification: Investing in Turkish stocks can be a way to diversify your investment portfolio. By spreading your investments across different companies or stocks, you can reduce the risk associated with having all your eggs in one basket. Doing this can help you smooth out the volatility of your portfolio and potentially enhance the long-term returns of your investments
Ownership and influence: When you buy stocks, you become a partial owner of the company. As a shareholder, you have certain rights, such as voting on important company matters and attending annual general meetings. This ownership gives you the opportunity to have a say in the company's decisions and potentially influence its direction
Is it safe to buy stocks online?
Yes, in general, stock investing is safe, but you should learn some basic safe investing rules that will help protect your money.
Research and select a well-established, reputable online brokerage platform with a track record of security and customer satisfaction
Buy stocks using a secure internet connection, preferably your private home network, to reduce the risk of unauthorized access or data interception
Create strong and unique passwords for your brokerage account, incorporating a combination of letters, numbers, and special characters
Enable 2FA whenever possible. This adds an extra layer of security by requiring a second form of verification, such as a code sent to your mobile device, before accessing your account
When funding your brokerage account or making transactions, use secure payment methods such as bank transfers or credit cards. Avoid sharing credit card details directly with third parties
Be cautious about sharing unnecessary personal information online, especially on social media platforms, to minimize the risk of identity theft or fraud
Keep a close eye on your brokerage account's activity. Regularly review statements and transaction history for any unauthorized or suspicious transactions
Educate yourself about common stock frauds and phishing attempts related to stock trading
Can Turkish individuals trade stocks with international brokers?
Yes! Turkish individuals have the opportunity to trade stocks with international brokers that grant access to worldwide stock markets. Numerous international brokerage firms furnish trading platforms and services, enabling individuals from diverse nations, Turkey included, to partake in investing in stocks featured on foreign stock exchanges. In order to ensure a secure investment journey, TU experts suggest that individuals partner with reputable companies like eToro, which adhere to strict regulatory standards and also provide a trustworthy trading environment for investors.
What is the minimum stock investment in Turkey?
The minimum stock investment requirement in Turkey can be different depending on the brokerage and the stock exchange. Generally, the amount needed to start trading stocks in Turkey can range from a few hundred Turkish liras to several thousand liras. Some brokerages might also have certain minimum deposit requirements when opening an account. You should analyze different brokers, their rules, and their requirements to determine the minimum investment that suits your budget and investment goals. Keep in mind that while you can start with a small amount, having a larger capital can provide more flexibility and better risk management when trading or investing in stocks.
Can I trade fractional shares?
Yes, you can trade fractional shares in Turkey. Fractional shares allow you to invest in a portion of a single stock even if you don't have enough money to buy a whole share. This offers flexibility and accessibility for investors with smaller budgets. Brokers like eToro and some others provide the option to trade fractional shares, enabling you to invest in well-known companies without needing to pay the full price of a share. This way, even if you don't have enough money, you can invest in different stocks and have more chances to grow your money in the stock market.
Is stock trading haram?
Whether stock trading is haram or not in Islam depends on different opinions. Some say it's okay if done in a certain way that follows Islamic rules. Others say it's not allowed because it might involve things like guessing or interest. The decision often depends on whether the companies you're investing in follow Islamic principles and if you're trading in a fair and ethical way. If you're a Muslim thinking about stock trading, it's a good idea to stick with stock brokers that offer Islamic accounts.
Are capital gains or dividends taxable in Turkey?
In Turkey, both capital gains and dividends are subject to taxation. Capital gains tax is applicable to the profits obtained from the sale of assets such as stocks, real estate, and other investments. The tax rate for capital gains in Turkey can vary depending on the type of asset and the holding period, with a maximum rate of 20%. However, certain exemptions and deductions might apply. Meanwhile, dividends distributed by Turkish companies to their shareholders are subject to a withholding tax. The withholding tax rate for dividends is 15% for residents of Turkey and 20% for non-residents. This tax is typically withheld at the source before the dividend is paid out to the shareholder.
FAQs
Can a foreigner invest in Turkey?
Yes, foreigners can invest in Turkey across various sectors, including real estate and industries. The Turkish government encourages foreign investment, but understanding regulations and seeking professional advice is important for a successful investment experience.
Is trading legal in Turkey?
Yes, trading is legal in Turkey. The country has established regulatory frameworks for various types of trading, including stocks, forex, and commodities, under the supervision of relevant authorities such as the Capital Markets Board of Turkey (CMBT) and the Banking Regulation and Supervision Agency (BRSA).
Can you buy American stocks in Turkey?
Yes, you can buy American stocks in Turkey through international brokerage platforms that provide access to global stock markets. These platforms allow you to invest in U.S. stocks just like you would with stocks from Turkey, providing opportunities for cross-border investment.
Is it worth it to invest in Turkey?
Yes, investing in Turkey can be rewarding due to its varied economy and incentives. However, thorough research and professional advice are essential for informed choices.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).