Do you know that you can buy international shares online as easily as you buy books or clothes from your favourite online shopping sites?
In today’s connected world many online stock brokers give you access to international markets and investing in international shares has become more accessible to investors across the world, although the costs can vary between brokers.
Why buy international shares?
Investing and trading international shares can deliver many benefits that may not be obvious to local investors. It’s because most investors have what is called “home country bias” which refers to the tendency to buy and sell stocks in their local market.
So, wherever you are based in the world, chances are you tend to trade or invest in the shares that are available on your local stock exchange. To a certain extent, there is nothing wrong about investing this way.
However, if you only invest in local shares, you are missing out on a lot of opportunities that are available in other markets. You are also likely to be missing out on the opportunity to maximise your risk management by spreading risk over a broader geographic range of markets.
Here are some of the benefits of buying and investing in international shares:
How to buy international shares online?
Buying international shares online is somewhat similar to buying any other item on online shopping sites. You simply need to set up an account with an online stock broker such as Monex Securities that can provide you with access to different international exchanges.
Key things to consider when buying international shares online
Trading platform check to make sure that the online trading platform of your chosen broker is easy to use and has all the necessary tools and risk management features that you require.
Different account types it is also best to check that the online broker offers different account types -e.g. private or individual account, SMSF account or trust accounts. This is important if you want to set-up different types of accounts to suit your investment and trading requirements.
Brokerage fee it is vital for you to know the brokerage fees and other charges when you buy international shares. These fees & charges should be included when computing your trading or investing costs.
Overall, buying international shares can deliver multiple benefits to your investment portfolio and help add value to your investment strategies.
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