Category: FAQs

FAQs

The best ISAs for international stocks 2012

Post author By Cris
Post date April 16, 2012
No Comments on The best ISAs for international stocks 2012

The tables in this post have been updated with new fees and brokers in the Best ISAs for foreign stocks – October 2012 update.

[Updated 23/04/2012 to include the ISA available from Saxo Bank on its Modern Wealth Management platform]

As we saw previously, the mark-up that many stock brokers put on currency conversions can be a very significant extra cost when trading international shares. And while you can’t ignore these hidden fees at any time, they become an especially awkward problem for UK investors who want to buy foreign stocks within an individual savings account (ISA) tax wrapper.

While the ISA rules allow a reasonably large number of overseas stocks, they do not allow you to hold any foreign currency – so you need to go through the conversion between sterling and foreign currency every time you trade. As a result, excessively high FX commissions can become costly even more quickly than usual.

So what are the most cost-effective ISAs for dealing in foreign stocks? The table below shows the charges for the main UK execution-only brokers that offer ISAs and allow foreign stocks in them. (Some major firms – eg Interactive Brokers – don’t offer an ISA at all, while others – eg Barclays Stockbrokers – currently only allow UK shares to be held in one.)

Tags discount brokers, isa, stockbrokers, uk

FAQs

The hidden cost of currency conversions

Post author By Cris
Post date April 9, 2012
No Comments on The hidden cost of currency conversions

When you’re trading international stocks, it’s not only the charge for buying the shares that matter. The charge for buying the foreign currency the shares are quoted in can also be very significant.

At some stock brokers, this FX commission can be higher than the commission on stocks. And many brokers try to make their rates look better by hiding it deep in the small print or even not mentioning it at all.

This is particularly a problem in the UK, although investors everywhere should watch out for it. For example, take TD Direct Investing (formerly TD Waterhouse UK). It charges a standard rate of £12.50 per trade for international stocks. On an investment of £1,000, that’s a commission of 1.25%. But TD Direct will also charge up to 2% over the interbank rate for converting your currency – almost twice the headline stock commission.

To be fair to TD Direct, it displays its currency charges more clearly than many rivals. But while they may be transparent, they’re certainly not trivial. Charges like that will mount up pretty quickly, especially if you’re an active trader. So minimising your FX commissions is an important part of keeping your costs down and improving returns.

Tags currencies, discount brokers, fx transfer, stockbrokers, uk

FAQs

UK stockbroker accounts for non-residents

Post author By Cris
Post date December 31, 2011
79 Comments on UK stockbroker accounts for non-residents

One regular question about the UK online stockbrokers list and UK international stockbrokers list is whether any UK stockbrokers will open accounts for non-residents.

Generally, many of the UK stockbrokers are not very helpful on this score, due to a combination of money laundering regulations and a tendency to regard overseas clients as a hassle. (The same problem is true for non-residents wanting to open an UK bank account.)

There are a handful of UK stockbrokers that indicate they will deal with non-residents, but investors report different levels of success opening and using accounts. It may depend on whether you are a UK citizen but non-resident, whether you are neither a citizen nor a resident, whether you are resident in the European Union (EU) or European Economic Area (EEA), whether you have a UK bank account and even who you speak to at the company.

The following firms have been reported to open online trading accounts for at least some non-residents and are probably worth investigating first:

Tags discount brokers, non residents, stockbrokers, uk

FAQs

Tax on Singapore stocks for non-residents

Post author By Cris
Post date August 7, 2011
4 Comments on Tax on Singapore stocks for non-residents

This article is about Singapore stock brokers and tax for non-residents. Looking for a stock broker in Singapore instead? Read this comparison of the best Singapore brokers and articles on opening a bank account and opening a brokerage account there.

I’ve often get questions about tax on stocks for non-resident investors who have a Singapore stock broker account. The answer is both simple and good news for most investors.

Singapore is an extremely low-tax jurisdiction and if you are non-resident, you should end up paying nothing to the local tax authorities – although obviously you may still owe taxes in your home country.

Tags international investing, singapore, tax

FAQs

The best international stock brokers 2011

Post author By Cris
Post date August 7, 2011
14 Comments on The best international stock brokers 2011

International stock brokers can be very inconsistent. Some boast about the ability to trade a handful of markets, while other firms barely mention that they can invest in dozens.

That’s why I put together the international stock brokers list on this site to help investors compare all the firms in detail. But the list is now rather long and going through it to pick out the best stock broker for your purpose can take some time.

So many readers have asked to me to condense it down to a few top picks. And that’s what this article is for. I’d still definitely recommend you read the full guide, since every investor is looking for something different. What I’ve picked here may not suit you.

But if you’re trying to pick one or more international stock brokers to let you invest in as many stock markets as possible at low cost and with low hassle, the firms below are the ones to look at first.

Tags international investing, stockbrokers