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Charles Schwab One Account

This US online brokerage giant now has two international brokerage services: The Schwab Global Account, open to US citizens and residents only, and the international trading part of its long-standing Schwab One Account. The firm has never really advertised the latter much, but it can deal in a very wide range of overseas markets, albeit by telephone during US hours only.

Schwab One Accounts are available to clients outside the US, although the minimum account size will be larger – US$25,000 for most markets, US$10,000 through the Hong Kong and UK arms. Overseas dealing is likely to have a minimum of around US$5,000 per trade for some markets.

The main snag with the service is cost. International dealing rates are 0.75% with a minimum of US$100. While this is lower than rates at the wirehouses, you can do better than that for many of the markets it offers – within the US, try Interactive Brokers, Fidelity or Schwab’s own US resident-only Schwab Global Account. On top of this, its correspondent stock brokers in the overseas markets will add their own charges, include FX conversion (since you can only hold US dollars within the account). That will vary by market, but it’s likely to add 0.15-1.5% depending on region (Europe will be cheaper, emerging Asia more expensive).

That said, while nobody I know well has used Charles Schwab for buying international shares, second-hand feedback says the customer service is very good. Certainly, I was impressed with the knowledge of its representatives when I enquired about opening an account. At this price, I’d still say look for a cheaper broker for the easy markets. But perhaps consider this firm for the more exotic ones if you trade in reasonable size and the US$100 minimum is bearable.

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iDealing

iDealing is a no-frills low-cost online stockbroker. One of its main selling points is that it’s one of very few UK retail stockbrokers to offer Direct Market Access to the London Stock Exchange (the other main ones are Interactive Brokers, Saxo Markets and more recently IG).

The firm also offers commission-free trading for Euronext Amsterdam, Brussels and Paris, passing on only the per-trade charges levied directly by the exchange. It will also deal in other CREST-eligible foreign stocks – ie, those can clear and settle through the UK securities depository – for additional European markets and the US, traded through UK market makers. Costs are commendably low compared with many UK peers, especially once FX charges are taken into account.

Be aware that iDealing charges a £60 fee to close or transfer out an account. This kind of closure fee is relatively standard among ISA providers, but not common for regular trading accounts.