Investing in International Equities

So you’ve set up your online share dealing account, and understand all the associated risks and benefits of such a venture. If you’re looking into injecting a bit of added excitement into your online investment portfolio and investing in international equities looks very tempting indeed.

Trading in international equities may look like a glamorous option to leap into feet first, but there are a number of things that you will need to think about before deciding whether investing abroad is the right option for you.

Trading on the international stage, some key considerations.

1) Fluctuations in currency exchange rates may affect the value of returns or the capital value of your investment

2) Investment performance could be impacted by political and overall stability of the country, as well as local markets.

3) Your investment ventures are likely to be subject to the taxation rules of the country you are invested in.

If you think that investing on the international stage may be the right option for you the best place to start is by do some research of your own, in addition to any information provided to you by you online share dealing account provider. Information could prove invaluable especially if you are treading unfamiliar territory.

If you choose an execution only online share dealing account option you will retain sole responsibility for managing your investments. However, if you are unsure about the risks and potential of any investment venture you may want to speak to an independent investment advisor before proceeding.

Investing in international equities could bring the opportunity to invest on any one of up to 16 stock exchanges world-wide- so there is certainly a good scope for diversification potentially reducing overall risk to your investment portfolio. However, you should be aware that there is no guarantee that you will see a return on your investment or that you will get back all of what you put in. As with other investment options it is important that you consider all the risks involved, in order to ensure that your investment choices are well suited to your own circumstances and investment objectives.

Trading on a non-UK stock exchange can be complex for the novice. Nevertheless, trading in international equities does present the chance to diversify and add a little colour to your portfolio. Treated with due care and backed up with a good deal of research you may yet find the exciting opportunity that you were looking for.

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