You are here:

Shares: International share trading

Created:
30 June 2006
Written by:
Dominic Picarda

Investors in the UK today can buy or sell practically any share on any developed stock market the world over. From Canadian gold miners to Korean semiconductor stocks, electronic trading has created a single global market. Open a UK share-dealing account, and you can invest in nearly 25,000 different equities, funds and trusts. With a spread-betting account, you trade stock-market indices at the touch of a button.

Advertising

Investors in the UK today can buy or sell practically any share on any developed stock market the world over. From Canadian gold miners to Korean semiconductor stocks, electronic trading has created a single global market. Open a UK share-dealing account, and you can invest in nearly 25,000 different equities, funds and trusts. With a spread-betting account, you trade stock-market indices at the touch of a button.

The question is: should you? Is it any easier to make money by investing overseas than by sticking to UK stocks? That's the first big issue we address in this month's Masterclass.

Supposing there is no easy money to be had through investing abroad, is your portfolio any safer if you diversify your assets across international markets? Chris Dillow gives his provocative answers in 'Why the home bias'.

Then, the rest of this supplement splits into two parts. First, we look at the investment case for three key regions: the US; the , and the emerging markets of Brazil, Russia, India and China (the so-called BRIC countries).

Second, we explore the different ways that you can gain international exposure. If you want the upside of investing abroad without the currency risk, a is a good place to start. Because you bet on pounds per point, your profits (or losses) come in pounds, not dollars, euros or krona. But as with contracts for difference (CFDs) and covered warrants, spread-bets are normally best used for short-term trades. See for the low-down on who offers what.

So, for longer-term investors, we also make two practical suggestions. We explain how to buy international equities directly, plus how little you need to pay and what small print you need to watch out for. In addition, we look at your investment fund options. There is no space to review all the attractive overseas funds available, so instead our personal finance writer, John Mcleod, shows you how to research a fund.

However, if you want the most straightforward exposure to an international market, it is hard to beat an exchange-traded fund (ETF). These are trackers that follow the major stock market indices and sectors across the globe. Since there are over 500 ETFs, we could not list them all, so we have focused on the dozen or so that trade out of London. With one of these, a £12 dealing fee and an annual charge of 0.59 per cent buys you into the whole of the Japanese stock market. I bet your dad could never do that.

  • Back to top

Products and Services from Barclays Stockbrokers.

The UK’s No.1 Stockbroker

Stocks and Shares

Contracts for Difference

Financial Spread Trading

Gilts and Bonds

Funds Market

FX

Education Centre

Trading Simulator

Advertorial Feature

Spread your risks with spread trading

With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?

by Dominic Picarda