More and more investors are buying international stocks. Hargreaves Lansdown reported a 40 per cent increase in the number of people buying overseas shares in the first half of last year, compared with the previous year, and interactive investor said the number of international trades on its platform doubled in the same period.
For those investing in international securities, it might be worth considering cheaper options. This won’t be suitable for everyone – the established platforms have large customer service teams, and keeping your portfolio in one place can be less cumbersome for portfolio management and tax returns.
One investor wrote to me recently saying he has an individual savings account (Isa) with interactive investor in which he has 13 stocks listed on the New York Stock Exchange, one in Brussels, one in Frankfurt and 12 in London. Over the past year he said he’s paid approaching £5,000 in foreign exchange fees on just 43 transactions.