Broker the right deals when buying overseas shares
Investing in overseas shares can be rewarding, but keeping a close eye on foreign exchange costs is must to ensure maximum return on investment.
Andrew Woolley, executive director of international payments, runs through some key considerations:
“To keep foreign exchange costs to a minimum it’s wise to team-up with an overseas stock broker and a foreign exchange broker.
“For example, if buying US shares, working with a stock broker in New York and a foreign exchange broker in the UK can side-step the 2-3% margin charged by UK stock brokers when transferring currency.
“Foreign exchange brokers help investors understand their risk appetite and get the most out of their overseas investment.
“In addition, having an account with a foreign exchange broker means you can hold your foreign currency in an account for up to 12 months. This could help you make the most of a more favourable rate down the line.
“Always take into account the risk your dividends face in response to exchange rate movements, as it can be difficult and costly for investors to predict currency movement.
“There is opportunity for some great returns on overseas shares – but my piece of guidance for risk mitigation is to consult the professionals.”
If you are thinking of looking overseas for investment opportunities talk to the currency experts behind City AM International Payments today.