In case you already plan your early retirement I believe one of your saving & investment item is stock investment. Today I would like to mention also International Stock Investment.
Benefits of an international investment mix
✔ Investing in an array of companies diversifies your investment mix.
✔ Diversification may lower the risk in your overall portfolio.
✔ Diversification may also improve returns for most levels of risk.
Sooner or later you should consider how to eliminte risk in case US stock will fall. I don’t think there is nothing like this coming in near future, but who can be sure about things like this. Also another good point for other region investment is different currency rate so you can consider which market will grow in future and fill your pocket with more cash. For this reason I was consedering other region stock investment (Europe and Asia mainly) and now I would like to share with you my information about this.
The easiest and most common way to invest in foreign markets is by purchasing exchange traded funds (ETFs) or mutual funds that hold a basket of international stocks and bonds. With foreign holdings across multiple industries and countries, these two fund types provide investors with a quick and highly-diversified foreign component to their portfolio in just one easy transaction. But this won’t be today’s topic. We will discuss about real international stock investment.
At first you should choose your broker. I made research and the winner is Interactive Brokers (for my purpose). With them you can access to 100 markets in 26 countries.
In Europe it is Austria, Belgium, France, Germany, Hungary, Italy, Netherlands, Norway, Poland, Spain, Sweden, Switzerland and United Kingdom. Bold mentioned countries are my target markets.
In Asia it is Australia, Hong Kong, India, Japan and Singapore. Of course after deep stock analysis I will probably choose only one or two markets for investment, but my doors are open in case anything will change. So from market size point of view Interactive Brokers seems as best option for my purpose (international stock investment).
Most important points about Interactive Brokers (IBKR)
Founded 1978, with capital $4.6B and traded as IBKR at NASDAQ. Monthly cost for trading is one of the lowest on market with only $20 montly rate. Required minimum is $10,000 or equivalent for individual account ($3,000 if you are 25 years old or younger). Activity fee is not paid in case you have $100,000 or more for investment. Commission fees is $1.00 for US market which is the lowest on current market.
For all mentioned reasons i choosed Interactive Brokers for my international stock investment.
In case you choose other broker there is sometimes necessary to transfer currency (USD->JPY, USD->EUR etc.). For this purpose I foundTransferWise very convenient. TransferWise is 8x cheaper compare to bank transfer. From my experience I usualy pay around 1% fee from total transfer amount. Until now I did not find anything cheaper (if you know about anything cheaper, please mention in comment below).
Thank you for reading.
Here are some interesting articles about this topic from other sites as well.