The best brokers for international stocks trading

Trading is one of the best ways to be financially secure for both the present and future. And it can be done from anywhere in the world, as long as you have good and stable Internet connection.

So even if you are currently living as an expat in a foreign country, you can still trade and leverage it as a part of your financial flow. However, to ensure fruitful international trading, selecting the best and right international brokers is imperative.

But before that, it is important to know how to manoeuvre international trading before you start venturing into it. 

International stock trading explained

International stock trading refers to the frequent transactions of buying and selling foreign stocks with the aim to generate returns that outperform buy-and-hold investing. The profits generated by trading come from buying at a lower price and selling at a higher within a relatively short time. In other words, people who do stock trading are looking to make profits in a specified period of time.

In stock trading, traders will often employ technical analysis to help them find and set up high-probability trading positions.

Benefits of trading foreign stocks

According to Charles Schwab, an American multinational financial services company, there are a few benefits to trading foreign stocks.

The first one is the high potential thanks to the exploration of natural resources and the growing businesses in Brazil, Russia, India, China and South Africa (BRICS) market. 

The second benefit is that you will be lowering the risk of losing money during a US downturn when you have foreign stocks in your nest. The last benefit is that foreign stocks add another layer of diversification to the world economic scene. 

What makes a good online international broker

When selecting international brokers, it all comes down to having the most products (stocks, bonds, ETF) and a quality platform that is well-equipped with tools. Besides the said qualities, there are also other five important criteria that you should consider when selecting international brokers:

Fee

The trading fees for a given stock trade can be 50 times more with one online broker compared to another online broker. So look for brokers that can provide low fees.

Deposit and withdrawal

Select brokers that can provide you with quick funding and withdrawal. In addition, some brokers are more expensive than others when it comes to funding and withdrawal, so look for brokers that are cost-efficient for funding and withdrawal transactions.

Trading platform

Choose online brokers that have a user-friendly, easy-to-navigate and well-equipped platform. So that it will increase both your comfort and efficiency level while using the platform.

Account opening

Some brokers require a minimum deposit before you can open an account, while some won’t ask you for a fixed first-time deposit. So before you open an account, you may want to check the requirements first.

Markets and products

Find brokers that allow you to trade in different markets, stocks and products (ETF, Bitcoin, etc.); so that you have more asset types to choose from and trade. 

Online brokers for international trading comparison

Below we have prepared a list of online brokers for international trading and local (Malaysia) online brokers that support international trading.

Interactive Brokers

Interactive Brokers is suggested for: Investors looking for a broad market environment and a professional trading environment.

E*TRADE

E*trade is suggested for: Beginner investors due to the abundance of educational and informational resources. 

Charles Schwab

Charles Schwab is suggested for: Investors looking for a trading platform that can provide a large selection of mutual funds and zero commission.

Robinhood

Robinhood is suggested for: For investors looking to invest in cryptocurrencies. 

Fidelity

Fidelity is suggested for: Investors looking for an online trading broker with strong research tools and a neat mobile platform. 

M1 Finance

M1 Finance is suggested for: Experienced investors who prefer a low-cost customisation portfolio solution and looking for additional product offerings such as the borrow and finance options. 

Top local online brokers that support international trading comparison

Hong Leong Investment Bank (HLe Broking)

UTrade by UOB Kay Hian

Affin Hwang Investment Bank Berhad

Mercury Securities

Things to consider when trading as an expat

No matter where you are in the world, you can start trading through your home country’s brokerage. But to ensure that your trading with your home country’s brokerage won’t encounter any roadblocks and issues, you will require the following:

Maintain your home country address

The easiest way to avoid running into problems or roadblocks with bank and brokerage accounts when trading as an expat is by using and maintaining your home country address.

Hire expat-friendly brokers

if you do not own an address in your home country, then you may hire international brokers that are known to work well with expats. 

But there is a downside to it; which is the currency exchange rate being higher when you are brokering with international brokers. Fortunately, there is a currency exchange service provider like Instarem that provides competitive rates and low fees for currency exchange. 

Use virtual mailbox services

The third option is to subscribe and use virtual mailbox services. By using a virtual mailbox, you will be able to receive the actual address of your home country. Not only can you tie it to brokerage accounts, but you are also able to view your mail from anywhere in the world.

Financial transactions

One of the issues you will face when trading internationally is the currency exchange rates when withdrawing from your trading account, or fee payments to your online trading brokers. Depending on the current rates, it can be quite costly.

However, you can overcome this issue by using a modern-day online remittance service provider like Instarem.

Instarem is an online remittance service that can be used for business purposes or personal use such as online trading. 

The perks of using Instarem as your remittance gateway for online trading are that it has low nominal fees and offers competitive FX rates. 

Download the app or sign up here.

Things you should consider before trading

When internationally trading for stocks you will need to be mindful of the risks such as liquidity and currency exchange rate fluctuations. Also, you can open an account with a local broker in a country if you are interested in their international market.

Though there are risks to such brokers you have an account with shutdown overnight and absconding your assets. To avoid and minimise such risks, you may invest in a sector fund; investing in a company within a particular geographic region. 

Disclaimer: This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with products or vendors mentioned.