Best International Trading Brokers: Your Guide to Global Markets

In recent years, investing in international stocks has shifted from being a nearly unattainable goal to a common practice, thanks to the decrease in fees for purchasing shares in global markets. This reduction in costs has sparked intense competition among the best international trading brokers, each striving to attract investors by offering more accessible and cost-effective options for engaging with international stocks

Best International Trading Brokers

In this article, we will conduct a comprehensive analysis of the best brokers for investing in international stocks, helping you decide which one suits your needs.

We will organise our comparison based on the region you are interested in investing in, highlighting the brokers that offer the most competitive rates.

How to choose a broker to buy international shares?

When investing in securities, it is very important to choose the best broker to buy shares, as the differences in fees can be considerable.

To operate in these international markets, you must take into account the following aspects:

  • Fees for currency exchange: this fee is important when trading or investing in international shares, as you'll have to use foreign currencies.
  • Any other tax or fees for foreign stocks
  • Availability of foreign stocks and markets

Cheapest brokers to buy American shares

The US stock market is widely available. If you want to buy Amazon shares or to buy Google shares, here are some of the best brokers on the market:

Best brokers to invest in US stocks

BrokerUS Stocks feesCurrency conversionMinimum deposit 
DEGIRO€1+ €1€10.00 + 0.25%€0.1DEGIRO review
XTBSpread starting from 0.3 pips0.5%
£0
XTB review
ETOROVariable spread, no commissionN/A (USD account)$50eToro review
INTERACTIVE BROKERS$0.005/ share0.03%£0Interactive Brokers review

Best brokers to buy European stocks

Almost all European countries have their own stock exchange, but not all of them are offered by brokers, nor do they have the same commissions.

BrokerEuropean stocks
DEGIRO€3,90+ €1
XTBSpread starting from 0.3 pips
ETOROVariable spread
INTERACTIVE BROKERS0.05% (minimum €3)

Best brokers to buy Asian stocks

The main markets offered for Asian exchanges are Hong Kong, Australia and Japan. Here are the costs:

BrokerAsian stocks
DEGIRO€5 + €1 management fee
ETOROVariable spread
INTERACTIVE BROKERS0.08% (with a minimum amount according to country)

These are the top brokers to buy international shares. However, if you're looking for national shares, check out our best commission-free brokers.

Other aspects to consider when choosing the best international trading brokers

Each broker has its characteristics, so

  • DEGIRO: It will charge market connectivity fees of €2.5/year for operations in international markets.
  • At XTB, there is an inactivity charge of €10 per month.
  • eToro offers commission-free stocks. It has a fixed fee of $5 per withdrawal.
  • HeyTrade is a Spanish broker with no commissions, but there is a minimum deposit requirement of €100.
  • Exante is a broker for professionals. It offers access to exotic markets that almost no other broker offers.

Taxes for trading internationally

For British citizens, capital gains on overseas investments are typically subject to UK capital gains tax. However, the specifics can vary based on the double taxation agreements the UK might have with the countries where the investments are located.

If your international investments pay dividends, these are often subject to income tax in your home country. In the UK, foreign dividends are generally taxable. The rate depends on your overall income level.

Many countries deduct withholding tax on dividends paid to foreign investors. For example, the US typically withholds 30% on dividends paid to foreign investors. However, tax treaties between the UK and the country of investment can reduce this rate.

Finally, if you pay tax in a foreign country, you may be able to claim a foreign tax credit to avoid double taxation. The UK, for example, allows you to offset some of the foreign taxes against UK taxes due on the same income.

Learn more about the stock market

Summary

Overall, you may want to invest in European, US, or Asian stocks to diversify your investment portfolios, reducing risk by spreading investments across different geographic regions and economic environments.

European stocks offer exposure to varied industries and stable economies, while US stocks provide access to some of the world's largest and most innovative companies, potentially leading to higher growth opportunities. Asian markets, known for their rapid economic growth and increasing global influence, present unique investment opportunities, especially in emerging technologies and consumer markets.

FAQs

How can I start investing in foreign stocks?

You can start by opening an account with a brokerage that offers international trading. Research different platforms to find one that suits your needs regarding fees, access to various markets, and educational resources.

What should I consider before investing in foreign markets?

Consider factors like political and economic stability, currency exchange rates, market regulations, and the tax implications in both the foreign country and the UK.

How does currency exchange impact my investments?

Currency exchange rates can affect the value of your international investments. A strengthening of GBP against the foreign currency can reduce your returns, and vice versa.

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