How to invest abroad

Learn what you should do to become an international investor

Executivo usando celular, a frente de um computador e uma mesa com jornais e calculadora

Making your money grow is quite handy and this can be achieved by people who invest and look for ways to boost their earnings. Investing abroad is a great opportunity and, fortunately, it is not as complicated as people commonly think.

There are some differences compared to investing in Brazil, both in terms of language and the procedures, techniques and practices to be followed. However, you can learn all that once you dig deep in the subject.

You will understand how some of the investment options work outside Brazil and why it is worth targeting them.

How to invest abroad?

Those who wish to invest outside their countries have plenty of options, but the first step is always the same: open a brokerage account in the country in question.

Stock brokers intermediate the acquisition and sale of financial securities to clients and are fundamental players when investing abroad.

If you wish to invest in the following countries, you can contact a stock broker, as indicated below:

– United States: Fidelity Investments, Charles Schwab Corporation, Wells Fargo Advisors, TD Ameritrade Holding Corporation, Edward Jones Investments, AXA Advisors, LPL Financial, Voya Financial.

– United Kingdom: Investec, Killik & Co, Credo Asset Finance, Canaccord Genuity Wealth Management, Redmayne Bentley, Reyker Securities.

– France: IG Group, Saxo Capital Markets, Pepperstone, ETX Capital, CMC Markets, Spreadex, XTB, Capital.com.

– Spain: Interactive Brokers, Saxo Bank, DEGIRO, Swissquote, XTB.

– Italy: IG Group, Pepperstone, Saxo Capital Markets, CMC Markets, City Index, XTB, Spreadex.

– Portugal: DEGIRO, Swissquote, Saxo Bank, XTB, Interactive Brokers.

Some of the brokers above can be found in more than one country because they provide services in different European countries and they can help you invest abroad.

Remember you have to compare the prospect of each broker as well as any fees charged and the types of packages offered. This will help you make the best possible choice.

What investment options are available?

Once you have opened your account, you can choose from the available investment options, which go beyond traditional stock purchase. Some of them are as follows:

Calculadora representando investimento

Exchange-traded fund (ETF)

Low-cost, diversified funds. A great option for those who have limited budget and want to learn more about investing abroad.

The advantage here is that you don’t have to buy assets separately, allowing different markets to take advantage of the opportunity.

This investment has existed in the United States for more than 25 years and works similarly to index funds in Brazil.

Contract for difference (CFD)

This is another option where you don’t have to buy indexes or specific shares to participate and, thus, to profit from its valuation. CFDs are traded on margin, which makes it a risky investment, but with a high chance of profitability.

Investors can work with reduced capital, but exposure is equal to that of larger investments. Therefore, profit and losses are very intense, which should be considered by potential investors.

Investment Funds

This is an investment option better known by Brazilians. These funds are generally offered for investments of at least BRL 25,000.00, and investors can invest some of their money in Brazil and some abroad – or even everything outside Brazil.

The two main advantages of this foreign investment option are practicality and convenience, as investors can fully control their investments from Brazil, in addition to allowing high profitability, a common aspect in this type of investment.

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Why should you invest abroad?

There are several reasons for investing abroad, but the major ones are as follows:

Strong currencies

Being able to choose knowingly strong and stable currencies makes overseas investment sounds like a great idea because of security and better chances of profitability.

Brazil does not have a currency as stable and strong worldwide as US Dollar, Euro and Pound Sterling, for example. Therefore, when investing with these currencies, the security offered by them is already a positive aspect in trying to achieve better results.

Investing with foreign currencies can be even more profitable when US dollar exchange rate is down. Then, you can profit from the exchange rate and the investment itself.

New options

One important thing about investments – whether in your own country or abroad – is to diversify your investment portfolio. So, if a particular investment option is not doing well, you won’t lose all your money and the negative impacts will be reduced.

In addition to having a national investment portfolio, having an international investment portfolio helps you diversify your options and is a risk management strategy. Consequently, you will learn about foreign markets, which is interesting if you want to become an expert in the subject.

Access to large companies

Those who invest outside Brazil can buy shares and become shareholders in multinational companies, such as Apple, Facebook, Google, Microsoft, among others. This is a rewarding and profitable opportunity.

In addition, some of the most revolutionary business ideas come from outside Brazil and being able to invest in them, when they are still incipient, gives you the opportunity to buy shares at a low price and then sell them and earn money.

Start investing abroad

Both investment experts and people who are still learning and want to go further can take advantage of investing abroad.

Just like small and medium-sized foreign companies face difficulties when they arrive to Brazil due to a different culture and different customs, the same is true about investing abroad. Only time will help you overcome any potential difficulties.

Go forward and start investing abroad to confirm all the benefits mentioned here. By being persistent, studying, being determined and by being assisted by a translation agency, which will help you deal with the paperwork and avoid any potential problems, results tend to be positive, especially in the medium and long term.

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