One of the major advantages of an internationally diversified portfolio is steady and increased growth potential for your investments. You may be able to invest in industries or categories that aren’t available in your home country, and global diversification can offset any slowdown in your domestic economy. As many economies have largely recovered from the aftermath of the GFC in 2008, we’re entering a new era of economic synergy, which has produced a global rally. So if you’re only investing in your home market, you could be missing out on some of today’s most profitable opportunities.
So, if it’s so smart to look beyond your home country for new growth opportunities, why aren’t more Australians doing it?
Taking the Leap Into International Investing
According to Matt Leibowitz, founder of Sydney start-up Stake, with local brokers charging high brokerage and FX transfer fees to access overseas equity and ETP markets, Aussies have settled for investing heavily in the domestic market while missing out on the best the world has to offer. Leibowitz says of local brokers: “Limited product suite, hard to access, and expensive. It was obvious to me that Australians were getting a raw deal.”
That’s why Matt Leibowitz and his colleagues Jon Abitz and Daniel Silver started Stake, and why OFX jumped at the chance to become their FX partner, to make ‘investing globally more like shopping locally’ – a simple, affordable and enjoyable experience, underpinned by exciting growth potential.
Making International Shares More Accessible
Up until now, no Australian platform has focused solely on providing simple and affordable access to U.S. listed equities (just the start of Stake’s offerings). Stake have used technology to digitise the whole investment process, including the infamous W8-BEN forms for the U.S. tax office (which normally take several days for clients to get through). At Stake, it’s all about the experience, which is as easy and intuitive as buying a pair of shoes through a familiar eCommerce-style interface – perfect for 30-45-year-olds who are starting to think harder about their superannuation.
But the core to the platform’s appeal is affordability. “We set up Stake to give investors great access to better opportunities at the right price to help them generate better returns. On the FX side, this means reducing the cost of transferring money overseas, so more of it can be used to invest,” Leibowitz said. At OFX, that’s our philosophy too, and we’re proud to partner with people providing smart ways for everyday Aussies to grow their money.
Why Invest in the U.S.?
The U.S. provides a wide scope of investment opportunities and exposure to diverse asset classes, ideas and themes. Five of the largest listed companies in the world are technology companies and are listed in the USA. Secondly, and equally importantly, the U.S. has some the lowest brokerage costs for shares of any market in the world.
Australians, as Matt articulates, are being “fed stale bread and paying more for it – while others in the know pay a fraction of the price, fresh and straight out of the oven.” Time to savvy up – and now thanks to Stake, we can.
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.