Poll: Biggest Challenges for International Investors

Hey Guys.

I’m putting together info on the challenges that we, as non-US investors, currently face.

What are the biggest inconveniences for you?

  • Can’t buy US-domiciled ETFs
  • Not enough multi-currency offerings (stocks, ETPs/ETFs, etc.)
  • [UK Investors] Can’t hold most ADRs in an ISA account
  • [UK Investors] Can’t buy crypto derivatives
  • Other. Be honest!

0 voters

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For anyone choosing “other” - feel free to specify in the comments section :slight_smile:

I suppose it depends on your investment style. It makes no difference to me as I mainly invest in ETFs and there are plenty of UCITS ETFs to match US domiciled.

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I agree. Many US ETF providers are starting to enter the EU market (like Global X recently did) - so this should only improve with time.

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For me:

  • Mutual funds restrictions
  • Find a broker willing to open an account for non-us, non-eu resident
  • Fees for funding/withdrawal
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All of the above :sweat_smile:

The problem is there’s literally nothing we can do as retail to change these issues so I’m not sure of the purpose of this poll :joy:

Are you writing a news article?

The most likely to change is the FCA back tracking on the crypto stance. But Im sure someone got rich from putting their hand up in the meeting to raise this idea of banning retail from ETNs and CFD crypto.

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Biggest challenge for me is lack of competition, from only being allowed to invest 20k in one stocks and shares ISA/platform a year.

I should be able to use multiple brokers for different purposes.

As I try to contribute to my ISA on their platform, they should check with the GOV if I have enough allocation left to accept any new funds.

Similarly the 6-12 week transfer process is a faff, it would remove that!

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The US-domiciled ETFs question is a non issue, for 2 reasons.

Most of US-domiciled ETFs have UCITS versions (UCITS versions are legally accepted and sold all across the world, they are considered as the standard framework for ETFs).

And some European investment banks and brokers offer the US-domiciled ETFs even for common retail investors (I see that FCA is more rigorous then their European counterparts in this subject, other example is the crypto ETPs and similar banned only by FCA).

So I think that FCA is an issue more relevant. The European regulators so far are more flexible and investor friendly.

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I dont see it as the FCA as an issue, they are trying to protect investors from buying products where they may not fully understand the risks and how things work. Something which can be quite obvious from posts on this forum at times.

A solution could be temporary barriers to entry. Investors have to prove competence/knowledge, and accept the risks in certain instruments(think someone mentioned a test), before they could trade/invest.

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They can protect the investors by incentives and legislation on financial literacy.

Banning something is an extreme solution that push the consumers to the underground or to other countries or markets to circumvent the restrictions, and in the end the regulator (e.g. FCA) loose the control and fails to protect the consumers.

For example, UK brokers can’t sold crypto ETNs, but investors could go to other non-UK brokers and buy that. The same for US-domiciled ETFs. (Regulatory arbitrage for investors and lost of competition power for the UK financial intermediaries).

I can buy crypto ETNs and US-domiciled ETFs, like the ARK ETFs in several investment banks and brokers (all non-UK based). As also other investors. :wink:

Also the investor should always have access to what he/she wants to invest, it’s their decision to do with his/her money what they want to do. (It’s like the Health/Government Authorities banning the alcohol consumption due to health protection.)

This, I think is a way to protect the consumers. (It was me that suggested a financial literacy test that also helps the investors’ education).

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Haha :smiley: - not exactly. Just putting together some info/research on the most annoying hurdles that (myself included) international investors gotta deal with.

I’m digging into a few topics with the product team at Leverage Shares, so I wouldn’t exactly say there’s “nothing” that can be done :wink:

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Yeah this is a double-edged sword. The FCA is protecting investors by making it hard to buy via an exchange-traded product, but this means those that are keen are just gonna buy the crypto outright. And this could lead to losing their personal wallets, etc. - so introducing other risks.

My guess - they’ll ease their views at some point. Especially if the SEC approves a Bitcoin ETF this year…

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Yes, but the fees on the UCITS versions are often much higher. :wink:

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There is a wider selection of products among US-domiciled ETFs and some niche ETFs still don’t have UCITS versions.

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Like some of the Small Cap Value ETFs :smiley: .

There is a larger variety of non-UCITs ETFs.

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The regulatory and legal costs also contribute to higher fees. :wink:

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Finding a trusty broker without huge commissions for Eastern Europe… since T212 is not allowing new customers for a couple of months now(unfortunately). I have NONE to recommend my family, close friends and coworkers. It was hard even to convince people to start investing since financial education doesn’t exist in this region. And now that i managed to convince some by showing my example, positive experiences and explaining the benefits… guess what? I have no broker to recommend them.

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How about one that is named after what you ‘stick’ into vampires to kill them?

Unfortunately not available in my country, Romania.

Morning all

There are ETC which pay high dividend returns MUNI etfs state owed which is good for long term holdings for a stable income
Have a fab weekend
Regards

Roshan

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