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Investing your money can offer better returns for you than cash savings. However, there is greater risk in investing compared to cash savings. Savings accounts offer steady growth and are normally quickly accessible so you should look to keep enough money in them for emergencies, day to day and planned spending before thinking about investing.
Please remember that the value of investments and the income from them can fall as well as rise, and you may get back less than you invest. If you’re not sure about investing, seek financial advice.
When deciding how to invest your money, you should try to understand the level of risk involved and how much you're comfortable with. It's also important to think about how long you want to hold your investment. It's a good idea to invest for at least the medium to long-term: at least 5 to 10 years.
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Culture |
Language and cultural differences between the UK and foreign markets may mean that there is a lack of information, or difficulty in obtaining information you may consider important to your trading decisions. |
Currency Risks |
Any potential profit or loss from your trade in foreign markets may be affected by fluctuations in foreign exchange rates. |
Economy and Politics |
Economic or political factors such as inflation or interest rate fluctuations in the UK could affect overseas markets. The general economic outlook and market conditions may differ considerably between the UK and foreign markets causing them to be less – or more – favourable. |
Emerging Markets |
Emerging markets tend to be less developed than in the UK leading to greater volatility in securities pricing. The value of your investments could, as a result, change quickly. |
Shareholder Rights |
You may find, as a shareholder, you are excluded from some shareholder rights and benefits because you are resident in a different jurisdiction from that of the company you have invested in. An example would be participating in corporate events such as a Rights Issue. You may find you are not treated in the same way as other shareholders and could suffer losses as a result. |
Taxation |
Tax laws overseas differ from those in the UK. Tax authorities in many countries will take a larger amount of tax than they would in the UK because of higher rates. Remember that ISAs and SIPPs will only shelter you from UK tax. How tax is calculated abroad could therefore affect the value of, and returns from, any foreign investments. |
Trading and Settlement |
Foreign markets may trade at a lower volume than in the UK and this reduced liquidity may make it more difficult to sell shares you have bought. It could also cause delays with settlement. |
Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.