Risks & Expenses

A few unique risks that accompany international investing tend to make investing overseas inherently more risky than investing domestically. These risks include:

  • Fluctuations in exchange rates
  • Changes in the political and social environment that can create economic upheaval
  • Language barriers
  • Different regulatory and legal systems

In addition to the inherent risks, investing internationally may be more expensive. There may be additional costs when you exchange one currency for another or large taxes on capital gains. Finding financial and management details about the company may be difficult as well.