Investors can now invest directly in the US market with Charles Schwab

SINGAPORE (Nov 5): When it comes to investing, many Singapore investors have a home bias. This is because they prefer to invest based on the familiarity of their own domestic market, rather than the unfamiliarity of international markets. Such a preference, unfortunately, means that investors may be missing out on investment opportunities. While investing in foreign markets is not without risks, diversification is key for any portfolio to help mitigate risk.

Charles Schwab — a leading US bank and brokerage — reckons that the US market provides a great avenue for Singaporean investors to diversify and at the same time take advantage of the benefits of investing in the country. This is because the US market is well-established, offers investors more choice, has greater liquidity and is better capitalised than any other market in the world. The abundance of financial information and strictly observed reporting regulations make this US market highly transparent. The scale and competitiveness of the US markets combined with the Schwab value of seeing investing through clients’ eyes means Singaporean investors could benefit from lower costs and better outcomes through diversification of their portfolio.

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