New Zealand investors seeking to diversify their portfolios beyond domestic markets have unprecedented access to international shares through modern trading platforms. The ability to buy US shares NZ investors now enjoy, along with access to other global markets, has transformed the investment landscape since platforms like Sharesies launched in 2017.
Choosing the right broker for international shares NZ trading requires careful consideration of fees, platform usability, market access, and educational resources. This comprehensive guide examines the leading platforms available to New Zealand residents, helping you make an informed decision based on your investment goals and experience level.
Trading International Shares
Trading international shares from New Zealand involves several key considerations that differ from domestic investing. Currency conversion fees, market access hours, and regulatory compliance all play crucial roles in your investment success.
Key Factors for International Trading
Currency Conversion Costs
Most international share purchases require currency conversion from New Zealand dollars. Interactive Brokers offers the most competitive forex conversion fee at 0.002% or a minimum of $2, significantly lower than many local platforms. Tiger Brokers charges approximately 0.35%, while platforms like Sharesies and Hatch typically charge 0.5% for currency conversion.
Market Access and Trading Hours
International markets operate in different time zones, affecting when you can place trades. US markets, for example, operate during New Zealand evening and early morning hours. Real-time data access varies between platforms, with Tiger Brokers providing free Level 2 data for US stocks and Interactive Brokers offering comprehensive global market data.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
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Regulatory Compliance
International trading platforms must comply with both New Zealand financial regulations and those of the markets they provide access to. Established platforms like Interactive Brokers and ASB Securities offer robust regulatory compliance, while newer entrants like Tiger Brokers have gained recognition, including Canstar’s 2024 award for Most Satisfied Customers for online share trading.
Popular International Markets for NZ Investors
United States Market
The US market remains the most popular international destination for New Zealand investors. Platforms like Hatch specialize exclusively in US market access, providing over 3,000 US Stocks and ETFs including all S&P 500 companies. Interactive Brokers offers $0 commissions on US stocks for many account plans.
Australian Market
The Australian Securities Exchange (ASX) provides familiar territory for New Zealand investors. Tiger Brokers offers 0% commission on ASX trades for a limited number of transactions, while ASB Securities provides traditional access with fees ranging from AU$30 minimum or 0.3% for larger trades.
Asian Markets
Growing interest in Asian markets has led to expanded access through platforms like Tiger Brokers, which provides access to Hong Kong, Singapore, and China markets with more than 7,000 stocks available across these regions.
The Best International Share Trading Broker in New Zealand
Based on comprehensive analysis of cost structures, platform usability, market access, and customer support, several platforms stand out for international share trading.
Interactive Brokers – Best for Global Market Access
Interactive Brokers (IBKR) leads in international market access with over 135 markets worldwide. The platform offers professional-grade tools through Trader Workstation alongside simplified web and mobile applications for casual investors.
Strengths:
- Access to 135+ global markets
- Extremely low forex conversion fees (0.002% or $2 minimum)
- $0 commissions on US stocks for many account plans
- Professional-grade research tools and educational resources
- Reliable execution and platform speed
Considerations:
- Trader Workstation can be complex for beginners
- Customer support accessed through international offices
- Learning curve for new investors
Blackbull Markets – Best for Low-Cost International Trading
Strengths:
- Access to over 26,000 global tradable instruments.
- Industry-leading low commissions for international shares.
- Locally based with 24/7 New Zealand support.
- Seamless integration with the powerful TradingView platform.
- No minimum deposit required for standard accounts.
Considerations:
- A withdrawal fee is applied to most payment methods, which can impact smaller accounts.
- The specialized BlackBull Invest platform may have a learning curve for complete beginners.
- Research tools and market news are less comprehensive compared to some global competitors.
IC Markets – Best For High-Volume Trading
Strengths:
- Institutional-grade liquidity with ultra-low spreads.
- Access to over 2,250 global instruments.
- Sub-millisecond execution speeds for active traders.
- Supports MetaTrader 4, 5, and cTrader.
- No restrictions on scalping or automated trading.
Considerations:
- The research and educational content are less comprehensive than some premium competitors.
- Customer support can experience delays during peak global market volatility.
- The interface of the Trader Workstation can be overwhelming for novice investors
Pepperstone – Best For Algorithmic Trading
Strengths:
- Lightning-fast execution with minimal slippage.
- Award-winning 24/7 local customer support.
- Seamless integration with TradingView and cTrader.
- No minimum deposit required to start.
- Highly transparent and competitive commission structure
Considerations:
- The range of international shares is more limited compared to multi-asset specialists like BlackBull.
- Does not offer a proprietary mobile app as feature-rich as some competitors.
- Lacks some of the advanced fundamental research tools found on institutional platforms
Should I Invest in International Shares?
International share investing offers significant benefits for New Zealand investors, but requires careful consideration of your financial goals, risk tolerance, and investment timeline.
Benefits of International Diversification
Portfolio Risk Reduction
Investing across multiple countries and currencies reduces concentration risk in the New Zealand economy. International diversification helps protect against local economic downturns, currency fluctuations, and sector-specific challenges that might affect domestic investments.
Access to Global Growth Opportunities
International markets provide exposure to companies and sectors not available on the NZX. Technology giants, pharmaceutical innovators, and emerging market leaders offer growth potential that may not exist in New Zealand’s relatively small domestic market.
Currency Hedge Benefits
Holding international shares provides natural hedging against New Zealand dollar weakness. When the NZD declines relative to other currencies, international investments typically increase in value when converted back to New Zealand dollars.
Considerations Before Investing Internationally
Increased Complexity
International investing introduces additional complexity through currency conversion, different market regulations, and varying tax implications. Understanding these factors is crucial for successful international investing.
Higher Costs
International trading typically involves higher costs through currency conversion fees, potentially higher brokerage fees, and tax compliance requirements. These costs can impact returns, particularly for smaller investment amounts.
Market Knowledge Requirements
Successful international investing requires understanding of foreign markets, companies, and economic conditions. This knowledge requirement increases with the number of markets you choose to invest in.
Getting Started with International Shares
Start Small and Learn
Begin with a small allocation to international shares while you learn about different markets and platforms. Many successful investors start with 10-20% international allocation and gradually increase as their knowledge and comfort level grows.
Choose Your Markets Wisely
Focus initially on major, well-regulated markets like the United States and Australia. These markets offer extensive company information, strong regulatory oversight, and liquid trading conditions suitable for beginning international investors.
Consider Your Platform Carefully
Select a platform that matches your experience level and investment goals. Beginners might prefer Sharesies or Hatch for their educational resources and user-friendly interfaces, while more experienced investors might choose Interactive Brokers or Tiger Brokers for broader market access and lower costs.
Educational Investment
Invest time in learning about international markets, currency impacts, and tax implications. Platforms like Hatch and Sharesies offer extensive educational resources, while Interactive Brokers provides professional-level research tools and educational content. Consider exploring investing tips to develop a solid foundation for your international investment strategy.
International share investing represents a valuable opportunity for New Zealand investors to diversify their portfolios and access global growth opportunities. The key to success lies in choosing the right platform for your needs, starting with appropriate allocation levels, and continuously educating yourself about international markets and investing strategies.
The platforms reviewed offer different strengths: Interactive Brokers for comprehensive global access, Tiger Brokers for cost-effective international trading, Sharesies for beginner-friendly fractional investing, Hatch for US market specialization, and ASB Securities for traditional banking integration. Your choice should align with your investment goals, experience level, and preferred markets for international diversification.
