How much should you put into international stocks?

It depends on what your financial goals are and how much money you have. Investing in an ETF of major US companies (such as an S&P500 ETF) can be a safer option than investing in a few individual overseas stocks. By investing in a whole portfolio of top international shares it may be possible to allocate as much as 50% or more of your investment portfolio, depending on your age and goals. Generally speaking, the closer you are to retirement, the smaller your allocation of stocks should be relative to safer assets, such as cash or bonds.

Do I pay tax on overseas dividends?

Yes, dividends you've earned from international shares are taxed at your marginal tax rate. This tax may be offset however if you've already paid tax to the overseas government. For instance, the US withholds 15% tax on US dividends paid to overseas investors. So if your tax rate is 30%, you'll need to pay an additional 15% to the ATO.

Is CommSec a good option for buying overseas shares?

You can buy international shares on Australia's biggest broker CommSec, but this does not mean it's your best option. CommSec charges US$5 per trade for US stocks and £12.00 for UK stocks. These fees are fairly average when compared to other trading platforms in Australia, but there are several cheaper options including CMC Invest, eToro and Stake (though Stake does not offer UK stocks). For more information on CommSec, check out our CommSec Review .

Can you buy international shares on nabtrade?

Yes, you can buy stocks from the US, UK, Hong Kong and Germany using nabtrade, however the brokerage fees are higher than some other trading platforms. For instance, brokerage starts at $9 for international share trading on nabtrade. While this is relatively high for US stocks, it's on the lower side for UK stocks.