England may not have the biggest national economy, but if we want to be honest, it has one of the largest and most important financial centers in the whole world. London itself is one of the biggest cities worldwide with the benefit of a high city gross domestic product. This makes the UK a huge financial hub for international investors. The stock exchange situation in this city is impressive and it is one of the top stock exchanges on the planet. Plenty of brokers like FXTM are providing the possibility to trade CFDs on commodities and indices, cryptocurrencies, stocks, shares, etc. and serving for the benefit of their clients.
The Risks and Benefits of Investing in the United Kingdom
Investing in this country can be safer than in other developing and frontier markets, but there are still many risks to be taken into account by investors. Some benefits of investing in the UK are:
- Financial markets: considering that one of the biggest financial markets in the world is in the city of London, besides New York, it makes the UK market very stable for the investors that are looking for a place outside the US.
- Blue Chip Stocks: some of the biggest Blue Chip companies on the planet are in this country. This decreases the risk of investing in that area and comparing other regions around the world.
- The UK is ranked 8th in the Doing Business Guidance for 2020 in the World Bank.
- Exports are competitive and varied in structure.
- The legal system is perhaps the world’s most versatile.
- For countries like the United Kingdom, the unemployment rate is one of the lowest.
Some Risks of Investing in the UK Economy
- Services: the economy of this country consists of over 70% of all services, which is common for developed countries. Though this may mean more stability, shifts in consumer credit and product prices can trigger problems quickly.
- Political issues: leaving the European Union may increase the risks of investing in that region and the same can be applied to Scotland leaving the United Kingdom.
- An industrial field that often suffers from a high degree of demand and rivalry between many countries’ international firms.
- Growth in productivity is very poor.
- The trade deficit is substantial.
- It is difficult to gauge the possibilities for improving the British economy and remain suspended in the deal that the government must discuss with the EU during the post-Brexit talks that will be held during the transition period by the end of 2020.
Invest Directly in the UK
The London Stock Exchange (LSE) also helps investors take a more straightforward approach to buy stocks. While some brokerage accounts provide capabilities for international trading, some investors may need to open foreign brokerage accounts.
All investors should view the tax probable consequences of direct investment in the UK with consideration. US brokerages, including firms like e-Trade Financial Company and Digital Brokers, providing access to the London Stock Exchange. Additionally, famous UK stock brokerages include companies such as Abbey Share dealing Banco Santander and Barclays Stockbrokers. Yet investors should be aware of any tax or regulatory consequences before investing.
Ease of Starting a Business in the UK
The United Kingdom is considered an easier region than many other big European economies to start a company. In the UK, you can sign your firm in only 24 hours. All High Street banks can provide business with banking facilities with accessible online assessment tools for a cost comparison.
Main Factors to Invest in the UK
The United Kingdom is one of the world’s oldest financial hubs in the world with several major corporations working within its economy. These factors make this a good international investment option for investors. Given its size, the United Kingdom faces some risks which deserve careful consideration. For example, its economy is strongly demand-dependent and could, therefore, be profoundly influenced by changes in consumer credit or commodity prices. Investors can invest in the Kingdom using a range of different options, ranging from easy-to-use ETFs and ADRs to the London Stock Exchange’s more complicated direct investment.
