Specialist stock broker Internaxx goes live at the Worldwide Property Show Dubai

Internaxx, backed by TD Bank and Fortis, offers trading on a dozen global stock markets over the Internet and access to cfd/forex facilities. Expats living in the Middle East can access global markets and maximise investment opportunities across the world through a comprehensive and secure service, anywhere at any time.

Internaxx - the ideal online, offshore brokerage for expats based in the Middle East
Traditionally the preserve of the advisory client, the offshore market has recently opened up to the self directed expat investor. More than ever, increasingly mobile and financially aware expats are choosing where and how to invest. They are turning to low cost, online brokerage services that enable equity trading in international markets and access to a range of offshore mutual fund products.

Investors opening or transferring a brokerage account should be careful to identify a service that can fulfil their particular needs.

Internaxx has extensive experience of customers based in the Middle East, enabling them to diversify portfolios and thereby reduce risk and boost opportunity. Internaxx offers a full range of real-time equity trading in twelve markets including North America, the United Kingdom and Continental Europe, as well as cfd and forex trading on a dedicated downloadable station. For those seeking the broadest diversity in equities, bonds or monetary instruments, a fund supermarket allows access to over 250 offshore funds.

Internaxx also offers the investor the confidence of dealing with a company with blue chip backing. Based in Luxembourg, Internaxx is the offshore arm of global online broker TD Waterhouse and Banque Générale du Luxembourg, part of the international Fortis Group.

Expats based in the Middle East more internationally aware but less bullish than expat investors based in the UK and Europe.

Internaxx is the only financial organisation to conduct a biannual research study among expatriate investors. The last survey conducted in November 2004 highlighted the confidence of international investors in their investment performance, with 33% of expatriates saying they have outperformed the market, and 46% saying they had matched it.

Internaxx explained this out-performance on investment results with a growing awareness of the globalised economy and international global trends. 85% of investors wanted their principal investment providers to give access to international equities and 73% claimed to have more of an international outlook than other investors.

The research showed expats based in the Middle East were more internationally focused than expats based in the UK. Only 52% of expats in the UK had assets off shore compared with 72% of those based in the Middle East and 74% of those based in Europe.

But UK based investors were more bullish about their performance than their Middle East counterparts, 41% and 26% respectively saying they had outperformed the market. Risk takers were twice as likely as conservative investors to outperform the market, with 45% of those prepared to take risk outperforming the market, dropping to 25% for those who considered themselves to be conservative investors.

Furthermore, expat investors exposed themselves to much more diversified and risk-optimized portfolios than domestic investors. Together with their 'home' stocks, they continued to be attracted to the volatility of tech shares and commodities, US stocks and stocks available in their country of domicile.

For all expats, tax efficiency was the biggest driver at 72% followed by confidentiality at 54%. Pricing and value came third at 49%.

Almost 70% of expat investors worldwide had placed their assets offshore, though the figure had dropped slightly from the first Internaxx survey in 2002/3. The biggest reason given was a belief that the barriers to entry are higher than investors can afford.

The survey also showed that Switzerland and Luxembourg came top for investor confidence, with 68% and 67% respectively. The Isle of Man scored 48% and Guernsey and the Cayman Islands scored 47% and 23%.

In judging the most important virtues of a provider, investors wanted a reputation for trustworthiness, integrity and transparency, which were ranked equally with accessibility and cost. When dealing shares, expat investors preferred on line brokers (58%) to banks (57%) and other brokers (42%) and rated online brokers more satisfactorily (53%) than banks (41%). An interest in ethical investments and the ability to manage and organise pensions from multiple employers in more than one country were also mentioned by respondents for the first time.

The internet was seen once again as the principal information provider for expatriates, who placed it at the top of the list of information sources for investment decisions with an overwhelming 90%, a massive rise form the 41% from two years ago.

The survey also showed that a big majority (74%) of investors did not pay for advice, preferring to do their own research - primarily using the internet and English language media. However, among the 26% who did pay for information, subscription based services were almost as important as traditional IFAs and brokers (47% to 53%). Among the 26% of investors who paid, Middle East expats had a greater propensity to pay for advice (35%), than did UK based investors (30%).

Expatriates also claimed to be content with their lifestyle: A large majority (93%) were very (47%) or fairly (46%) happy in their present situations. Interestingly, the ones who were happiest with their current situation also claimed to have their financial affairs under control. Those who expressed satisfaction had also outperformed the market, and of those the happiest were those who had moved their assets offshore (77%).

Robert Glaesener, General Manager of Internaxx, said: "In our third bi-annual survey, interesting patterns emerged. The advent of the serial expat who moves between employers while staying away from home, the dominance of the internet as an IFA in its own right and the gritty determination of expats to believe in themselves and their decisions - to name but a few. The research also highlighted a jump in the reputation of Luxembourg for its transparency and competitiveness and as a financial hub for international investment.

The 2005 Internaxx Expat Investor Confidence Survey is now underway. Expat investors who would like to participate should
e-mail rb@resolutionresearch.co.uk for a copy of the 2005 questionnaire. Internaxx will make a donation to charity for each participant and one lucky winner will receive a hamper from Harrods in London.