What is the international retail service?
Traders of stocks are exposed to currency exchange rates when trading on the global markets, unless they use an international retail service (IRS) for their transactions. On an IRS, global companies are listed as though they are a domestic firm.
Where have you heard about the international retail service?
Brokers and stock trade advisors often promote the benefits of using the international retail service, by way of reducing the expenditure on transactions.
What you need to know about the international retail service.
Traders and investors are interested in buying into international stocks as it gives them access to high-quality companies in important global markets.
For instance, a British trader looking to invest in AstraZeneca or BP can do so using London's stock exchange, the FTSE, buying shares in pound sterling. However, if that same person want shares in Google or Apple, then they would need to buy them in the US dollar via the American stock exchange, Nasdaq, exposing them to rates of currency exchange.
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