Original subtitles

There's one type of cost that people tend to forget

about and that is the cost of changing currencies and

moving money to your broker, possibly across the world.

Let's look at these separately. Currency conversion is a hidden

cost but it can make a difference, banks and stock

brokerage platforms often don't give you a great exchange rate

and then ATMs and airport kiosks are even worse. Sometimes,

they can charge you a fixed percentage fee or dollar

amount on top and that dollar amount especially is going

to hit you hard if you are just exchanging small

amounts. Other brokers claim to offer free conversion,

but they may not give you the best rate, always

check it. If you're getting something close to the

interbank rate, which is more or less the rate you see

on Google, then you're doing ok.

Once you've got the right currency then it's time to

move it to the broker. Some local and international brokers

accept dirhams directly, so as long as they convert it

to USD, its a decent rate. Its very cheap to

just send them your dirhams. If the broker doesn't

accept dirhams,

you may have to send them USD. Sending them USD

internationally can incur a correspondent banking charge of $20 to

$30. So if you send $100 from your bank, your

broker mate only receives $70.

This is a big problem when you're trying to invest

small amounts as $30 is a huge percentage when sending

a $100 but a fairly small percentage when sending $5,000.

If you have to send USD, either wait to invest

quarterly rather than monthly or find a broker that accepts dirhams

and will convert them to you at a decent rate.

So,

that's it,

you can start investing for as little as $5 especially

if you find a low-cost but reputable brokerage. Send it

some dirhams and buy an ETF or two. Now that you've watched

this, try to get started in the next 7-days. You'll

find that investing sensibly by yourself is really empowering and

once you know what to do, you'll never look back.