A common question which crops up a lot, along with, What should I be investing in right now?
I can’t offer personal financial advice over a blog, YouTube video; however, I can sit down with expats and offer advice after understanding their situation and reviewing their risk profile and current portfolio.
Investing £100,000 as a British expat can feel like navigating a minefield of fees, offshore sales pitches and confusing jargon. But the truth is, good investing is simple if you keep your costs low, stay diversified and avoid the traps that catch so many expats out.
An example, I speak to many expats who have invested in offshore bonds when they don’t need to be. These haven’t performed as expected, come with lock-in periods and high fees, which leaves an unpleasant taste for an investor and expat.
To have a portfolio review / second opinion – please book a discovery call with me: Book a discovery call – iFE – Investments for Expats
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Choosing the Right Platform: Saxo Bank, Interactive Brokers & Swissquote
The first step is picking the right platform. For most expats, a solid, low-cost online broker is essential. Saxo Bank, Interactive Brokers (IBKR), and Swissquote are three well-known choices for expats seeking global access to markets.
There are more in the market; they aren’t bad platforms. These are ones which I like.
Saxo Bank, based in Denmark, gives investors access to a huge range of stocks, ETFs and bonds worldwide. Its fees are competitive, annual custody charges are usually around 0.12% to 0.20%, with stock trading commissions typically around £8 per UK trade.
Interactive Brokers is often the top pick for cost-conscious investors who want access to markets everywhere. It’s hard to beat on price, trading UK stocks and ETFs can cost as little as £1 to £3 per trade, with no custody fee if your account balance is large enough. There can be small monthly fees for lower balances, but for an active investor, IBKR is tough to beat.
Swissquote appeals to expats who value the reputation and investor protection that come with Swiss banking standards. Its fees are higher than Saxo or IBKR, often between £15 and £25 per trade, and there may be annual account fees, but you get strong security and a clear, user-friendly platform.
ETFs vs. Active Funds – Why Costs Matter
Once you have your platform, you need to choose what to buy. For most expat investors, this comes down to a simple choice: low-cost ETFs or more expensive active funds.
ETFs or exchange-traded funds simply track an index, like the FTSE 100 or S&P 500. They don’t try to beat the market; they match it. Because there’s no expensive fund manager picking stocks, the fees are sometimes as low as 0.07% a year. Over many years, these low fees can save you a lot of money on management, which, when compounded, adds up.
In contrast, active funds employ managers to pick shares they hope will outperform the market. History shows that most don’t succeed once you account for their higher fees, which can be 0.75% to 1.5% per year. Vanguard founder John Bogle spent his career proving this point: that most investors would be better off just buying the market instead of trying to outsmart it.
Today, the biggest, most cost-effective ETF providers are household names, Vanguard, iShares (BlackRock) and SPDR (State Street). They offer transparent, ultra-low-cost funds that quietly track global stock and bond markets for a fraction of the price of active funds.
Diversify: Spread Your Risk, Grow Your Wealth
Good investing is rarely about finding a single winning stock. A sensible portfolio spreads your money across a range of assets to manage risk and benefit from long-term growth wherever it appears.
In Thailand, you can often find people selling gold on many streets and expats will aim to pick up some gold to diversify their portfolios. You can buy gold in an ETF, which can be easier than purchasing physical gold.
Equities, or stocks, offer higher potential returns but come with bigger swings in value. Fixed interest investments like bonds bring stability and predictable income, helping smooth out the ups and downs. Cash or money market funds can provide a safe haven, but over the long term, they usually lose out to inflation.
The right mix depends on your goals, risk tolerance and time horizon. If you’re young or won’t need the money for decades, you can afford to tilt more towards stocks. If you’re closer to retirement or simply prefer sleeping soundly at night, holding a larger share in bonds makes sense. Over time, this balance helps protect you from big market shocks and keeps your wealth growing steadily.
Diversity isn’t just about having a portfolio of different stocks in different sectors. Many investors may have a mix of stocks, bonds, savings and property. There are more investments which you can use to diversify; however, these are the main ones investors know about.
The Power of Compound Interest & Dollar Cost Averaging
One of the simplest secrets of successful investing is giving your money time to grow. Compound interest, earning returns on your returns, turns small gains into serious wealth if you stay invested and reinvest your dividends.
A very good explanation can be found on InvestorPedia: The Power of Compound Interest: Calculations and Examples
Adding to this is the benefit of dollar cost averaging: putting in a fixed amount at regular intervals, regardless of whether markets are up or down. This smooths out the cost of your investments over time, reduces the risk of getting your timing badly wrong, and takes the emotion out of investing.
A second element to regularly putting money is that it forces or requires discipline to do so, which encourages you to keep the commitment of investing for the long term.
What to Avoid? Offshore Saving Plans & Offshore Bonds
While you’re putting your money to work, it’s just as important to steer clear of products that drain your returns. Many expats are still sold offshore savings plans and investment bonds from companies like RL360, Friends Provident or Generali. These products are usually pushed by commission-driven salesmen, not true advisers, and they lock investors into rigid, high-cost plans with long tie-ins, steep penalties and hidden charges.
With an amount like £100,000, there’s simply no good reason to wrap your investments in an offshore bond or savings plan. These structures might make sense for ultra-high net worth clients with complex tax needs, but for most expats they’re just an expensive trap that benefits the salesperson far more than the client.
Here are some of the blogs I have written on offshore bonds. I regularly get contacted by expats who have these in their portfolio and are unsure how to get out of them due to lock-in periods.
- Offshore Bonds Explained
- Utmost International and Offshore Bond Charges
- Offshore Bonds vs Global Platforms
- RL360 Oracle Review
If You Use an Adviser, Make It Fee-Based
Some expats want help managing their investments, and that’s fine, as long as you pay for it transparently. If you do want an adviser, make sure you’re paying them a clear fee for their advice rather than letting them earn hidden commissions for pushing products you don’t need.
Fee-based platforms like Morningstar Wealth or Novia allow you to work with a proper independent adviser who is paid by you, not by a product provider. For £100,000, it’s often more cost-effective to stick to simple low-cost ETFs yourself, but if you want support, be sure your adviser is genuinely independent and not motivated by sales commissions.
If you are ever unsure what an investment is going to cost and you are working with a financial advisor, please ask them.
Final Thoughts
If you’re a British expat with £100,000 to invest, you don’t need a secret offshore trick or a flashy plan. Keep it simple. Choose a reputable, low-cost platform like Saxo Bank, Interactive Brokers or Swissquote. Use proven, low-cost ETFs from trusted providers like Vanguard or iShares. Diversify your portfolio sensibly based on your risk tolerance and time horizon. Reinvest your income, invest regularly, and stay patient; the power of compound interest will do the rest.
And above all, steer clear of high-cost offshore savings plans and investment bonds that only enrich the salesman, not you. Done right, investing as an expat is refreshingly straightforward, and your future self will thank you for keeping it that way.
Blogs which will help you build your finances as an expat:
- Saxo Bank Platform Review for Expats
- Morningstar SIPP Review 2025
- RL360 Products Review 2025: Read this before you invest
Popular choices include offshore investment platforms, international ETFs, and diversified portfolios. Many expats also consider pension transfers (such as SIPPs or QROPS) to maximise tax efficiency and long-term growth.
Tax efficiency often comes from structuring investments through offshore accounts, using double taxation agreements, and managing currency exposure. Working with a financial adviser ensures compliance with both UK and local tax rules.
Diversification is generally safer. Splitting funds across equities, bonds, property, and cash helps reduce risk while maintaining growth potential. For expats, diversification also protects against currency fluctuations and geopolitical risks.
For most British expats, using a UK-based platform like Hargreaves Lansdown while living abroad can lead to account restrictions or ‘frozen’ status due to residency compliance. In 2026, it is generally more secure to use a Tier-1 offshore platform like Swissquote or Saxo Bank. These are designed for cross-border lifestyles, offer multi-currency functionality, and ensure you remain compliant with both UK and local tax authorities.
With the abolition of the non-dom regime and new data-sharing laws, HMRC has increased visibility into expat finances. If you have £100,000 to invest, using an International SIPP or an Offshore Investment Bond (where appropriate) can provide a ‘tax wrapper’ that legally defers UK tax. This is particularly vital for expats in SE Asia who may eventually plan to repatriate to the UK.
While every risk profile is different, a common 2026 strategy for a balanced £100,000 portfolio involves a 60/40 or 70/30 split. We often recommend a core of Low-cost Global ETFs (Vanguard/iShares) to capture broad market growth, a 10-15% tilt toward ‘Value’ sectors to hedge against US tech concentration, and a dedicated portion in high-yield cash or money market funds to take advantage of current interest rates while maintaining liquidity.
