TuringTrader.com first and foremost aims at investors residing in the US. Investors in other locations need to verify the following:
- Are the assets traded by the strategies available to investors in my country or situation?
- Do fluctuations in exchange rates between my country's currency and US$ pose a risk to my investment objective?
Many of the ETFs we are using on TuringTrader.com are not registered in Europe. However, there are multiple ways to remedy this situation:
- Accredited investors often have access to the original U.S. ETFs. Check with your brokerage how to gain this status.
- For many US ETFs there exist European ETFs tracking the exact same indices. While this extra step is a nuisance, the resulting 'native' European portfolio is likely worth the effort.
- Oftentimes, US ETFs can be traded through CFDs instead. However, these products are typically more expensive than ETFs, plus they add some credit risk. Consequently, this this solution is less attractive than finding suitable ETF substitutes.
- And finally, some US brokerages allow accounts to be opened from Europe, see this article on Europoor.com. It is unclear how long this loophole will exist.
In the longer term, our custom portfolios will hopefully close this gap, making it easier for European investors to use our service. We are planning to add features to (a) substitute ETFs in our asset allocation, and (b) convert currencies. However, these features are not available just yet.