Investing in Bonds & Fixed Income: Guide by Country
Bonds provide portfolio stability and income. After the 2022 rate cycle, developed-market government bonds offer yields of 4–5% — the most attractive in 15 years. For capital preservation and income, bonds belong in most long-term portfolios. Brokers, FX costs, and regulation vary significantly by your home country — select yours below.
Benchmark: Bloomberg Global Aggregate
Best UCITS ETF: AGGG (iShares Core Global Aggregate Bond UCITS ETF)
Primary currency: USD
Choose your home country
Indian investors
INR → USD
Converting INR to USD through IBKR costs ~0.1% vs 0.5–1% through Indian bank wire. On ₹8.3 lakh ($10,000), IBKR saves ₹3,500–7,500 vs a standard bank conversion.
UK investors
GBP → USD
Converting GBP to USD via HL costs 1% each way. IBKR charges 0.1%. On a £10,000 investment: HL charges ~£100, IBKR ~£10.
Australian investors
AUD → USD
CommSec International charges 0.6% FX each way. IBKR charges 0.1%. On A$15,000 ($10,000 equivalent), CommSec costs ~A$90, IBKR costs ~A$15.
Singaporean investors
SGD → USD
Tiger Brokers and moomoo offer competitive FX rates for SGD→USD conversions (0.2–0.3%). IBKR remains cheapest at 0.1%. On S$13,500 ($10,000), difference is S$13–27.
UAE-based investors
AED → USD
AED/USD is pegged at 3.67 — there is effectively no currency risk when UAE-based investors buy USD-denominated assets. FX conversion costs are minimal (the peg eliminates rate fluctuation, only the spread matters).
Key risk
Interest rate risk; currency risk; credit risk in corporate/EM bonds; inflation eroding real returns