Advice on investing in the US stocks

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Melissa Lee, 2nd May, 2020.

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  1. Melissa Lee

    Melissa Lee Member

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    I am a newbie when it comes to investing in shares and I have about AUD100k available with some savings, which I would like to invest in the stock market for long term investment. My job is secure at the moment. I am keen in buying some US stocks now and I have an account opened in Stake.
    1) Stake charges 0.7% (USD) for every AUD100 transferred. I have done my research and found them to be one of the better ones, however I am just wondering if anyone has any other lower fee option which does not charge such high fee. I would still like to use Stake and they do allow transfer if I have USD available to their account.
    When compared with some foreign exchange trader, they may not have any fee but the exchange rate is pretty low. I haven't traded with them before so unsure if it worth using those trader to transfer to my Stake account. Any suggestion is appreciated. I don't have intention to do the trade very often hence zero brokerage fee works for me.
    2) Is it advisable to do any investment in the US given the current low exchange rate?
    3) Just curious what is everyone is buying right now either in Australia or US and why? Off course, I do understand the rule of doing own research before buying any stocks.

    Thanks heaps.
     
  2. Fargo

    Fargo Well-Known Member

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    I dont worry too much about the fx rate, the 0.7 fee is insignificant when compared to daily swings in fx and share prices, especially if investing for the long term. Swings and Roundabouts ! Perhaps just feed a little in at a time even a few hundred $ every few days. The great thing with stake is you can buy one or less shares at a time and very slowly build a portfolio. If $A drops you will get less share but , you will get more $A dollars for dividends or any profit taking. If it rises you might benefit other ways but take a clip on the way out but it should average out OK. The returns can far outweigh FX loses, a multibagger or 3 will make FX rate insignificant, I would encourage you to at least have a little dabble. An Alternative could be just to buy NDQ on the ASX but that is boring and not educational. What I have bought and am still adding to, and have high conviction is in are Zoom (ZM) Teladoc, Veeva, OKTA, Twillo, Trade Desk, Slack (WORK),Netflix, Quidel, Roku, Shopify, Docu sign, SEA limited, Nivida.
     
    Last edited: 2nd May, 2020
  3. Ross36

    Ross36 Well-Known Member

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    Not advice, but for me.

    1) If you are not a US citizen and not looking to buy individual stocks (you shouldn't be) why not just by a broad based US index ETF that is Australian domiciled. IVV or IHVV (currency hedged version of IVV) will likely serve you well and are very low cost. Read through the ETF thread on this forum, its a goldmine of info.
    2) See IHVV. If you feel you can play the currency game (you can't, it's a graveyard of people trying) go for it. If you want peace of mind then split 50/50 hedged and unhedged.
    3) 50/50 VAS/VGS. Thats 50% broad index aussie stocks because of our franking credits advantages (read the vanguard whitepaper if you're interested), around 30% US broad based index and 20% other developed markets.

    Good luck!
     
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  4. Fargo

    Fargo Well-Known Member

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    Because of the returns Ross, look at the returns just this week in order of what I posted above, 16%, 10%, 3%,13, 7%, 56%, 16%,16%, 7%, 12%, 19%, 18%, 14%, 9%, 7%. Thats on top of 50% gains made just in the last month. NDQ while good has done 2%.
     
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  5. bookworm

    bookworm Well-Known Member

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    With those types of holdings, you may like ARKK or ARKW on the NYSE

    That's how I'm getting similar exposure (and gains) :D
     
  6. Fargo

    Fargo Well-Known Member

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    Just got another bag in a month with Quidel with a 22% rise to-night.
     
  7. Skinman

    Skinman Well-Known Member

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    I just had a look and notice they charge a one off small fee for US tax form on registration.

    Does anyone know anymore about the tax or CGT associated with using an app like this and investing in US shares?

    Is CGT still payable in AUS at marginal rate or do you need to pay tax in US also?

    Thanks
     
  8. zzzzz

    zzzzz Member

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    Alternative is comsec and i'd stick to bluechip companies.
     
  9. Billy.RaltonProperty

    Billy.RaltonProperty New Member

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    With that much money I probably wouldn't invest in individual stocks, especially for long term growth just because its a high risk game. Rather invest in Index funds such as ASX200 and S&P500 these consist of the biggest 200 or 500 companies in one fund. It would evenly distribute your 100k amongst all companies giving your portfolio great diversification and will hedge your risk. these index's also tend to grow by 1.2% year on year so over a time will grow your account
     
  10. Fargo

    Fargo Well-Known Member

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    You only need 15-20 companies you should invest in the best, with the stongest balance sheets if you want safety. Why would you invest in the 499th best company the worst 30% will really drag your returns down. If you only think they grow by 1,2%p/a why would you risk money with them. I would aim to get that everyday.
     
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