Advice on investing in the US stocks

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.

 

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.

 

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!

 

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%.

 

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

That's how I'm getting similar exposure (and gains)

 

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

 

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

 

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

 

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

 

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.

 

Up date on my stocks since I posted this some have been saying Property is better for capital growth that is BS. Gain on my US portfolio in the 12 months since this was posted SEA Limited has had 500% gain, Roku 300% gain, Twillo, Shop, zoom, Trade desk, Docusign are up 200%, Slack which i sold is up 75%, Veeva up 70% Netflix 25%, Quidel is down 30% but stii double what I bought it for, Okta a good solid company up 50%. All bought with other peoples money courtesy of tenants. It is there rents that grow your capital and also allows you to spend it. Every after tax $ i spent on interest earned me $100. The capital growth on the property only earned 20 cents for every $ and that is as good as it will ever get. The mistake most property investors make is that they dont buy a property at a price point that will give them enough equity to leveage in to fast growth assetts and high cash flow.

 

What @Ross36 said is sound advice for 80% of people once they understand all the implications.

Not advice.

 

Depends on what you're trying to achieve and your risk tolerance.

I am a long term buy & mainly hold investor so use Interactive Brokers to buy VOO, QQQ and some shares with strong business models e.g. GOOGL, MSFT, NVDA, BRK.B, MA, V, PYPL, etc when they are closer to their 12/26wk EMA. There are also wide stops in place to sell some if the market drops.

Happy with Interactive Brokers algo trading = USD1 brokerage and you can generally buy well.

Please do your own research and read excellent books e.g. by Dr. Alexander Elder, Darryl Guppy, etc.