International Buying US shares in Australia

Discussion in 'Shares & Funds' started by hash_investor, 23rd Apr, 2019.

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  1. hash_investor

    hash_investor Well-Known Member

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    Guys, which broker do you use to buy international shares in Australia. I am looking specifically the US market.
     
  2. geoffw

    geoffw Moderator Staff Member

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  3. Froxy

    Froxy Well-Known Member

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    I think stake is worth a look depending on your situation
     
  4. geoffw

    geoffw Moderator Staff Member

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    I assume stake.com.au? They look reasonable. Do you use them? How do you find them?
     
  5. geoffw

    geoffw Moderator Staff Member

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    There's another thread on low cost brokerage, which covers mostly domestic, but some international. Stake rates a few mentions.
    Low-cost brokerage
     
  6. Froxy

    Froxy Well-Known Member

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    Havent used them but follow fintech stuff with interest.
    They also dont do joint holdings which is my preferred but about to give them a go.

    Exchange rate looks reasonable and no brokerage is nice so allows for a smaller positions.
     
  7. Blueskies

    Blueskies Well-Known Member

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    Try Interactive Brokers
     
  8. Summer of George

    Summer of George Active Member

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    Stake is good for a longer term view
    IB is excellent if you are planning on trading
    Used both and would recommend both depending on what your needs are
     
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  9. MTR

    MTR Material Girl Premium Member

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    Seems US stocks hitting new highs
     
  10. geoffw

    geoffw Moderator Staff Member

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    Yep. The Dow Jones is almost back to what it was in January last year.
     
  11. MTR

    MTR Material Girl Premium Member

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    Yes shares are doing way better than property atm
     
  12. JetstreamVic

    JetstreamVic Well-Known Member

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    I use Stake, was easy to register, but took a bit of time for the money to go from my account to the Stake account so that I could purchase.

    Having said that I am not a trader - Just wanted to own part of Disneyland!

    Up 20.22% since December - Wish I had of gone all in :(
     
  13. geoffw

    geoffw Moderator Staff Member

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    I see now how stake.com.au works. They claim zero commission on trades and say that they make their money on currency transfers and funds. But it seems to be a substantial amount. While I don't know how other brokers work, a transfer of $1000AUD gives $25USD less than a direct transfer. This can turn out to be somewhat expensive.
     
  14. JetstreamVic

    JetstreamVic Well-Known Member

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    I read it as 0.70c USD per $100AUD.

    So if you were to purchase $1000AUD worth of shares, that would be $7USD in fees.

    There is a one time $5USD fee on the first deposit.

    Also important to note that the transfer fee is only per deposit. So if you transferred 10K to an account, you could buy and sell from that account as much as you want and it would cost you nothing.

    It is horses for courses tho, and at certain levels a fixed price brokerage amount would be beneficial
     
  15. geoffw

    geoffw Moderator Staff Member

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    There may be card fees as well.

    I enrolled and entered $1000 to transfer by debit/credit card, and was given USD676.24. POLi online banking (I don't even know what this is) gave $689.87. Bank transfer doesn't give an amount, it depends on the rate when the transfer actually takes place.

    Transferwise gives $701.39 (less than it was a few hours ago).

    So potentially a bank transfer is good value, as POLi effectively only costs USD11.42. But I can't tell.
     
  16. Froxy

    Froxy Well-Known Member

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    Cheapest is EFT, card fees and poli are extra. Only completed one transfer but fee seemed reasonable from memory
     
  17. geoffw

    geoffw Moderator Staff Member

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    Then it may be quite reasonable after all. Thank you.
     
  18. geoffw

    geoffw Moderator Staff Member

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    Just one thing that didn't click with me first up. The transfer fees are USD.70 for every AUD100 - so that's around 1% rather than .7%.
     
  19. Froxy

    Froxy Well-Known Member

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    Thos might clesr it up. Trying to find the minimum. What is the fx fee with commsec?
     

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  20. geoffw

    geoffw Moderator Staff Member

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    For US shares:

    Commsec broking is USD19.95 for up to $5,000, USD29.95 for up to $10,000 and then 0.31%. I'm not sure of the fx fee, it's already too expensive.

    Interactive Brokers charge USD .005c per share with a minimum charge of USD1. I don't know about conversion. There is a minimum of USD10 pm, which gets charged if you don't use that much brokerage.

    Saxo charge USD.01 per share with a minimum of USD9.90. Conversion is .1% and there's USD100 charged if you go 6 months without a trade.

    IG charge USD.02 per share with a minimum of USD10. Conversion is .5%. There's a quarterly USD50 charged if you have a balance and less than three trades per quarter.

    ** Verify any figures given here! **