Anyone tried investing in US stocks indirectly via ETIS?

[aster]

Any thoughts? Are there any other benefits apart from convenience (traded on the ASX so less paperwork, normal trading hours, etc.)?

Has anyone "invested" in Apple or Google stocks this way?

 

[qldfrog]

Re: Has anyone tried investing in US stocks indirectly via ETIS?

Any thoughts? Are there any other benefits apart from convenience (traded on the ASX so less paperwork, normal trading hours, etc.)?

Has anyone "invested" in Apple or Google stocks this way?

Got some EXTRSEC ETS BERK [ETSBRK] for AUD/US edge and a bit of a safer bet..
So far OK
Chosen for convenience and low cost, direct purchase on the US market being not that easy or cheap

 

[aster]

Have you seen any correlation between US market movements and that of the AUD? I mean if the US markets take a hit then the AUD will probably dip as well, so one will cancel (well, at least counteract) the other with regards to the ETIC trading price, right?

 

[aster]

How decent is the turnover on ETIS for companies like Google or Apple? Is it a liquid market or is the opposite true?

Also, where can I find historical charts for ETIS like ETSGOO? Seems like the ASX site doesn't have them...

 

[Neoss84]

Re: Has anyone tried investing in US stocks indirectly via ETIS?


Got some EXTRSEC ETS BERK [ETSBRK] for AUD/US edge and a bit of a safer bet..
So far OK
Chosen for convenience and low cost, direct purchase on the US market being not that easy or cheap

Have ETIS been discontinued? And if so, did you have to sell your Brk.B shares?

 

[qldfrog]

Have ETIS been discontinued? And if so, did you have to sell your Brk.B shares?

This was years ago and i sold out so long ago I even forgot if it was with profit or not.
I ended up opening a comsec international account to invest in the US, ETF leveraged or not, and direct shares
on the asx, i hardly play international.
Sorry but that is all i can help you with.

 

[Neoss84]

This was years ago and i sold out so long ago I even forgot if it was with profit or not.
I ended up opening a comsec international account to invest in the US, ETF leveraged or not, and direct shares
on the asx, i hardly play international.
Sorry but that is all i can help you with.

Thanks for your response. Ultimately, I'm trying to work out the best way to buy BRK.B
I know you said you have a Commsec International account but you don't play international much, but any major pitfalls or things I should know with buying BRK.B through Commsec International? (from a logistic point of view)

 

[qldfrog]

Not really the expert, but being O/S you need to fill US tax forms.comsec trading fee and currency conversion are high,. But website ok if a bit slow from here(Australia)
Relatively satisfied
Not the best timing to move from AUD to USD...

 

[cutz]

Hi Neoss84

Are you planning on buying and holding BRK.B, I had a look at the comsec rates, they seem off the charts, why don't you set your self up with a proper US based broker, you'll be better off in the long run !

 

[Neoss84]

Hi @qldfrog, yeah that's the sticking point. I can't really see the AUD dropping much lower and it's almost certainly going to rise in the long-term. Any excess performance by BRK might just get wiped out by the currency change.

Hi @cutz , thanks for your response. I was more just doing my research. For the currency reasons I alluded to above, I'm probably going to hold off. In saying that, can you recommend 2-3 proper US based brokers (Do you use one?) When you say the Commsec rates seem off the charts, are you referring to the exchange rate and/or brokerage? Any other insights will be greatly appreciated.

 

[cutz]

Hi Neoss84

Yes referring to comsec brokerage rates, they are extremely pricy, not sure how fx works, they'll probably sting you on currency conversion as well.

Anyhow, I can highly recommend Interactive Brokers, I use them and so do many ppl here on this forum.

There's a company called Tastyworks which has popped up on my radar, good looking platform but don't do aussie stuff.

 

[Neoss84]

Hi Neoss84

Yes referring to comsec brokerage rates, they are extremely pricy, not sure how fx works, they'll probably sting you on currency conversion as well.

Anyhow, I can highly recommend Interactive Brokers, I use them and so do many ppl here on this forum.

There's a company called Tastyworks which has popped up on my radar, good looking platform but don't do aussie stuff.

Hi @cutz

Thanks for the recommendation of Interactive Brokers and for mentioning Tastyworks. I was looking at Interactive & IG Markets. Any thoughts on buying American stocks such as Apple and Berkshire when AUD is already so low? Just after general advice.

 

[cutz]

Hi Neoss84

I'm not one hundred percent sure these days but I think when you buy US stock within Interactive Brokers you end up short US dollars, ie negative US dollar balance, then it's your call if you want to do a fx transfer, obviously you'll be exposed to currency risk.

Can't really answer the timing question, I'm not sure which way the Aussie is heading.

I'm also looking at buying a couple US stocks I fancy but haven't pulled the trigger yet, I can check it out tonight, (maybe)

 

[cutz]

Hi Neoss84,

Just wanna clarify my previous post, finally pulled the trigger!

The system simply does a currency trade so no negative US dollar balance.

 

[HelloU]

Thanks for your response. Ultimately, I'm trying to work out the best way to buy BRK.B
I know you said you have a Commsec International account but you don't play international much, but any major pitfalls or things I should know with buying BRK.B through Commsec International? (from a logistic point of view)

for info,
chi-x do an alternate product that tracks many of these top US stocks individually and called a transferable custody receipt (tracrs). They are bought and sold the same as "normal" shares except they are not offered by all broker platforms as they are a chix only product - so you will have type the ticker into your platform and see what comes up (I have 4 platforms and only 2 will allow me to trade these)
Apple is TCXAPL
Berk is TCXBRK.... etc

All done in aussie dollars etc same as a normal trade.

 

[InsvestoBoy]

for info,
chi-x do an alternate product that tracks many of these top US stocks individually and called a transferable custody receipt (tracrs). They are bought and sold the same as "normal" shares except they are not offered by all broker platforms as they are a chix only product - so you will have type the ticker into your platform and see what comes up (I have 4 platforms and only 2 will allow me to trade these)
Apple is TCXAPL
Berk is TCXBRK.... etc

All done in aussie dollars etc same as a normal trade.

I didn't know about this but it looks like you can see them on CommSec.

Spreads look like they are 3% on average!!! Depth doesn't look crash hot for some of the names, better for others.

Seems like people will do anything to avoid getting a US broker account. Spare yourselves! Get an Interactive Brokers account!

 

[cutz]

Hi Neoss84,

Just wanna clarify my previous post, finally pulled the trigger!

The system simply does a currency trade so no negative US dollar balance.

Oh, forgot to mention, reason for this is when I got transferred to IB Australia my account reverted to a Cash account therefore not allowed to be negative cash, a Margin account will allow a negative cash balance like what I described in post #13.

 

[Neoss84]

Oh, forgot to mention, reason for this is when I got transferred to IB Australia my account reverted to a Cash account therefore not allowed to be negative cash, a Margin account will allow a negative cash balance like what I described in post #13.

Hi @cutz thanks for both your updates in post #14 and #17. When I pull the trigger, I think I"ll use IB. Given weak Aussie dollar, will probably only do so if there's a severe double dip in the US.

 

[cutz]

Hi @cutz thanks for both your updates in post #14 and #17. When I pull the trigger, I think I"ll use IB. Given weak Aussie dollar, will probably only do so if there's a severe double dip in the US.

No worries mate, once you're set up with IB I'm sure you'll be pleased with it.

 

[Dona Ferentes]

I didn't know about this but it looks like you can see them on CommSec.

Spreads look like they are 3% on average!!! Depth doesn't look crash hot for some of the names, better for others.

Seems like people will do anything to avoid getting a US broker account. Spare yourselves! Get an Interactive Brokers account!

Its not somewhere I want to play with, because of spreads and other unseen costs, but Chi-X now offers Australian investors access to 35 listed US companies through its TraCRs, which function similar to American Depository Receipts in the US. They give the purchaser a beneficial interest in an underlying share. So buying one Zoom TraCR means an investor holds the beneficial interest in one Zoom share.

The benefit to Australian investors, Mr Jokovic said, was that they are traded in Australian dollars during local market hours. Dividends are in Australian dollars (with US taxes and fees deducted) and they are cleared through the ASX’s clearing system in the same way as local shares.

“In a time of heightened volatility and heightened risk, diversification is one of your only tools if you’re going to be in the equity market. And diversification into big global proven brands is not a bad place to be,” Chi-Xs Mr Jokovic said. First launched in late 2018 with its Apple TraCR, the uptake of the product had been “slower than we would have liked”, Mr Jokovic conceded.

The exchange has seen just 1300 TraCR trades in total since launch, with its TraCR assets under management sitting at about $30m. “It isn’t significant, but it’s growing,” he said, adding that he is targeting $200m in assets under management in the next 12 months.

Chi-X has partnered with local market maker Nine Mile Financial, run by ex-Macquarie banker Morgan Potter, to facilitate the increased demand and uptick in trading activity during the COVID pandemic, including in the Chi-X-quoted TraCRs.

Bringing Nine Mile on would be beneficial due to the tighter spreads the market maker would facilitate, Mr Jokovic said. Mr Potter, who was global head of ETFs for Macquarie before he left to set up Nine Mile in 2016, said TraCRs provided diversification benefits at a time when investors should be investing cautiously.

“As a relatively new player in the market maker space, which has traditionally been dominated by major global financial institutions and investment banks, agility was a critical factor for us when considering an exchange,” Mr Potter said. “Our decision to partner with Chi-X was driven by a belief in their products, agility and a joint desire to deliver better outcomes for Australian investors.”

Nine Mile Financial joins Deutsche Bank, Virtu Financial and Susquehanna as the fourth registered market maker on Chi-X.

Market makers. Low turnover. Taxes (W8-BEN). fees. Far too sophisticated for me.