APPL stocks

Hi all,

I'm new to stock trading, but have great knowledge of Biotech and IT. I would like to trade overseas stocks in these fields and I am particularly interested in starting with APPL stocks.

I am part-way through signing up with Interactive Brokers, but I am still a nervous about committing to them, compared to Commsec, for example. I would like to start by putting ~5K into APPL stocks and playing with smaller amounts in IT and Biotech startups.

Can someone please advise whether IB or Commsec is likely to suit me better? Also given the AUD is getting close to parity with USD, if I go with IB, would it be more sensible to trade in AUD or USD? Also are there other factors I should consider.

David.

Hi David,

It looks as though your not quite understanding what currency is used to trade.

If you are to invest in any platform on US stocks (i.e IB or spectrum live), what happens, is when you make a stock or option trade (eg. long, short or option margin position) it is taken as US currency.

What your probably referring to is your "base currency", which if Aus is chosen, a loan (or forex position) is taken to make the US trade (even if AUS is your base currency). The problem here is that if it were a long term position, and the US currency went down, you will actually loose money on the position even if you sell the stock for what you brought it at.

Having said this, you cant do anything about it unless you hedge your currency position (which can be done with IB), however the likely loss (or gain) due to currency exposure is minimal.

I am australian, i live in the UK, and trade on US stocks. For that reason i leave my base currency in GBP (confusing i know). If you live in Australia, spend money in australia, have debt in australia and have a AUS$ bank account, i would DEFINATLEY leave your base currency in AUS.

Hope that helps.

Matt

mtsaustralia said:

I am australian, i live in the UK, and trade on US stocks. For that reason i leave my base currency in GBP (confusing i know). If you live in Australia, spend money in australia, have debt in australia and have a AUS$ bank account, i would DEFINATLEY leave your base currency in AUS.

Matt

Click to expand...

I live in aust with an aust bank account but am trading AAPL in US dollars.

Its was my understanding that you could only trade on the US stock exchange in US dollars. Maybe I am wrong, maybe I have not understood your statement?

weev said:

I live in aust with an aust bank account but am trading AAPL in US dollars.

Its was my understanding that you could only trade on the US stock exchange in US dollars. Maybe I am wrong, maybe I have not understood your statement?

Click to expand...

Your understanding is correct, you can only trade the US market in USD.

mtsaustralia is talking about which currency the account with the broker is kept in.