Buying US shares

[7]

Hi,

just wondering if anybody trades US shares online, and what online provider do you use.

I've found one provider that allows me to buy US shares, but it costs $100 per trade, with a minimum trade of $10,000.

If there's any better online brokers out there please let me know.

 

[wayneL]

www.interactivebrokers.com

$0.01 per share with a $1.00 minimum

 

[7]

Thanks for that, I was looking at buying some shares priced around $0.0001 though, so a $0.01 fee on top of this per share could prove expensive.

Any other ideas?

 

[wayneL]

haha, yes that would prove to be expensive

 

[wayneL]

$0.0001 ???? Is this some OTC stock or sumthin'?

 

[xtoreus]

Hey guys,

Sorry I am a noob at this but: Can an Oz buy US share? Is there anything that needs to be done or is it pretty much stratightforward as opening a ComSec account?

Thanks guys, want to buy some Nasdac shares for mid to long term and wondering on the best option

Take care

 

[boiler123]

If you are buying US shares to hold for med to long term and not trade, then opening an account with Comsec is one option. But, they will require you to do one trade a year, if not - inactive account - then there is a fee to be paid each year (unlike opening an account with them to buy Australian shares - there is no requirement to buy or sell each year). You can also buy US shares via Macquarie Bank - need to open 2 accounts: a A$ and a US$. Both Comsec and Macquarie Bank require you to put the US$ upfront before you can place an order. They use the same broker as Comsec - Pershings (a subsidiary of Bank of NY), and your US shares are hold by Pershings. In order to transfer your US shares from Pershings to the company share registers, it takes a bit of effort. Other forumites have recommended interactivebrokers - really cheap commissions - but when I contacted them for questions, they did not answer my questions, only wanted me to open an account first (not good customer service - I wanted to understand everything before doing things). In terms of tax, if the shares pay dividend then you have to declare them in your tax return and fill out the US tax form (cannot remember what this form is called). The best way is to check with your accountant. I am not giving you advice, but information for you to do further follow up.

 

[ChilliBlue]

Are there any sites or books that you could refer me to with regards to buying US share or;

should I look at a managed fund of US shares

 

[kam75]

Are there any sites or books that you could refer me to with regards to buying US share or;

should I look at a managed fund of US shares

Why? What do you want to do?

 

[ChilliBlue]

Why? What do you want to do?

Thanks for the interest Kam.

I would like to start researching purchasing one or 2 US shares

 

[weird]

Thanks for the interest Kam.

I would like to start researching purchasing one or 2 US shares

if you want to 'research' why not check out http://www.investors.com/ which is William O'Neils' site or http://www.valueline.com/ ... you could do far worse.

 

[Dowdy]

Are there any sites or books that you could refer me to with regards to buying US share or;

should I look at a managed fund of US shares

Have you been watching fox business with their recommendations to buy bank stocks?

 

[nazzysmith]

If your an Aus investor be sure to weigh in the strengthing AUS dollar to the USD. Very soon the Aus dollar could outstrip the USD.

Therefore any profits could be lost through currency exchange.

Nazzy

 

[weird]

If your an Aus investor be sure to weigh in the strengthing AUS dollar to the USD. Very soon the Aus dollar could outstrip the USD.

Therefore any profits could be lost through currency exchange.

Nazzy

if a us stock went up 50-200%, would currency exchange right now be an issue ?

 

[nazzysmith]

if a us stock went up 50-200%, would currency exchange right now be an issue ?

Depends on how long you are on the stock and note that my comments where to weigh it into there decision.

Ongoing dilution of the US currency is not new news.

IMO the Aus dollar is well placed to overtake the USD

We have ongoing interest rate rises and the USD is stuck nearly at zero.
(And may not change soon, Ben Bernanke has indicated this)

Aus is well placed to continue strong growth as opposed the the US which is staring down the barrel of a long recover.

Therefore if you are buying short term it probably wont affect you.

However if you are medium term say 2 to 3 years. 50-200% could become 30-170%.

So you would need to weigh that into your equation

Again my emphasis is weigh it into your equation.

Don't not buy because of currency but do be aware that it could take the shine off the end result.

I currently own RFE which is located in the USA but it is listed on the ASX. Im still working out what the devaluing of the US dollar will do as it is located inside of the USA. However it is in the 50 -200% basket.

I currently own AZM which is in Ghana. There costs to operate are in US dollars. I have been advised that this is beneficial in this instance.

AZM is an ASX gold company and therefore pays with AUS dollars. Thefore as the AUS dollar strengthens cost are reduced. This is a long term play so it is highly relevant. Ongoing of the USD works heavily in my favour here.

Nazzy





Therefore

 

[cutz]

Hi nazzysmith,

Can you see any major downside borrowing USD as opposed to converting AUD to fund US stock purchases.

 

[jono1887]

you could always hedge against your currency exchanges eliminating any risk from any movements..