Brokerage Fees vs Forex Fees - Online US Trading Accounts

[KW]

Hi
I'm looking to buy some US shares - a long term investment, not a trading position. There are two choices:
- use Comsec and pay $200+ in brokerage
- open a US brokerage account and pay $12

The question is do you have to pay Forex fees on top of the brokerage to transfer the funds to the US account, and if so, how much are they? Do you also pay any foreign exchange fees if you use your normal broker or is it included in the commission costs?

No point paying $12 in brokerage only to be hit with $1000 in forex fees. Conversely, better to pay $200 in commission if there are no forex fees.

For the sake of the example assume a $25,000 trade. Comsec charges 0.825% brokerage which is $206.

Hope someone can help
cheers
KW

[_Michael]

The bad news...

You are right the local operators fees for trading o/seas stocks (excl Australia) are simply too high (for example ASB Securities has minimum US $90 per trade, and Direct Broking even more)

Most of the US based online DIY brokers much cheaper ($10-$20 per trade) however I enquired with most of them last year (SCOTT, ETRADE, CHARLES SCHWAB etc) and post-9/11 they will not open accounts for NZ residents.

Some people in NZ are still using these US platforms because they signed pre 9/11/2001

The good news...

There is a fast growing international online broker called Interactive Brokers (interactivebrokers.com) that will apparently accept accounts for NZ residents. You can trade stocks on pretty much every major stock exchange (except for NZX - surprise, surprise!!). There focus is options, fx etc but you can still trade good old fashioned shares on. The downside (depending on how much money you have is that you need to deposit minimum US $10,000).

I decided to go ahead an set up an account with IB, will let you know how I get on and post any information that might be useful for others trying to trade internationally.

[arco]

Halifax Broker (Australian Public Company) do American Stock and Options + Australian and other International stocks and have the following charting (including IB)

Halifaxonline (http://www.halifax.com.au/FreeIntroduction/default.asp) — Saxo (http://www.halifax.com.au/FreeIntroduction/default.asp) — Interactive Brokers (http://www.halifax.com.au/FreeIntroduction/default.asp)
Halifax Options Trader ( Hot ) (http://www.halifax.com.au/FreeIntroduction/default.asp)— DealBook 360 (http://www.halifax.com.au/FreeIntroduction/default.asp) — GFT (http://www.halifax.com.au/FreeIntroduction/default.asp)
Gain (http://www.halifax.com.au/FreeIntroduction/default.asp) — FXCM (http://www.halifax.com.au/FreeIntroduction/default.asp) — Ikon (http://backoffice2.financetechnics.com/RQPAGE/testarea/halifaxflash/halifax.html) — Strategy Runner (http://www.halifax.com.au/FreeIntroduction/default.asp) — Ninja Trader (http://www.halifax.com.au/FreeIntroduction/default.asp)
Think or Swim (http://www.halifax.com.au/FreeIntroduction/default.asp) — FXDD (http://www.halifax.com.au/FreeIntroduction/default.asp) — Metatrader (http://www.halifax.com.au/FreeIntroduction/default.asp)
Iress (http://www.halifax.com.au/FreeIntroduction/default.asp) — Mirus (http://www.halifax.com.au/FreeIntroduction/default.asp) — Alaron (http://www.halifax.com.au/FreeIntroduction/default.asp) — Infinity Futures (http://www.halifax.com.au/FreeIntroduction/default.asp)

http://www.halifax.com.au/gp/default.asp

[drillfix]

There is a fast growing international online broker called Interactive Brokers (interactivebrokers.com) that will apparently accept accounts for NZ residents. You can trade stocks on pretty much every major stock exchange (except for NZX - surprise, surprise!!). There focus is options, fx etc but you can still trade good old fashioned shares on. The downside (depending on how much money you have is that you need to deposit minimum US $10,000).

I decided to go ahead an set up an account with IB, will let you know how I get on and post any information that might be useful for others trying to trade internationally.

Hi Michael,

Curious to know if there are any updates to what or how your move to IB as yet?

Would really like to hear any thoughts, for the positives and negatives of your experience so far as well to know what instruments you are trading and the effectiveness of your move to there.

Please update should you get some time if possible. :)

[drillfix]

I decided to go ahead an set up an account with IB, will let you know how I get on and post any information that might be useful for others trying to trade internationally.

Hey Michael, you there mate?

Curious to know how your going with IB and your experiences so far.

Any updates as yet there buddy?

Also, I was watching a Youtube vid about IB vs Zenfire vs Speedtrader and it shows how there is a slight delay with market data, and some users who trading eMini's complaining about not getting fills in timely fashion which is posing problems for them.

Can you comment on this at all? (please).

cheers in advance.
df