Buying company on NZX compared to same company on ASX

[Buffett Jr]

Several companies are listed both on the NZX and ASX.

Some as primarily based in Australia (e.g. ANZ) and others are primarily based in New Zealand (e.g. Trade Me)

What are the benefits/downsides of a New Zealander investor buying ANZ on the ASX or the NZX?

Likewise what are the benefits/downsides of buying Trade Me on the ASX or NZX?

Would have thought for tax reasons for a NZ investor, reducing exchange rate risk it would be better to buy both on the NZX, but wanting thoughts on it as research I've done, can't come to any logical conclusions myself.

[Joshwnz]

If it is an Aus company, then you are not reducing exchange rate risk, as any movement in exchange rate will (well, should) be be reflected in the NZD price of the shares.

Buying on NZX means you don't have to exchange into AUD, and therefore don't have to pay the spread between buy and sell rates.

Brokerage is cheaper buying on NZX (ASB is $30NZD to buy on NZX, but $30AUD on ASX). Not sure about on ANZ though.

Therefore I always buy on NZX.

[G on]

The ASX can have bigger volume to buy and sell into, the biggest advantage, but I generally prefer the NZX side if it is available. I consider the exchange risk is the same. NZX shares of and ASX Co will reflect the rate in the price. An Aussie bank A/c for divs may mitigate the exchange rate risk but for me it helps if participating in extra shares via Bpay and when I take holidays there. Another piece of the puzzle is to look at any imputation credits handed out to NZX shares and see if the same is on offer with the ASX shares held by NZ shareholders.
M2c

[pennyacw]

Most Fund Managers will trade a stock on the ASX rather than on the NZX for the reason for G on spoke of. Generally for retail investors the advantages fall much further in favour of trading on the NZX. However, there is the odd occasion where you might want to purchase a stock on an alternative exchange. For example Intueri Education is far more liquid on the NZX than the ASX.

One major issue with trading on the ASX is that most NZ brokerage firms change a very unfair spread on the currency when investing. In some instances taking a good 3-4% of your return.

[sideline]

............ Another piece of the puzzle is to look at any imputation credits handed out to NZX shares and see if the same is on offer with the ASX shares held by NZ shareholders.
M2c
Hi G on,
my understanding is that the imputation credits attached MUST be the same on both sides! Otherwise that would be streaming of credits to
those investors who can best use them, which the IRD specifically prohibits.

[Buffett Jr]

Ok so general consensus is to buy on the NZX.

With a company like ANZ in the previous example, will the dividend be in a NZD cheque or AUD if you own the stock on the NZX?

[tim23]

I own shares in WBC on the NZX and payment is in $NZ.

[Bigane]

The ASX can have bigger volume to buy and sell into, the biggest advantage, but I generally prefer the NZX side if it is available. I consider the exchange risk is the same. NZX shares of and ASX Co will reflect the rate in the price. An Aussie bank A/c for divs may mitigate the exchange rate risk but for me it helps if participating in extra shares via Bpay and when I take holidays there. Another piece of the puzzle is to look at any imputation credits handed out to NZX shares and see if the same is on offer with the ASX shares held by NZ shareholders.
M2c

How do NZ investors open an Aussie bank account?

[clip]

I believe, for ASB securities for example, you can open a foreign currency account - then just exchange your NZD for AUD at the bank, and select that account when buying ASX stocks where you select which bank account to buy from in the drop-down list. You should get a better exchange rate from the bank I believe, than the automatic conversion when you just buy/sell ASX stocks direct from your NZ account

Someone correct me if I'm wrong? I haven't done it myself but am recalling a post from moosie a while back

[skid]

I believe, for ASB securities for example, you can open a foreign currency account - then just exchange your NZD for AUD at the bank, and select that account when buying ASX stocks where you select which bank account to buy from in the drop-down list. You should get a better exchange rate from the bank I believe, than the automatic conversion when you just buy/sell ASX stocks direct from your NZ account

Someone correct me if I'm wrong? I haven't done it myself but am recalling a post from moosie a while back

I have opened up a foreign acc($US) and exchanged on NZ Forex(much better rate)and simply had the $US put in that acc.(I would imagine you can do the same with $Aus

with ANZ or ofcourse there is ANZ(direct broking) but the hitch is they wont let you transfer out to somewhere like NZ Forex--it has to be another acc in the same currency--(with ANZ bank they did allow that to NZ Forex to exchange

[trader_jackson]

I believe, for ASB securities for example, you can open a foreign currency account - then just exchange your NZD for AUD at the bank, and select that account when buying ASX stocks where you select which bank account to buy from in the drop-down list. You should get a better exchange rate from the bank I believe, than the automatic conversion when you just buy/sell ASX stocks direct from your NZ account

Someone correct me if I'm wrong? I haven't done it myself but am recalling a post from moosie a while back

I'm not sure if this is possible as I thought it has to be linked to a 'cash management account' and the ASB foreign currency is not an australian bank account.

Has anyone actually done this? I would be interested to know for next time as I know you get ripped when exchanging currency over/using ASB Securities (when buying shares)

[clip]

It seems like you need a foreign currency account https://www.asbsecurities.co.nz/section60.asp
You can then choose to settle out of your cash management or foreign currency account when buying/selling https://www.asb.co.nz/help/how-and-when-do-i-pay-for-shares-through-sharetrading-service.html

[tim23]

There used to be some nice little arbitrage opportunities with Lakes Oil which was listed on ASX & NXZ, sell on one market and buy on the other immediately after, I got lucky a few times.

[macduffy]

Hi Buffett JR.

ANZ pay dividends in NZD to investors on the NZ register with a NZ address. I hold shares on both NZ and Aust registers but take DRP shares in lieu of cash for the Aust ones. A bob each way!