Trading the ASX from NZ with $A account with NZ Bank

[Joshuatree]

Hi am planning on joining Etrade and looking forward to a live platform for the first time.Westpac wont/cant give me an $A denominated acc which is my first choice. Can anyone please share which banks etc offer this in NZ or do i have to be constantly changing funds to $A and back to $NZ, maybe National offer this ? Thanks

[4be]

ASB offer a AUD Foreign Currency Account. No need to switch between NZD & AUD each trade -thats a killer.


https://www.asbsecurities.co.nz/section60.asp

4be

[JBmurc]

Well when you join E*Trade you will be given a ANZ AUD account to which any sales of shares will credit too.
If you are planning on bring funds to an from NZD to AUD to NZD it would pay to get an AUD nom account with your bank I have one with ASB which charge me a very low .7-8% interbank rate compared to my standard ASB chq account which is has a higher charge rate

[drillfix]

Josh, forget eTrade, try IB (interactive brokers)

Much more on offer, much cheaper brokerage, more instruments and a whole heap of other benefits which are too much to mention here.

And you can add your money and specify AU as your default currency.

eTrade is just uses IRESS and not their own platform, which is ok, but falls short imo, so there are trade offs to be made, some disadvantages as well.

Each to their own though.

[JBmurc]

Josh, forget eTrade, try IB (interactive brokers)

Much more on offer, much cheaper brokerage, more instruments and a whole heap of other benefits which are too much to mention here.

And you can add your money and specify AU as your default currency.

eTrade is just uses IRESS and not their own platform, which is ok, but falls short imo, so there are trade offs to be made, some disadvantages as well.

Each to their own though.

how much cheaper drilly I seen E*trade has done me quit a few $19 trades sub 25k I don't know the exact details

[drillfix]

$6.00 each way for trades up to $7K, which means $12 round trip (in and out).

Suits me to a tee as many times I prefer to scale in and sometimes out of trade.

[JBmurc]

$6.00 each way for trades up to $7K, which means $12 round trip (in and out).

Suits me to a tee as many times I prefer to scale in and sometimes out of trade.

how much to buy 20-25k lots

[drillfix]

Not sure JB, may need to visit the IB website and check it out for further rates.

http://www.interactivebrokers.com/en/p.php?f=commission

Actually, found it: 0.08%of trade value

[POSSUM THE CAT]

J B MURC Check what volume of trades you have to do each month with E Trade to get that rate & another catch was how much you have to have in your E Trade account at very low interest.Have not checked lately but previously found it was not worth while. Read the terms & conditions as there were some big snags in dealing with them then evenwith ANZ Australian domicled Bank accounts. Westpac Broking was the best deal but at the time you had to be an Australian resident and they would work with any Australian bank account

[Rusty]

Ive had a look around the IB website. It seems a bit confusing as to the costs. What are the base fees? It needs a 10k minium deposit by the looks.

[drillfix]

Ive had a look around the IB website. It seems a bit confusing as to the costs. What are the base fees? It needs a 10k minium deposit by the looks.


Ultimately Rusty, what are you plans mate?

If you want to Trade, dont worry about the 10K for IB as you will need that at least to trade.

If you want to invest and occasionally trade then go to eTrade as that is more for retail type investors, traders.

As I say, each to their own and knowing what your needs are is important, because once your set up you cannot have the best of both worlds unless you use both worlds / speech off

[Joshuatree]

Awesome thanks for sharing guys.Im not a day trader and wont be doing large numbers(although with a live platform i may go berserk hee hee). More of a n older slowpoke who spends all day on the the threads on H/C and here looking for ops. One other thought thats just bubbled up is buy and sell signs thru charting. I see a great advantage here( knowing when to sell has always been a weak point for me) so will need to study abit re vol and M/A , quite ignorant but just after a few simple tools. Thanks agin, the Macro pic/Reality of things looking scary again.

[Rusty]

Plan is to learn as much as possible. Been using the ASB securities and have been trading small amounts. The $30 buy $30 sell fee starts to add up, and means I dont trade as much as I would if the fee was lower. I find this site real educational. I think ill stick with the asb untill I have more confidence in my abilities.

[drillfix]

Yeah Rusty, they do add up, but how much dollar per trades are you making? If the answer is below 7K per position, per trade then you will go bankrupt.

Being with a retail broker such as commsec and doing a tally, I had done nearly 6 grand on trade commission with them for a certain duration and then thought, Naahh way, its only beneficial for longer term positions as what I have kept the account open for, longs primarily only.

With IB, its easy to change your mind or re-assess without costing the earth each time. As using such an account for trading, many times we find ourselves entering a position and then realise that we are got it wrong and need to exit for say brokerage so its more easy to endure and learn from mistakes so to speak, which we also get the benefit of being less costly.

Hope this helps anyway.

[Rusty]

Ive had mixed sucess. Made lots of losses and wish I had bailed on them earlier than I did. Have learned this lesson now. Still made some sweet profits that cover the losses. I figure its all knowledge. 7k per trade, Ill get to that level. But yeah Still a very small fry.
Thanks for the time, it all helps.
With IB is there any other costs? Do they charge for live data? Ive been through there site, but you being a user would know.

[drillfix]

Ive had mixed sucess. Made lots of losses and wish I had bailed on them earlier than I did. Have learned this lesson now. Still made some sweet profits that cover the losses. I figure its all knowledge. 7k per trade, Ill get to that level. But yeah Still a very small fry.
Thanks for the time, it all helps.
With IB is there any other costs? Do they charge for live data? Ive been through there site, but you being a user would know.

Rusty, there are other costs if but you can just use the Subscription manager to cancel any data feeds you dont want.

There is a $37.50 (I think) charge per month for ASX data which is basically cost for example if you trade ASX which no doubt you will. And then if you trade US stocks there is a parcel which you get bundled and it is about 10-30 US per month but free if you have commission of 30US per month.

Depending on what you choose to trade you can just turn it on or off for that month you wish to trade it etc etc.

I also make many trades less than 7K as it is easier to duck in and out of trades without taking a larger hit, with most being of around a 1.5K to 3 or 4K on some stocks, as this can give you a quick exit for the door if you wish but that also depends on your account size and Risk Reward Ratio.

As you probably know, these markets are becoming very testing to trade with risk increasing it seams. At least with IB I can add other data and trade other instruments which also gives you the ability to take the short side so hence there is movement to benefit from no matter which way the markets are headed.

Again each to their own though, but at least you have more insight. Maybe not suited for you now but something to think about for later on perhaps.

Cheers and good luck mate~!

[Rusty]

Thanks for the info. Ive started the application to set up an account. The subscription for live data is very reasonable, less that one in out $60 trade. Yeah it is a very difficult market to make profits right now but Im thinking in this market there are plenty of opportunities. Then again if the US credit rating gets down graded the markets will maybe head south, even better for us looking to buy.
Thanks again

[drillfix]

Good stuff there Rusty, no doubt you will need a Margin T account whilst going through the application as if you get stuck this should be selected:

When completing the application, ensure to select:
Account Type: REG T Margin
Funding method: ‘WIRE Transfer’ only method available in Australia


Also, if you need reference to somebody rather than to have to deal with US or HK or UK, there is a fella in Australia whom handles most of the IB inquiries and this regional questions with regards to ASX or whatever.

His name is Neil Swanson and his contact details are:

Neil Swanson
Institutional Sales
Interactive Brokers LLC
Tel: + 61 (2) 8093 7301
Mobile: +61 (4) 0463 1004

He can solve or answer any questions you may have. Yet if there is somebody in NZ that is a representative then I encourage you to ask Neil whom they are with their details etc etc.

Allow up to a week of getting familiar with the whole Shebang as TWS is a huge battleship type program and there are Numerous Tutorials and walk through's to become familiar with it.

I am starting to sound like an IB salesman now so I better stop rambling and feeding this thread info as I am only another trader using them for a broker as well for a Trading account.

Good to see more folk jumping on board though and I can assure you that from making such a move you will have to learn much more than you would with any retail broker out there.

Cheers again, please let us know how you get on and for what its worth, I hope that helps :)