Trading on the ASX FROM NZ

[Charlie]

Hi all.
I have been trading on the ASXthrough the ASB NZ platform as I live in NZ
I see they take almost 4% in exchange rate from buy to sell + av $30 commission each way .
so realistically need to make 5% profit on a share to break even .....!

How you guys do it ?
I am not eligible to open a Auzz bank account without living in Auz correct? And if i did how would I trade on- line .

A really novice question , thanks for you guidance .
do Sharies do it differently ?

[nztx]

Sharesies allow Oz trading - 1/2 of a percent no minimum / minimum commission/brokerage for buys / sells

May be some ASX companies they don't include on their tradeable lists (eg options) but they have many / most listed Aust Ords of significance from what I have observed.

Larger orders possibly qualify for lower commission rate.

Sharesies holdings are held in Sharesies Nominee Ltd nominee name on behalf, but can be transferred into your own name I guess

They collect dividends on your behalf/ pay tax for you & you can transfer between NZD AU or USD balances in your account wallet (a small exchange margin is charged & you top up wallet from NZ account or credit card)

No need for your own Aussie bank account

[JBmurc]

I started off with E*Trade that was taken over by ANZ invest .. they include an AUD call account So does ASB sect....If i want to transfer funds I use ASB private bankers which give me a great exchange rate as long as I shift a good amount of capital pa . but one could use any of the well known currency exchanges that beat the banks by many %

You never want to have to convert AUD to NZD on every trade that would cost thousands in extra costs to a trader

[Charlie]

Thanks both, very helpful.
yep , not good when they take currency conversion on every trade .
not happy with that.

[DarkHorse]

Yes ASB Securities can open an AUD account, so dividends and proceeds from sale of Australian shares can be reinvested without conversion.
It's very convenient to use in the same way as other accounts for online banking and cash management acccount for sales or purchases of shares.

Initial investment is a different story - they do take a decent cut on the exchange conversion, although it seems to be around 1-2% rather than 4%.
Some dividend paying ASX cos now also require Australian bank accounts and no longer send dividend cheques.

[Carpenterjoe]

Don't be fooled by the lower brokerage in Australia, they have T+2. This means your funds are not released back to you until 2 trading days have passed. Direct broking or Jarden allow you to keep funds in AUD to avoid excessive ticket clipping, last time I worked it out, they kept an extra 1% compared to my Wise account.

[DarkHorse]

I'm not upwith Wise, would be interested to know something about it.

[nztx]

AUD available within a few minutes, if not instantly with Sharesies - to exchange to other currencies or for further buy orders

[moimoi]

Yes ASB Securities can open an AUD account, so dividends and proceeds from sale of Australian shares can be reinvested without conversion.
It's very convenient to use in the same way as other accounts for online banking and cash management acccount for sales or purchases of shares.

Initial investment is a different story - they do take a decent cut on the exchange conversion, although it seems to be around 1-2% rather than 4%.
Some dividend paying ASX cos now also require Australian bank accounts and no longer send dividend cheques.

Storing your ASX trading funds in an ASB Foreign Currency AUD account would assist you on the conversion issue.

Although foreign currency dividends cannot be directed credited to an ASB Foreign Currency A/c.

Foreign Currency dividend cheques can be deposited to a ASB Foreign Currency A/c at a Branch for the time being.....

[percy]

Link in Aussie have an arrangement with OFX,where OFX will pay your divie into your NZ bank a/c.
I have just signed up for it,however as my next divies from PTB and SHM [both using Link] are a couple of months away, I am not sure how successful it will be.
To save issues I go for DRP when available.