US or Aussie Stock Market? - Aussie Stock Forums

Results 1 to 5 of 5
  1. #1

    Default US or Aussie Stock Market?

    Which is better to trade in? US or Aussie Markets especially for options.

    Given that we can get information on US market (e.g. when Dows goes down) and that Aussie Stock Market is likely to follow, is this a good signal in regards to the direction that the Aussie Stock Market is likely to move.

    Can anyone enlighten me on this please? Thank you.

  2. #2
    xtanda's Avatar
    Join Date
    Sep 2007

    Default Re: US or Aussie Stock Market

    In my opinion, US market is better than AUS by far, particularly for option trading

    - the market is more liquid, less prone to manipulation by market maker
    - the size of contract in US option is 100, compare to AUS' 1000
    (good for us that not have big capital money)
    - The number of company that got option is huge compare to AUS,
    also the premium is better.
    - The company relatively have much bigger capitalization
    (i.e compare top 200 US company vs top 200 AUS company)
    hence, the company is more stable/powerful against problems
    - Can do day trading without giving up day job
    - ....

    - to follow the market have to get up early/stay late at night
    - the company is not the name we hear from day to day as we did not live
    there, hence we aren't familiar with their domestic issue
    i.e: we are more familiar with "Bunning" than "Home Depot"
    - Forex rate give additional paper work especially for tax time

  3. #3

    Smile Re: US or Aussie Stock Market

    Thank you. Possible to get proficient with trading without giving up my day job.



  4. #4

    Default Re: US or Aussie Stock Market?

    I think the US market is much cheaper and liquid for option trading. I constantly compare the US and Aussie markets and find that apart from being cheaper and more liquid, it is more transparent and greater competition means transaction costs are lower. Free trader features on even the online trading sites (like TDAmeritrade or eTrade USA) are much better than those available for premium traders in Australia.

    Last edited by theasxgorilla; 29th-March-2008 at 10:05 PM. Reason: Blog spam.

  5. #5

    Default Re: US or Aussie Stock Market?

    I traded Oz options for over five years and just in the last couple of months have shifted my trading to the US.

    The reason for moving my trading is a combination of a few factors. The fees (not only broker fees but ASX charging $1.12 for every option contract traded) were eating too much into profits. Also Oz data is expensive. Trading spreads was cumbersome where the mid price had to be worked out manually.

    What really tipped me over the edge was the Oz MMs refusing to quote or respond to quote requests during some high volatility near January expiry - even on BHP which I was trading at the time. I heard they were fined, but apparently no guarantees that it won't happen again.

    Another difficulty with Oz options is that the MMs can take up to the first hour before quoting. Nothing... not even wide spreads. On the occasions I requested a quote early in trading- usually no response ...

    Totally agree with xtanda that the night time trading is the worst thing. Hadn't thought about the forex rate being a problem at tax time - will have to find out more about that one.

    I really like the ThinkorSwim software for US trading - it all comes free and they are constantly adding to it. The last release has added a back testing facility which is pretty cool. The features are too numerous to list here and the only way is to go through their tutorials. You can demo their software with a paper trading account (I believe without funding a live account) to get a feel for it. http://www.thinkorswim.com/tos/client/index.jsp

    I understand their fees can be negotiable and have heard that they will match other brokerages. I was able to get the ticket charge removed at this stage. They also give a lot of free education and have found their support excellent. Anyway, FWIW, that's my experience so far... but then the last broker I really liked just went bust
    This post is my opinion-please DYOR. Links are posted for interest only & not endorsed by me

Similar Threads

  1. Aussie Stock Forums Launch - Post and MAKE MONEY!
    By Joe Blow in forum Announcements and Site News
    Replies: 43
    Last Post: 17th-August-2010, 10:46 PM
  2. Stock Market Programs and Tools
    By chennyleeeee in forum Software and Data
    Replies: 7
    Last Post: 30th-June-2006, 04:58 PM
  3. Welcome to Aussie Stock Forums!
    By Joe Blow in forum Announcements and Site News
    Replies: 6
    Last Post: 21st-September-2004, 12:29 AM
  4. NEW: Post your own charts on Aussie Stock Forums!
    By Joe Blow in forum Announcements and Site News
    Replies: 0
    Last Post: 23rd-June-2004, 02:22 PM
  5. Aussie Stock Forums Stock Tipping Competition
    By Joe Blow in forum Announcements and Site News
    Replies: 0
    Last Post: 17th-June-2004, 10:07 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums