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Best place to buy stocks like RIO and BHP listed on multiple exchanges?

Discussion in 'Stock Market Nuts and Bolts' started by helpme, Nov 6, 2017.

  1. helpme

    helpme

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    RIO and BHP are huge Australian mining stocks listed on Australian, London and U.S stock exchanges. For Aussies, which are the best place to buy these stocks for maximum financial gain?
     
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  2. helpme

    helpme

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    What I mean by maximum financial gain can be gauged with liquidity, brokerage commission and dividend tax. My guess is London is definitely out due to the high 0.5% stamp fee. U.S is competitive due to lower brokerage fees. The choice is between U.S and Australian exchanges.
     
  3. luutzu

    luutzu

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    Given the high tech algorithm and bankers and corporations pitting one gov't/market against another, I don't think there's much arbitrage opportunity buying into the same duo-listed companies.

    I mean, sure there's that currency fluctuation at buy/sell... but since you can't really control or predict the favourable exchange rate when you want to buy/sell... personally I don't think it's worth the trouble. So if it's my money, I'd just buy wherever is more convenient.

    Without sounding like a prick, the question ought to be whether RIO/BHP is worth getting into; are there other (better) opportunities in those overseas market/s.
     
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  4. Value Collector

    Value Collector Have courage, and be kind.

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    I am not sure on the details of those companies, But I am guessing that the fact the Aussie versions dividends being franked will give you an advantage if you're are paying your tax in Australia.

    Also, if you have an opinion on the future currency exchange rate maybe that will factor into it.
     
  5. skyQuake

    skyQuake

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    BHP in the UK (BLT LN) is trading at 14.24/0.5837=A$24.40 equiv vs $28.24 here
    However the divs aren't franked and you have currency issues and stamp on purchase

    It depends on whether you want franking, how long you intend to hold for, and whether you think Elliot will be successful (trying to get BHP to collapse the BHP AU/BLT LN non arb situation and spin off their petroleum unit)
     
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