Australian (ASX) Stock Market Forum

Brokers - Low trading, buy and hold, International and Domestic Markets

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Gday All,

Im new to Aussie stock forums but i have been scoring your pages for a week straight now trying to find some information, i think i may have found it all but id like a sounding board. I currently have an Etrade account with a portfolio filled with mostly Aussie stocks. I wish to trade in the US markets and while Etrade allows you to do that - man do they sting you for brokerage costs. They are just too high ($200 for 5k worth of stocks) and also im none to keen on the 0.1% p.a custodial costs. I am looking for a lower cost alternative.
As i said i have looked all throughout the forums and have used the search tool many-a-times and i have found and read many articles and posts with regards to Interactive Brokers (who seem to be the way to go). From what i have gathered IB seems to be more geared towards active traders then low trading, sit and hold investors like myself.. If IB have a minimum commission fee of $10 a month (excluding all extras) and If i were to buy 5k worth of stocks as above..

then i would pay; $5000 x 0.08% = $4 (add another $2 to equal the minimum trading fee) for that transaction.

If i were to not make any more transactions for the month i would still be required to pay the minimum commission fee of $10 and so being that i didn't quite make the minimum they would charge me the extra $4 to bring it up to $10.

I am thinking that i would do two trades a year of 5k a pop or seeing as ill be paying the $120 commission fee for the year anyway - make 12 trades a year (one a month) and just keep topping up on my selected stocks.

If i were to do this through Etrade i would be paying $200 for each 5k trade and a 0.1%p.a custodial fee on top of that which would equal $400 +. (not to mention only being able to make the two transactions a year - to save on fees)

So $400+ per year for Etrade or $120 per year for IB....

Have i gotten this right? Or have i slipped up somewhere in regards to hidden fees etc with IB?

Any help would be greatly appreciated!
 
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Re: Brokers - Low trading, sit and hold, International and Domestic Markets

Gday All,

Im new to Aussie stock forums but i have been scoring your pages for a week straight now trying to find some information, i think i may have found it all but id like a sounding board. I currently have an Etrade account with a portfolio filled with mostly Aussie stocks. I wish to trade in the US markets and while Etrade allows you to do that - man do they sting you for brokerage costs. They are just too high ($200 for 5k worth of stocks) and also im none to keen on the 0.1% p.a custodial costs. I am looking for a lower cost alternative.
As i said i have looked all throughout the forums and have used the search tool many-a-times and i have found and read many articles and posts with regards to Interactive Brokers (who seem to be the way to go). From what i have gathered IB seems to be more geared towards active traders then low trading, sit and hold investors like myself.. If IB have a minimum commission fee of $10 a month (excluding all extras) and If i were to buy 5k worth of stocks as above..

then i would pay; $5000 x 0.08% = $4 (add another $2 to equal the minimum trading fee) for that transaction.

If i were to not make any more transactions for the month i would still be required to pay the minimum commission fee of $10 and so being that i didn't quite make the minimum they would charge me the extra $4 to bring it up to $10.

I am thinking that i would do two trades a year of 5k a pop or seeing as ill be paying the $120 commission fee for the year anyway - make 12 trades a year (one a month) and just keep topping up on my selected stocks.

If i were to do this through Etrade i would be paying $200 for each 5k trade and a 0.1%p.a custodial fee on top of that which would equal $400 +. (not to mention only being able to make the two transactions a year - to save on fees)

So $400+ per year for Etrade or $120 per year for IB....

Have i gotten this right? Or have i slipped up somewhere in regards to hidden fees etc with IB?

Any help would be greatly appreciated!
Actually its even cheaper for US stocks.

https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks2#america

0.5c/share, min $1 brokerage.

IB is US based and a huge global player. They're quite legit.
Only problem is the acct opening forms are a nightmare
 
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Gday All,

Im new to Aussie stock forums but i have been scoring your pages for a week straight now trying to find some information, i think i may have found it all but id like a sounding board. I currently have an Etrade account with a portfolio filled with mostly Aussie stocks. I wish to trade in the US markets and while Etrade allows you to do that - man do they sting you for brokerage costs. They are just too high ($200 for 5k worth of stocks) and also im none to keen on the 0.1% p.a custodial costs. I am looking for a lower cost alternative.
As i said i have looked all throughout the forums and have used the search tool many-a-times and i have found and read many articles and posts with regards to Interactive Brokers (who seem to be the way to go). From what i have gathered IB seems to be more geared towards active traders then low trading, sit and hold investors like myself.. If IB have a minimum commission fee of $10 a month (excluding all extras) and If i were to buy 5k worth of stocks as above..

then i would pay; $5000 x 0.08% = $4 (add another $2 to equal the minimum trading fee) for that transaction.

If i were to not make any more transactions for the month i would still be required to pay the minimum commission fee of $10 and so being that i didn't quite make the minimum they would charge me the extra $4 to bring it up to $10.

I am thinking that i would do two trades a year of 5k a pop or seeing as ill be paying the $120 commission fee for the year anyway - make 12 trades a year (one a month) and just keep topping up on my selected stocks.

If i were to do this through Etrade i would be paying $200 for each 5k trade and a 0.1%p.a custodial fee on top of that which would equal $400 +. (not to mention only being able to make the two transactions a year - to save on fees)

So $400+ per year for Etrade or $120 per year for IB....

Have i gotten this right? Or have i slipped up somewhere in regards to hidden fees etc with IB?

Any help would be greatly appreciated!
If you don't intend to trade and rather Invest, I will suggest dont't go with IB.
 
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I am looking to buy Australian stocks and the only broker that would fit my criteria is Interactive Brokers.

Because it is geared towards traders, they expect a minimum number of transactions to be made. It still is better than paying ridiculous commissions to your local broker.

You could try Saxo Bank and see if they would fit your needs. http://www.saxobank.com/

Take a look at Charles Schwab : http://international.schwab.com/public/international/accounts_products

Has anyone here used IB ? I keep hearing their customer service sucks.
 
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If you don't intend to trade and rather Invest, I will suggest dont't go with IB.
Why? I don't mind paying the monthly minimums if it's going to give me access to Asian markets. It's the cheapest option.

I am a buy and hold type investor. I still trade options once in a while.
 

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