Australian (ASX) Stock Market Forum

NDQ.AX vs QQQ when USD is strong

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I was wondering if anyone could educate me, with the USD being so strong against the AUD currently, does it make a difference if I buy NDQ.AX or QQQ? I mean, is my AUD capital going just as far when purchasing each ETF?

I currently only trade international shares, have allocations in QQQ, VGT, IHI, SOXX and a few individual companies. Following the recent coronavirus decline I am preparing to add to my position but with the USD soaring I've realised I have no idea what to do as my AUD capital is becoming very weak.

Also, yes I understand these ETF's have many overlapping holdings, I am happy with the overall allocation.
 
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From an underlying fund perspective they are identical. If you have $1000 AUD and buy NDQ on the ASX or transfer the $1000 AUD to your international broker and sell your AUD for USD then buy QQQ, you will have the same result and exposure.

That said, NDQ is a ripoff with a fee of 0.48% while QQQ is only 0.2%. Sticking with QQQ will also stop you from buying/selling outside NASDAQ market hours where spreads will be wider.

If you have access to international markets already via a good international broker like Interactive Brokers, keep buying your international exposure there, aside from a handful of international ETFs, you will get ripped off buying your exposure on the ASX.
 
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Hello,
If buying from Australia, is buying NDQ cheaper in the long run despite the management fees?

The broker platforms that I’m aware of charge 0.6% to convert AUD to USD, then you can make the trade using USD.

Because of this extra conversion fee, buying NDQ works out to be cheaper I think? Unless there is a way to fund the account with USD with no/lower conversion fees?

How do you guys convert your AUD/USD?
 
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Hello,
If buying from Australia, is buying NDQ cheaper in the long run despite the management fees?

The broker platforms that I’m aware of charge 0.6% to convert AUD to USD, then you can make the trade using USD.

Because of this extra conversion fee, buying NDQ works out to be cheaper I think? Unless there is a way to fund the account with USD with no/lower conversion fees?

How do you guys convert your AUD/USD?
Hi,

I use Interactive Brokers, conversion fees are negligible.
 
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Hi,

I use Interactive Brokers, conversion fees are negligible.
What is the interactive broker conversion fees? I haven't used them and I'm having trouble finding that information on their website.
 
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What is the interactive broker conversion fees? I haven't used them and I'm having trouble finding that information on their website.
Hi,

Info is here https://www.interactivebrokers.com/en/index.php?f=1590&p=fx

To work it out, face value in AUD X 0.00002

So for example if converting $10,000 Aussie ... 10000 X 0.00002 = 20cents commission.

Something like that, its not much, last time I placed a NYSE trade I only had AUD in my account, when I purchased the US stock the system did an auto currency conversion, basically it's an FX trade.
 
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Hi,

Info is here https://www.interactivebrokers.com/en/index.php?f=1590&p=fx

To work it out, face value in AUD X 0.00002

So for example if converting $10,000 Aussie ... 10000 X 0.00002 = 20cents commission.

Something like that, its not much, last time I placed a NYSE trade I only had AUD in my account, when I purchased the US stock the system did an auto currency conversion, basically it's an FX trade.
Thanks. Just read through all their pricing information. Looks really good and probably the cheapest I've seen!

I noticed it says minimum $2 USD per order to convert. So I'm guessing that means we only get the "0.00002 x amount" rate if converting more than $100,000 worth at a time.

Plus the additional 0.005 USD per share for each order. This also has a minimum of $1 USD per order.

If I was to use it, I'd probably be buying 2k AUD worth a month, so I would pay the minimum $2 USD per order for the conversion + the minimum $1 AUD per order. Comes to a total of $3 AUD for the order. Then I need to pay the inactivity fee every month, which is ($10 USD - $x spent on commission).

I think it still works out to be pretty cheap. I might give it a go.
 
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Thanks. Just read through all their pricing information. Looks really good and probably the cheapest I've seen!

I noticed it says minimum $2 USD per order to convert. So I'm guessing that means we only get the "0.00002 x amount" rate if converting more than $100,000 worth at a time.

Plus the additional 0.005 USD per share for each order. This also has a minimum of $1 USD per order.
Hi,

You're reading it incorrectly, note 2 explains it.

The FX order face value ( not commission ) minimum is $2.00 USD on the first tier.

So to be more accurate, the commission is booked up on the USD trade value then converted and charged in aussie, so a $10000 USD trade will cost 29cents AUD to do the conversion at the exchange rate of 0.69.

This is all assuming your account base currency is AUD.
 
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Hi,

You're reading it incorrectly, note 2 explains it.

The FX order face value ( not commission ) minimum is $2.00 USD on the first tier.

So to be more accurate, the commission is booked up on the USD trade value then converted and charged in aussie, so a $10000 USD trade will cost 29cents AUD to do the conversion at the exchange rate of 0.69.

This is all assuming your account base currency is AUD.
Thanks for clarifying. That is even cheaper! Awesome.
 

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