wow it's that bad? there's on going fees even for long term investment? is it possible to trade with official exchange bodies?It depends on the broker, but in most cases, the stock is bought like an ASX stock. However, the stock is held by a 3rd party holding company, typically a bank, instead of by an official exchange body such as CHESS. Expect annual fees to cover the expense of holding.
As for currency, in some cases you may have to convert the money yourself upfront (like with IB), or your broker may simply "overcharge" you by a fudge amount, and then refund you the difference once the true currency amount is known.
As you're not a resident of a foreign country, shares are held by a custodian (which is a resident), for which there are yearly fees.wow it's that bad? there's on going fees even for long term investment? is it possible to trade with official exchange bodies?
I've never had any problems with Commsec or CMC Markets, and they are simple to use. Interactive Brokers has a very steep learning curve to learn their platform, though their fees may be cheaper.also wats a good platform? i was planning on using cmc markets but just read google reviews saying money just vanished from people's accounts. i need a platform that will not commit fraud or have software glitches.
If it's with the US, you'll need to fill out a w-8ben form. If you don't, you pay 30% tax to the US on capital gains and dividends. If you do, then you pay 0% on capital gains, and 15% on dividends.hey i have another question. do i pay tax to the country in question? do i pay tax twice or just to australia?
Yes, the custody fee is the fee paid to the 3rd party, international custodian.
That reads to me that you don't pay the custodian fee, as long as you make at least 1 international trade per year, for which you'd be charged their brokerage as specified.when they said 1+ trade is free, does it mean ANY amount of trade is free?