US brokerage

[Middle-C]

Hi, I'm looking to trade in the US market. Any brokerage to recommend? =)

 

[Shiny Things]

Hi, I'm looking to trade in the US market. Any brokerage to recommend? =)

If you're going to do more than ten trades a month, or if you've got over $100,000 to chuck around, there's simply nothing better than Interactive Brokers. Great rates (half a cent per share, or you can take the exchange pricing and get paid to trade if you're adding liquidity); generous margin (FF + 1.5% on the first $100k and it goes lower from there); full control over your trade routing if you're the sort of person who cares about where you trade; a solid API; and a huge range of products.

Below that line, it's a little tougher. I normally recommend Stanchart for buy-and-hold investors, but if you're going to be actively trading you can probably do a bit better. The only thing I'd say is don't go for the Singaporean brokers, because they all charge ripoff brokerage fees and a bunch of rubbish fees for dividend handling and custody and stuff like that. Take a look at Ameritrade, and see if they're cheaper than Stanchart for what you're trying to do.

 

[BBCWatcher]

Below that line, it's a little tougher.

Not really. Schwab's subsidiary OptionsXpress Singapore is the winner specifically for U.S. stocks. They have an office in Singapore, a local custodial account (with reasonably low cost currency conversion), and $4.95 flat fee trades on U.S. stocks. Unless you're bigger (Interactive Brokers) or want more than U.S. stocks (and other U.S. traded securities, such as ETFs), what's not to love?

 

[Shiny Things]

Not really. Schwab's subsidiary OptionsXpress Singapore is the winner specifically for U.S. stocks. They have an office in Singapore, a local custodial account (with reasonably low cost currency conversion), and $4.95 flat fee trades on U.S. stocks. Unless you're bigger (Interactive Brokers) or want more than U.S. stocks (and other U.S. traded securities, such as ETFs), what's not to love?

Today I learned! Yeah, hard to beat $5 a trade for US stocks.

 

[BBCWatcher]

Today I learned! Yeah, hard to beat $5 a trade for US stocks.

....But not impossible! You can also buy Schwab's ridiculously low cost index mutual funds via OptionsXpress Singapore. There is zero trading cost to buy/sell them even via OptionsXpress Singapore, as I understand it. I'll list most of the interesting ones by symbol:

SWPPX, S&P 500 Index, 0.03% expense ratio
SWTSX, U.S. Total Stock Market Index, 0.03%
SWSSX, U.S. Small Cap Index, 0.05%

SWISX (International Stock Index) is also available (0.06%), but I think most non-U.S. persons should still choose the Irish domiciled equivalent, for tax reasons.

For example, if you buy SWTSX then the only costs you (a non-U.S. person in Singapore) will pay are the currency conversion charge (~0.3%) to get in, the world's lowest annual management fee (0.03%), U.S. dividend taxes (at 30% withholding), and whatever it costs to transfer funds back into Singapore (with the currency conversion), which depends to some extent on your choice of bank. That's not bad.

U.S. stocks, including these U.S. mutual funds, are (of course) subject to the U.S. estate tax.

 

[Middle-C]

Thank you all for sharing!!! At least I have some reputable names to work with with Google. Appreciate it =D

I'm gonna be a buy-and-hold player - hold for couple months. Not day trading