StockFetcher Forums · General Discussion · online brokers<< >>Post Follow-up
neskander
6 posts
msg #39755
Ignore neskander
12/25/2005 4:06:08 AM

Hi could anyone please advise if they know of an online broker who would accept membership from Australia. I am new to trading and since StockFetcher only works on American stocks, I would like to be able to buy these stocks if the opportunity presents itself. I have contacted Scottrade and they don't accept membership from Australia. I tried Scottrade because their website indicates they have Ranked "highest in investor satisfaction with online trading services" 6 times in a row and very good prices, $7 per trade. I have never traded and would appreciate your advice and suggestions to other web sites and if there is anything else I should take in consideration when trading on American Stocks from Australia.
Thanks
Bill


scvidar
51 posts
msg #39759
Ignore scvidar
12/25/2005 2:21:47 PM

Try E-Trade they have branches in Australia
https://www.etradeaustralia.com.au/application/index.htm

I use E-Trade in the states and am pretty happy with them. I would presume that even though you are trying to purchase US stocks that you could thru them. Don't know if it helps, but an e-mail to them or a call is cheap enough.


scvidar
51 posts
msg #39760
Ignore scvidar
12/25/2005 3:15:20 PM

And one more for any international purchasers of US stocks.

http://www.turbotrade.com/turbotradewhyturbotrade.html


neskander
6 posts
msg #39761
Ignore neskander
12/25/2005 8:29:42 PM

Thank you scvidar for your help. I sent an email to E-Trade and awaiting their response.
I checked out Turbotrade and it sounds great! the only problem with them is that they require a minimum $25,000 to start the account. It did have a very interesting article regarding the lower fee online brokers which I had no idea about, this is the information following:

Direct Access Trading
Using our TurboTrader software, active traders and traditional online investors can execute orders directly to the exchanges and ECN's (electronic communications networks) by using smart order routing technology to market makers and integrated NASDAQ Level II. TurboTrade understands that poor fills or slow executions cost you money. Our TurboTrader software bypasses third parties by executing your order directly on the exchange ensuring you get the best fill possible. Most traditional online brokers' such as E*Trade, AmeriTrade, and Schwab use b-enabled systems that send trades via email to brokers who pass them off to market makers to be filled manually. These market makers capture "spreads" that are usually between 6 and 12 cents. You can use the same platforms that the Market Maker use for increased profits. The end result is that these $8 trades end up costing you hundreds of dollars in lost profits!

and in another part of their site the following question and answer:
How do traditional, deep discount, and online brokers make profit as they charge as low as $7 per execution sometimes?
Ads are everywhere for low commission trading on Internet with some charging as low as $7 per execution. One must wonder how these companies can charge so little and can still be in business.
The answer can be found in two customs practiced throughout the brokerage industry:

1) Trading against order flow, and
2) Payment for order flow

For instance, take a firm with a big market making operation (such as eSchwab or DLJDirect). They receive an order from the customer and direct it to their market makers, who are in turn as directed to trade against it for a profit. The market maker tries to make "the spread", usually 1/16 or 1/8 (sometimes much more) depending on the liquidity of the stock. If you are trading 1,000 shares, that amount adds up to $62.50 or $125 respectively. Have you ever been on the receiving end of a lousy execution? Have you ever noticed that your discount broker gives you a report at the same exact moment that your stock has halted its momentum or reversed? This is no coincidence.

If a firm does not have a big market making operation or does not make a market in your particular stock (such as E*Trade and Ameritrade), it will direct your order to another firm that does make a market in your stock. The receiving firm will then kick back revenue to the deep discounter to trade against your order. Payment for order flow can range from 1 1/2 pennies per share to over 4 pennies per share (that is $15 to $40 on that same 1,000 shares).




Way2Late
37 posts
msg #39763
Ignore Way2Late
12/25/2005 10:27:12 PM

I believe you could use Interactive brokers, http://www.interactivebrokers.com they have access to the Sidney futures exchanges and have what they call a universal account.

Direct access, quick fills and 1/2 cent per share commisions ($1.00 Minimum commision per trade)

They also have the new IB paper trader which works just like the regular trading platform, but is simulated trading so you can try your strategies without risking any money.

Have used them for 2+ years and haven't had a problem.

Used other brokers, Datek, Ameritrade, MB trading, Morgan Stanley, IB is the only one I can recommend without any reservation whatsoever.




Koronbock
201 posts
msg #39764
Ignore Koronbock
12/26/2005 8:50:36 AM

IB is good. It can be used by international customers. Never had a problem.
I have been using E*Trade from Germany (they are also in Australia) without any problems as well. There is no minimum trade account with E-Trade.

One more thing: Try to concentrate on your trading methodology (trading setup, entries, exits, money management) and NOT on the cost of trading. Unless you are trading a VERY small account and you want to trade often (day trading) the cost of trading is so small these days, it does not pay to go to the "cheapest" broker for that reason.

Good luck.



neskander
6 posts
msg #39766
Ignore neskander
12/26/2005 11:36:25 PM

Thank you to each one of you for your suggestions and help. I am following up on your recommendations. Your experience and sharing has helped me a lot. I have spent many hours researching and your recommendations were great

Thanks again and good luck


shelupinin
120 posts
msg #39767
Ignore shelupinin
12/27/2005 4:54:26 AM

neskander, I'm from Russia and I have account at www.optionsxpress.com. They have opened account for me without any problem, and they don't require a minimum $25,000 to start the account. I recommend you optionsxpress.com, I have been trading with them more than 1 year and have no problem with theyr service.
Alex


BFreshour
139 posts
msg #39768
Ignore BFreshour
12/27/2005 8:51:11 AM

OptionsXpress.com has an Austrailia brokerage and they are one of the top-rated online brokerages.


StockFetcher Forums · General Discussion · online brokers<< >>Post Follow-up

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