Access to foreigh exchanges

By bartcreedon, January 30, 2012

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Rather than trading via pink sheets, I am interested in trading directly on foreign exchanges for stocks that list there. I am looking at opening an account with Interactive Brokers (IB). Any thoughts, comments recommendations about IB or other possible platforms? I also was looking at E*Trade until I saw that you cannot access its global markets feature with an IRA account. I am looking to open an IRA account since I have most of my investable funds in one currently.

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10 Comments on " Access to foreigh exchanges"

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Travis Johnson, Stock Gumshoe
Admin
4825
January 30, 2012 6:38 pm

I use Interactive Brokers and like them, but if you’re used to a standard online discount broker it takes some getting used to — very different look and feel. They are designed for traders, so the fee setup is optimized for folks who do a fair amount of trading — commissions are low and execution has been very good for me in Canada, Australia and London (haven’t tried other markets), but if don’t trade at least a few times a month you’ll get hit with some (relatively reasonable) fees.

Bart Creedon
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0
Bart Creedon
January 30, 2012 10:40 pm

How do you pay to convert your base currency funds (US $ for me) into the currency of the market you are purchasing a stock from (e.g. AUS $)? Is the conversion done at a reasonable cost and rate?

Thanks.

Travis Johnson, Stock Gumshoe
Admin
4825
January 30, 2012 10:59 pm

I haven’t checked recent transactions, but I haven’t had complaints about those aspects of IB in the past. The process is a seamless part of trading.

Wayne Eastham
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Wayne Eastham
February 1, 2012 2:50 pm
I’ve used IB for over 10 years but still do not consider myself an expert on their platform. As one who scales in with small positions, I love the low commission rates and if one trades a few options, they cannot be beat, in my opinion. As far as trading with foreign currencies, you can either buy the currencies via Forex and use that money to trade the stocks, or you can purchase foreign stocks with “borrowed” currency and pay a small amount of interest on the borrowed money. Either way, you have the currency risk. At least that is… Read more »
Bart Creedon
Guest
0
Bart Creedon
February 3, 2012 4:59 pm
That’s what I am looking for – the “currency risk” – in that I want to diversify out of US$. Virtually all of my assets sit in US$ today. I’d like a hedge in case the dollar heads south. I see no end to the rate at which the U.S. deficit is growing, nor the rate at which the the Fed is printing money. I consider a loss of purchasing power vis a vis other currencies not an unlikely scenario. That being said, I’m still trying to get through the IB account opening and funding process. It is, indeed, labor… Read more »
jrlowelljr
Irregular
3
February 7, 2012 2:30 pm

I have been on IB for just a few months, and the fees/commissions are great, especially after using Vanguard’s brokerage services ($20/trade, $50 more for Canadian). The WebTrader takes some getting used to, but their phone-in customer service is very helpful. I have an IRA with them, and setting up a monthly draw was tedious, but with their customer service assistance I was able to get it done.

blufox
Member
12
February 5, 2012 5:41 pm
Bart, I had an account at IB years ago and reopened my account last year, it is a smaller account than my Fidelity account but I wanted to compare the two. I hold 9 positions in IB and 78 in Fidelity where I use Active Trader Pro. I wanted to see which of the two has better executions and where it was easier to trade in foreign stocks in their respective currencies. For foreign trading IB is better. One can exchange dollars in the Forex market and achieve better rates than at Fidelity. In terms of executions I haven’t noticed… Read more »
Interactive Broker Salvatore Recco complaint Asia
Guest
0
No possibility to complaint with Interactive brokers Asia and Salvatore Recco Due to instability of Interactive Brokers systems and incompetence of “Salvatore Recco”, I lost lot of money. I could have recovered it with a competent and professional broker. But Salvatore Recco(Head of Institutional Services Asia) was slow, not polite, unprofessional, giving lame excuses and possibly make big money on my back. 0/IB asia has no independent complaint officer(the CEO so wont bother to answer). If a senior IB staff is incompetent, you could not complain.No one is checking what they are doing in Asia, so manipulations of the records/transactions… Read more »
reggits
Irregular
11
April 23, 2014 10:54 pm

So is it still the case the Interactive Brokers is a good platform, if not the recommended one for international exchanges? If not, where should I look instead? Thanks for your help everyone!

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