Best Way to Buy US Stocks?

Hi all,

What is the best way to purchase US shares at the moment? I read about eToro, CMC etc but wondering if anyone have recommendations on platforms to get started. I wanted to use Robinhood but unsure if we actually can from here.

Bonus points if the platform can also invest in the Nikkei.

Thanks!

Comments

  • +1

    Stake

    • Thanks will check that out.

      • +2

        Usually it's the other way around with the Robinhood app.

        • eToro are also shady, never trust Alec Baldwin

    • +3

      They don’t accept international investors, required SSN to verify the account. I tried to open one but unsuccessful.

      • Yeah need a US phone number as well though that's easier to get.

  • +2

    CMC has Japan stock.

  • Selfwealth?

    • Thanks will check that out.

  • +5

    Let me guess, buying GME?

    • +1

      While extremely entertaining to read about, I have others in mind.

    • CCIV 😁

  • Selfwealth does it, I set up an account the other week but haven't figured where to get U.S. prices yet. :)

    • Will try and do the same. Rates are competitive.

  • +3

    Charles Schwab, minimum 25K USD to open an account.

    Stake is the easiest way to buy the US stocks but not the cheapest. You have to pay fx rate for both deposit and withdraw.

  • I just use Nabtrade. Linked to my main bank accounts. Sure I pay $19.95 per trade, and i get screwed on exchange rates both when i buy and sell, but I feel my money is safer going through that platform. You can trade the majority of stocks, but you can't really day trade overseas stocks, as they hold the money for 3 business days when you sell so you can't immediately buy again with the same funds.

    • Yeah seems like if you're just buying in huge amounts and holding that $20 seems fine.

      • Yep but the double hit on exchange rate also hurts when you are talking large sums. 3% both ways starts hurting pretty quick and its something some people don't factor into buying a stock.

        For example, buy $10,000 AUD worth of US Stock. 3% fee comes to $300 in exchange rate you lose, plus the $20. Then lets say you immediately decide to sell the stock, you are selling $9680 AUD worth of Stock which is now in USD and when it goes back to your Nabtrade account you are going to pay another 3% and $20 trade so you've actually lost a further $310.

        You end up with $9370 after all that.

        If over that immediate buy and sell, it goes up 10% (9680*1.1 = 10648) and then you sell for $10648 you will pay $340 fees and you've really only profited $300.

        • That makes a lot of sense, yeah. Day trading and punting seems off the table, unless you're really going deep into meme stocks.

          Also asking about Nikkei because in the future that will be were I'm residing though will still be earning some AUD.

    • +1

      Terrible idea. If you're talking huge sums and buying long, you are far better off opening an account with a broker like Schwab (FINRA and FICA regulated, so fully insured) and transferring your funds in using an FX broker like Revolut or Transferwise (I've done the math - as soon as you reach $2110 AUD in outbound FX transfers, you save money using Revolut and paying for the $10.99 monthly fee over paying Transferwise's percentage fee), gaining access to $0 brokerage plus the minuscule regulatory fees (less than $1 on most trades) and no holding fees.

      It does mean unless you have applied for margin that you must have cash in the account to buy though.

      • Each to their own, I am not willing to put my money anywhere other than Australian institutions

      • Or, if you have an IB account you convert AUD to USD there, and then send to Schwab (or to Transferwise, and then on to Schwab if they block sending to Schwab direct). First transfer of the month is free, others are $1 for ACH transfers. Transferwise charge approx. $1 to send USD to Schwab. This suits me as I use both accounts.

        I also often transfer positions from IB to Schwab - at this time I can also transfer cash. IB doesn't charge an outgoing ACATS fee (Schwab does).

        • I maintain a domestic account with Citi US - if you can get into a branch there, they will open an account for you as an Australian resident in Australia. Then you can ACH in and out to or from your Schwab account at no cost. As long as your daily balance in the account is $1500, no fees apply.

  • Very streamlined to start with Stake. Some then transfer to Charles Schwab later.

    Check out the referral deals: https://www.ozbargain.com.au/deals/stake.com.au

    • How did you mean transfer? Transfer stocks from Stake to Schwab?

      • You can transfer stocks between brokers (ACATS transfer). Most brokers don't charge for incoming transfers, some charge for outgoing (I know Schwab does).

        A quick google but may be outdated re Stake:

        Share Transfers Out to another broker ACATS - $100 DTC - $15 per position This is the fee to transfer your shares from Stake to another broker.

        • Hi,

          Thanks for the information, could you please clarify $15 per position what does it mean? Is it per stock?

          And $100 USD for ACATS Transfers, what means I only have to pay $100 for all the stocks to a new broker?

  • +1

    Thanks guys, ended up on Selfwealth. Stake had some issues with their app recently, but will eventually open one at Schwab.

  • Merged from [Recommendation] What is the cheapest and best way to enter US Shares Trading

    I've been thinking of entering US Shares Market, but was wondering what is the best way to enter it?

    • CMC doesn’t charge fees. Takes a couple of days for funds to clear in the cash management account though.

    • +1

      I use Stake for my "lulz" trading while keeping my Commsec International for long term investments

    • -1

      Gotta πŸ’• new πŸ’΅.

    • Way too late for GME

    • +1

      NYSE are pretty much running things, I wouldn't try and compete.

    • Cheapest way is probably to not enter it at all at the moment.

      Gambling with both shares (tolerable) and currency (less tolerable) is really a recipe for disaster.
      Given that the Australian economy is largely ploughing on ahead out of covid while America goes through stagflation after being sent to the moon by their fed reserve, your gains in stocks may be wiped out by the faltering USD.

      Just something to have in the back of your mind.

      • The DEM will keep printing to keep the markets going. The biggest risk is to not play the game while there is still plenty of πŸ’΅ to go around.

    • Gamestop?

    • There are multiple platforms for US share trading but cheap and best are mutually exclusive.

    • tastyworks for the average person.

    • If any of these brokers go under, do we lose the US stocks?