Getting a Good Exchange Rate on a US Share Trading Account

BluebirdV on 22/07/2023 - 07:15

I am interested in opening up a share trading account to buy and hold US stocks.

On Selfwealth share trading platform it says:

USD cash account

When you apply for US trading, we set you up with a USD cash account. This allows you to easily transfer money from your Selfwealth AUD cash account to your USD cash account.

I was wondering if they offer a good exchange rate? Or can I get a better exchange rate using Ozforex to transfer the money in? Or is there another broker with CHESS sponsorship that offers a good exchange rate?

Financial Exchange Rate

Comments

  • bohn on 22/07/2023 - 08:24
    +2

    Use Interactivebrokers.com.au
    Crappy looking platform but powerful once you know how to use it. Convert currency at basically spot rate.

  • zingerburg on 22/07/2023 - 14:58

    Yep Interactive brokers is the best for US stocks, have a look at this link that compares trading platforms for ASX and US trading.

    https://passiveinvestingaustralia.com/online-trading-platfor…

  • HeavenlyHammocks on 22/07/2023 - 15:30

    Selfwealth offer a better FOREX rate than Stake.

    I have not heard of it being possible to use OFX to transfer into a Selfwealth USD cash account.

    • Daniel Plainview on 31/07/2023 - 08:35

      I love Stake but their FX rates are abysmal - like WTF levels of rorting folks you'd expect back in the 1990's when people couldn't properly compare service providers.

      Hard to believe they are serious about allowing direct US index trading while charging 70 basis points each way for conversions.

      IB are the way to go.

  • andrek on 23/07/2023 - 03:28

    A few weeks ago I was looking for a share trading platform to use, checked Stake, Selfwealth, Commsec, Tiger. None of them allow direct transfer of USD in or out. Only through their own FX facility and they take a cut on that.
    Here's how Stake does it, but the rest are similar
    https://hellostake.com/au/blog/stake-academy/stake-academy-f…

    Here's the reply from Stake support:

    Unfortunately, due to our AML and compliance regulations with our US broker, we are unable to facilitate the direct withdrawal of USD. All withdrawals from your Stake account will have to go to your Australian-based bank account which operates in AUD.

    From Selfwealth:

    With USD, you would not be able to transfer it out to another US account. The only way to withdraw it is to first convert it back to AUD.

    • Daniel Plainview on 31/07/2023 - 08:37

      Yeah this was a known workaround that folks used for a while and then pretty shamelessly Stake closed this - which is pretty crappy of them as it doesn't cost them anything extra to transfer to a US account or any account once they can confirm they have the accountholders instruction to do so.

      So the short translation of what they said is,"No, as we want our very generous 70bpts each way and won't let you avoid it!"

  • badonde on 31/10/2023 - 17:18

    How do you guys manage your EOFY returns with Interactive brokers?
    With IG I have to download history and try to work out what my gains/losses are - it's so difficult.

    I am looking for a platform that manages all of this and I can just export at the end of the year.

    • Daniel Plainview on 31/10/2023 - 17:21
      +1

      You could subscribe to a 3rd party portfolio manager like Navexa or Sharesight. Or just print all your stuff out and take to your accountant.

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