online stock brokers - basic question

Soldato
Joined
18 Oct 2002
Posts
4,020
Location
Wellington, NZ
Hi Chaps,

Just a real basic question for you market traders out there;

How did you select your online broker? My situation is that I’m currently residing in NZ but I’m a UK citizen, the NZ brokers are awful (platforms and fees), I’ve been looking at the likes of E*Trade and TD which seem to be American based brokers. My understanding is that they don’t generally offer membership to non-US residents or they make it pretty difficult. Is this correct? If so is it worth going to those lengths to use the platform?

I’m currently using plus500 which is pretty basic but seems to do the job. The fees are dealt with by spread which isn’t too bad but the charting and analysis is a bit basic.

Is it ok for me to be using Plus500 in NZ from a NZ bank account (I’m thinking of tax)?
Is it worth the hassle of registering with a US platform?
Or should I stick it out with Plus500 and use web based charting / fundamentals?

Any help appreciated.

Cheers
 
Could you not use a spread betting account with IG index? Obviously you need to work out how much to bet for each stock so that you aren't over leveraging but it can be used in exactly the same way as a traditional stockbroker account, with the added bonus on no tax on any winnings as it's classed as gambling.

Only disadvantage is that you will end up paying the full spread on any buys and sells.
 
I’ve been looking at the likes of E*Trade and TD which seem to be American based brokers. My understanding is that they don’t generally offer membership to non-US residents or they make it pretty difficult. Is this correct?

no

what are you actually trying to trade? Using a US broker could be a reasonable idea for US equities

I’m currently using plus500 which is pretty basic but seems to do the job. The fees are dealt with by spread which isn’t too bad but the charting and analysis is a bit basic.

that is bad... its often deceptively expensive. While CFDs are good to avoid stamp duty it sounds like they're offering a similar solution to spread betting providers as in they provide you with their own two way quote.

Is it ok for me to be using Plus500 in NZ from a NZ bank account (I’m thinking of tax)?

No idea re: tax for someone living in NZ

Is it worth the hassle of registering with a US platform?
Or should I stick it out with Plus500 and use web based charting / fundamentals?

You could use other data sources yes... but whats the execution like? Is it just the data, charting that is causing you hassle?
 
I've not considered spread betting, i'll do some research on it later.

Dowie - I will be looking to trade shares, I would like access to international martkets if possible as well.

Plus500 seems to offer pip based spreads as their commision rather than flat fees like some of the other big brokers. I'm quite used to their platform now though but I want to set up properly on a well known / respected broker now if P500 isn't recommended.

I was looking at Bloombergs / NASDAQ's online charting and data and it looked very good, it would be great if I had a platform that embedded that. My strategy will be relying heavily on technical analysis so I need good intuitive charting and data tools.

Cheers
 
You won't be able to get a brokerage account with etrade, unfortunately. They're only for US residents. I hold some company stock with etrade and I've tried to get a brokerage account before.
 
Back
Top Bottom