How to invest in US stock exchnages?

Okty

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I remember seeing a thread where it was mentioned how you can transfer ZAR to overseas trading platforms, to invest in US stock exchanges, but can't seem to find it now.

Can anybody shed some light in this please?

Thanks
 

backstreetboy

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I remember seeing a thread where it was mentioned how you can transfer ZAR to overseas trading platforms, to invest in US stock exchanges, but can't seem to find it now.

Can anybody shed some light in this please?

Thanks

ig.com
Degiro
Interactive brokers
gt247.com
 

newby_investor

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Hello all, long-time lurker here but I have a few questions.

I have been using Easy Equities' TFSA since it was a new thing, I'm using it to supplement retirement savings.

I want to put some money directly offshore, probably in USD since that seems to be the most common. I'm more keen on funds domiciled in Ireland though, for estate tax purposes, but that's secondary.

I looked at the websites mentioned in this thread and they seem to offer pretty sophisticated trading platforms - a lot of which I don't understand. I'm pretty OK with the concept of an ETF, and I stick to three or four broad index funds and don't intend to sell for the next 20-30 years. In ZAR I invest on a debit order, for USDs I'd probably accumulate for a few months, then do say R25k at a time to get a better rate with the SWIFT fees.

Is there a simple platform that would allow me to do what I want to do? I'm not really interested in derivatives, shorts, futures, whatever all else there is. Just buying and holding a couple of broad index funds for a long time, and minimising the costs.
 

The_Ogre

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Well, with Easy Equities you're able to buy US instruments as well...
 

newby_investor

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Yes, I have seen that. They don't have the exact funds that I'd like, unfortunately, and while they do have similar ones, they are US-domiciled for the most part.

There have also been some concerns on another thread about withdrawals from the EE USD account, so while I inquire more about that it seemed prudent to at least investigate other options.
 

rietrot

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You can use one of the more complicated platforms but only buy the ETFs you like ignore all the other stuff.
 

newby_investor

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So I started a demo account on IG.com, and "bought" some iShares MSCI ACWI UCITS ETF. I think. The demo account seems to be in GBP on the London stock exchange.

There's a little window showing that I now have a "position" on this security. If we were to pretend that this was real money I was using, would I actually be the owner of these securities, or would I just have entered into a long-position CFD?

The wiki link about CFDs explains (if I understand correctly) that this sort of thing makes it possible for retail investors to access overseas equities at lower costs, without hurdles of establishing relationships with stockbrokers in each country etc.

Am I understanding correctly here? Is this sort of thing appropriate to what I want to do? Are there any hidden caveats as compared to simply holding actual ETF securities as I'm used to with my EasyEquities account? Excuse the ignorance, I hope someone with more experience can shed some light for me.
 
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bchip

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remember seeing a thread where it was mentioned how you can transfer ZAR to overseas trading platforms, to invest in US stock exchanges, but can't seem to find it now.

Not sure what you are doing with IG Markets.
CFD's are derivatives, which is for more advanced users. (e.g it uses gearing which you pay around 10% p/ann for)
IG's model is also a type of bucket shop, so you trade against them.
I wouldnt follow that route if I was you - wouldnt advise anybody on them.

If you want to invest in overseas markets you can either do it with a couple of local companies,
most of them ask for R 100,000 deposit (like saxo).
Alternatively just go for the reputable US brokers like TD Ameritrade or Interactive Brokers.
 

newby_investor

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If you want to invest in overseas markets you can either do it with a couple of local companies,
most of them ask for R 100,000 deposit (like saxo).
Alternatively just go for the reputable US brokers like TD Ameritrade or Interactive Brokers.

Yes, this is exactly what I needed! Thanks!

I figured fairly quickly that IG wasn't what I needed. But I didn't quite know how to get to what I needed. Saxo looks as though it's perfect.
 

bchip

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Yes, this is exactly what I needed! Thanks!

I figured fairly quickly that IG wasn't what I needed. But I didn't quite know how to get to what I needed. Saxo looks as though it's perfect.

Please dont go Saxo....worst service EVER.
Their fees are also incredibly high at $20 a transactions so a buy & sell is $40.
Compare this to TD Ameritrade charging $5 per transaction.
Saxo now also charges monthly fees from June above that.

Rather investigate TD Ameritrade or Interactive Brokers
 

Zukat

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Please dont go Saxo....worst service EVER.
Their fees are also incredibly high at $20 a transactions so a buy & sell is $40.
Compare this to TD Ameritrade charging $5 per transaction.
Saxo now also charges monthly fees from June above that.

Rather investigate TD Ameritrade or Interactive Brokers

Don't you need to have an overseas account to use TD and Interactive? If so, how would you suggest going about it.
 

JayM

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IB has now officially removed their US$10K minimum requirement, which they haven't really been enforcing anyway. You can fund your account directly (i.e. no international bank account required) by using E4F or similar, but you will need an international bank account if you need to transfer funds out of your brokerage account. You still need US$100K NAV to get the monthly charge ($10) waived though.
 

bchip

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Don't you need to have an overseas account to use TD and Interactive? If so, how would you suggest going about it.
It took a 1 snail mail to open an account where I had to send my FICA documents.
Other than that the process was really easy, couple of clicks on the website.
I didnt need any overseas bank accounts, just gave the details of my local bank account.

Easy Equities
Easy Equities doesnt have options of 11,000 international shares, futures and options,
with free access to incredible research.
 

bchip

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Easy Equities only works for people who want to invest small amounts (<R1000)
If you only invest R200 or R50 in a stock then its probably ok
(Thats if your ignoring the fact that its run by people who were caught stealing from their
clients and never reprimanded)
It also has very limited options in what you can pick, so its really for people
who simply buy on news articles on the more famous brands.
You also need to overlook the fact that you cant actually buy fractional ownership on the JSE,
so it asks ...do you really own those shares? if Purple capital goes insolvent what really happens
with your holdings?

If you just wanted cheap (and $5 a trade is too expense), then one should rather
investigate Robin Hood...seems to be quite popular.
 

rialto

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I have opened account with Interactive Brokers with 1000 Euro(!- thought I should have some direct exposure to Euro, then changed my mind and decided US stocks and funds will be better. I have done an internal transfer to USD, but from there it is nightmare! There is now a dollar account with the correct usd less forex exchange fees, but wjen I want to trade it still says 'fund your account" Have contacted support, they told me to make a transfer, as I did, now what? Haven't got a landline, so imagine what a cellphone call to the US will cost! Please help if anyone can ...
 
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