Um, yeah, this is going to be real expensive is how Bill Lumbergh might answer the question.A reader left a comment asking about very expensive commission for foreign stock trades.
The reader notes paying 5% commissions for shares traded locally on foreign markets through Fidelity.
Schwab charges a lot too. I can tell you as of about a year ago Ameritrade charged me the same $10 for a foreign stock but I had to tell them how to place the trade.
Where you really will feel some pain, commission-wise, is if the stock trades below US$1.
I'm not sure why it is so unfriendly but it is and I have no idea if it will get better or not. I get a little bit of a break being an RIA but I have to say I would not pay such large commissions. I would rather tell Ameritrade how to place the order.
8 comments:
Foriegn markets are one area where ETFs and mutual funds are very useful for the little guy.
TD Ameritrade only trades ADRs of foreign stocks, but they have an extensive selection, and it's $9.99 commission for any number of shares, even under $1.00. Online transactions are easy, too.
You may give up a penny or two in the dollar conversion, but that's better than 5 percent.
i think the trades should be FREE. Make it so!
Roger, thanks for the post.
I was looking at a few stocks trading on the Hungarian Stock Exchange ( http://www.bse.hu/onlinesz/index_e.html ) a few months ago noticed several stocks that are undervalued compared to US peers. However, I couldn't find an easy way to buy them through my broker so gave up. Now that you brought up the subject, can you describe how would I go about buying stocks on BUX?
Thanks.
I am not sure what BUX components are accessible through Fido or Schwab. If I remember right OTP Bank is a large component and so it may trade here as an ordinary and maybe the big oil company too? To be clear I have not studied these stocks.
i didn't remember a young Herb Greenberg was in Wall Street
Interactivebrokers.com is very handy in buying foreign stocks at a reasonable price.
Interactive Brokers has a buy list for each exchange. If your stock is not on it, fuggedaboudit.
Haven't tried them yet, but NobleTrading for European stocks, and Boom.com.hk for Asian-Pacific stocks both look worth investigating.
Post a Comment