What platform do you use for trading US market stocks and options and why?

[dreamybear]

Sharing my experience ....

I am using UOBKH and OCBC Securities to trade US and HK stocks(I do not know how to trade options), reason for using these is because I did not know anything about trading foreign shares previously(self-taught) so I thought it would be easier for me to try with the brokers whom I am already using to trade SGX shares. Furthermore, I think our local banks are relatively super stable so they are safe enough as custodians of my foreign shares. However, do note that their monthly statements leave much to be desired.

In terms of why trade foreign shares, I personally like big US listed companies, e.g. JPM, BP, Shell, Santander, some of which I picked up during the GFC(unfortunately not at the lowest price), and also big China/HK banks like HSBC, BOC, ICBC. Can't buy shares of these types of companies in SGX, but I think one can also trade ADRs of certain foreign companies using SGX(never tried though).

I think it does not hurt to look global so that one can try to find value in whichever region in the world during times of crisis.

However, for me, the annoying parts for foreign shares are the withholding tax, custody fees(charged per counter per month), exchange rate and not being able to lend out shares(unlike SGX).

Hope it helps.

[TTTI]

Sharing my experience ....

I am using UOBKH and OCBC Securities to trade US and HK stocks(I do not know how to trade options), reason for using these is because I did not know anything about trading foreign shares previously(self-taught) so I thought it would be easier for me to try with the brokers whom I am already using to trade SGX shares. Furthermore, I think our local banks are relatively super stable so they are safe enough as custodians of my foreign shares. However, do note that their monthly statements leave much to be desired.

In terms of why trade foreign shares, I personally like big US listed companies, e.g. JPM, BP, Shell, Santander, some of which I picked up during the GFC(unfortunately not at the lowest price), and also big China/HK banks like HSBC, BOC, ICBC. Can't buy shares of these types of companies in SGX, but I think one can also trade ADRs of certain foreign companies using SGX(never tried though).

I think it does not hurt to look global so that one can try to find value in whichever region in the world during times of crisis.  

However, for me, the annoying parts for foreign shares are the withholding tax, custody fees(charged per counter per month), exchange rate and not being able to lend out shares(unlike SGX).

Hope it helps.

I think you should switch brokers. The brokerage charges for those local brokerages that you mentioned, are a lot a lot higher.
Also, my foreign shares are loaned out all the time to shortists (for which I get paid fees).

Finally, for those who say "why look at US cos it is so expensive blah blah..."
That's really missing the whole point of investing.

Using such an argument, for those who invest SOLELY in SGX companies, I can also say then why look at banks and healthcare companies? 
Let's all just buy the construction companies cos they are trading (As a group), at the lowest earnings multiples.

In short, it's probably not very useful to look at things with a broad sweeping statement.
Investing is a lot more complex than that.

[dreamybear]

I think you should switch brokers. The brokerage charges for those local brokerages that you mentioned, are a lot a lot higher.
Also, my foreign shares are loaned out all the time to shortists (for which I get paid fees).

Finally, for those who say "why look at US cos it is so expensive blah blah..."
That's really missing the whole point of investing.

Using such an argument, for those who invest SOLELY in SGX companies, I can also say then why look at banks and healthcare companies? 
Let's all just buy the construction companies cos they are trading (As a group), at the lowest earnings multiples.

In short, it's probably not very useful to look at things with a broad sweeping statement.
Investing is a lot more complex than that.

Thanks TTTI for your advice. Yes, I should seriously consider switching to foreign brokers.

BTW, some other info for whoever who may be interested - to transfer foreign shares from one local to another local brokerage, both the "source" and "destination" broker may charge transfer fees.

[Wildreamz]

Why are you wanting to invest in US market ?    the US share prices are overvalued from Trump effect compared with price of shares on the  Asian Markets .

The shares listed in Singapore Stock Exchange  are rated  at lower PE ratios.

You are looking at it only from a traditional stock investment point of view, there are different strategies for investing in different market condition. For example, if you evaluate that the stocks are overvalued, then you can short the market or sell put options etc. I have been investing in SG market for close to 5 years already. Just looking at expanding to other markets, and i just think that the US market being one of the most versatile market to trade and invest in, would be a good market to look at.


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Selling put options is actually a long position. Not shorting.

Xiaosaint is not wrong, he said if one thinks stocks are overvalued one could "short the market" or "sell put options". Selling put options is a conservative strategy to go long on the underlying without directly investing in it, if you think that the underlying is overvalued for now.

[zz...]

someone told me that if using Interactive Brokers, can open a citibank usd account to save fees for fund transfer as Interactive Brokers also use citibank accounts, not sure if the info is correct.

[Wildreamz]

I transferred from SCB. And had to pay a flat rate of about USD $13 (https://av.sc.com/sg/content/docs/sg-fees-schedule.pdf) per counter to transfer to IB.

Beyond that, transferring funds into IB (SGD) is free. Transferring money (SGD) out of IB is free once per month, then you need to pay a flat rate. For more questions, post it in HWZ Interactive Brokers forum, the people there are very helpful: http://forums.hardwarezone.com.sg/money-...53471.html

[BlackCat]

For the original question:

I use Schwab for US stocks, ADRs and options.  Their interface is easy to use, and their service is excellent.  If you message them they will give you a meaningful reply, or you can speak to a person for urgent problems.  I have not shorted stocks on this platform, but they said I can do so.  I did not know they now have a Singapore office until I read this thread.  When I signed up several years ago, I had to mail paperwork to them (eg: *original* paper bank statements & bills showing me and my wife's address).

I use Interactive Brokers for other countries' stocks and options.  In general, the platform is confusing - I don't trade much, so every time I do it takes me about 5 mins to make a trade.  I found support to be so so - did not get a meaningful reply when I messaged them.  And theres the small monthly fee if you don't trade much.  Annoying, but I use them because of the wide range of markets they access.  I have shorted stocks on this platform.  Suggest you use them if you need access to global markets or if you trade a lot.  When I signed up last year, I don't remember them asking for any paperwork, just scan IC.

For taxes: I think that an estate tax is levied on your US brokerage account (...on the balance, not just the profits) if something happens to you, so if you have a partner you should open a joint account to avoid this.

[Xiaosaint]

Why are you wanting to invest in US market ?    the US share prices are overvalued from Trump effect compared with price of shares on the  Asian Markets .

The shares listed in Singapore Stock Exchange  are rated  at lower PE ratios.

You are looking at it only from a traditional stock investment point of view, there are different strategies for investing in different market condition. For example, if you evaluate that the stocks are overvalued, then you can short the market or sell put options etc. I have been investing in SG market for close to 5 years already. Just looking at expanding to other markets, and i just think that the US market being one of the most versatile market to trade and invest in, would be a good market to look at.


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Selling put options is actually a long position. Not shorting.

Hahaha ya I realised I’ve made an error there, thanks for pointing it out.


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[TTTI]

Why are you wanting to invest in US market ?    the US share prices are overvalued from Trump effect compared with price of shares on the  Asian Markets .

The shares listed in Singapore Stock Exchange  are rated  at lower PE ratios.

You are looking at it only from a traditional stock investment point of view, there are different strategies for investing in different market condition. For example, if you evaluate that the stocks are overvalued, then you can short the market or sell put options etc. I have been investing in SG market for close to 5 years already. Just looking at expanding to other markets, and i just think that the US market being one of the most versatile market to trade and invest in, would be a good market to look at.


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Selling put options is actually a long position. Not shorting.

Hahaha ya I realised I’ve made an error there, thanks for pointing it out.


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yup sure, no problem.