Access to more exchanges

21Capablanca21 · Dec 1, 2012

Id like to buy stocks in China, India, Thailand, Korea and Indonesia.

Which is the best and cheapest international broker that let me trade on these exchanges?

Or on some of them.

(With China i dont mean the Hong Kong exchange)

garachen · Dec 2, 2012

Those countries are generally closed to foreign investment. US citizens cannot own their stocks.

There are expensive ways around this for institutions.

dealmaker · Dec 3, 2012

Quote from 21Capablanca21:

Id like to buy stocks in China, India, Thailand, Korea and Indonesia.

Which is the best and cheapest international broker that let me trade on these exchanges?

Or on some of them.

(With China i dont mean the Hong Kong exchange)

This was sent to my inbox a while back pretaining to trading Korean market( see below). If huge hedge funds can trade China through Hong Kong and its good enough for them why is it not for you?

Registered: Apr 2011
Posts: 3
Trading Korean Markets thru CQG
Hi, I hope you don't mind me sening you this message. I am working at F/O desk of HanMag Securities, one of the clearing members of Korea Exchange(KRX).

HanMag recently set up CQG for foreign cleints looking for access to Korean markts at very competitive rates. Not only CQG but do we provide other solutions such as other ISVs, HanMag's inhouse trading platform and DMA..) for clients looking for competive access to Korean Markets. If you want to know more about HanMag and our services, please let me know. Many thanks.

HT

comintel · Dec 3, 2012

Quote from 21Capablanca21:

Id like to buy stocks in China, India, Thailand, Korea and Indonesia.

Which is the best and cheapest international broker that let me trade on these exchanges?

Or on some of them.

(With China i dont mean the Hong Kong exchange)

International brokers will generally not accept accounts from U.S. residents (other than accredited investors) because U.S. regulators prosecute them if they do.

There are a few exceptions.

Much/most speculative trading on foreign exchanges is actually done by CFD's rather than shares to avoid "stamp taxes" etc. Again, brokers such as Interactive Brokers offer a wide variety of world-wide CFD's to foreign investors, but are unable to offer them to U.S. residents because they are barred from doing so by U.S. regulators.

21Capablanca21 · Dec 3, 2012

Quote from garachen:

Those countries are generally closed to foreign investment. US citizens cannot own their stocks.

Ok, and its the same for europeans then i guess?
I am from sweden.

I thought it was possible to buy stocks in those countries through a broker like Europacific and therefore it should exist other cheaper alternatives.

21Capablanca21 · Dec 3, 2012

Quote from dealmaker:

If huge hedge funds can trade China through Hong Kong and its good enough for them why is it not for you?

I feel like i have too much exposure to the USD.

If i'm not mistaken HKD is pegged to the USD and instead of buying chinese stocks on the Hong Kong exchange + shorting USD/RMB, which comes with a cost, i thought it would be cheaper to buy the stocks directly on the Shanghai exchange.

21Capablanca21 · Dec 3, 2012

Quote from comintel:
Much/most speculative trading on foreign exchanges is actually done by CFD's rather than shares to avoid "stamp taxes" etc. Again, brokers such as Interactive Brokers offer a wide variety of world-wide CFD's to foreign investors, but are unable to offer them to U.S. residents because they are barred from doing so by U.S. regulators. [/B]

I am a long term value investor.

I dont know much about CFD's but i assume they are more expensive to own over long time than stocks and that they are priced in USD and that they dont pay dividends?

luisHK · Dec 3, 2012

Quote from 21Capablanca21:

I am a long term value investor.

I dont know much about CFD's but i assume they are more expensive to own over long time than stocks and that they are priced in USD and that they dont pay dividends?

In my little experience with CFDs, the main proble if you are holding long term is you have to pay interest on the stocks you are long, like if you borrowed the money, and even though you might have available cash on your account.

Besides, they are priced in the local currency rather than USD and are supposed to work the same as the underlying stock concerning dividends and other corporate actions. Also IB margin rates are quite reasonnable compared to those from other retail brokers.

As of access to asian countries, if IB is not enough for you, you might check HK and singapore based brokers, but I couldn't recommend any.

Saxo is quite expensive but targets retail customers and offers more exchanges than IB.

dealmaker · Dec 3, 2012

Quote from comintel:

International brokers will generally not accept accounts from U.S. residents (other than accredited investors) because U.S. regulators prosecute them if they do.

There are a few exceptions.

Much/most speculative trading on foreign exchanges is actually done by CFD's rather than shares to avoid "stamp taxes" etc. Again, brokers such as Interactive Brokers offer a wide variety of world-wide CFD's to foreign investors, but are unable to offer them to U.S. residents because they are barred from doing so by U.S. regulators.

Correct me if I am wrong but isn't Fidelity now offering European exchanges directly?

dealmaker · Dec 3, 2012

Quote from 21Capablanca21:

I feel like i have too much exposure to the USD.

If i'm not mistaken HKD is pegged to the USD and instead of buying chinese stocks on the Hong Kong exchange + shorting USD/RMB, which comes with a cost, i thought it would be cheaper to buy the stocks directly on the Shanghai exchange.

I don't know about India but in China you still can't short stocks thus, its kind of hard to trade it even if you had access to them...