Trading US markets outside the US

K

Kicking

Anyone trading full time outside the US? I believe daytrading US stocks or futures markets for a living is a very difficult endeavour for an individual based outside the US, mainly because of the cost/access of information . I know daytrading has been popular in Germany though. For those of you who trade actively in Europe, Asia, Canada, or elsewhere what is your experience with:

1) getting a fast&reliable connection to your broker. DSL and cable are more expensive in Europe for ex. and there is a limit on the Mo you can download. I am pretty sure reliability/availability is a big issue there too since I can imagine the Internet infrastructure is less developped than in the US, and it is my understanding that Internet traffic to the US relies on one single backbone. How fast&accurate are the quotes you get through providers like Quote.com, eSignal?

2) access to information: getting CNBC US programs, Bloomberg US tv 24/7, or CNNFn. Subscription to IBD for ex.

3) communications with an US EDAT broker, how do you manage: deposits/withdrawals, account statements delivery, getting someone on the phone (toll free?) to get you out of a trade etc.

4)Last but not least: is it possible to make a living as a full time individual (retail) trader in Europe for instance when the government will kill you before you even made any money with taxes and social security contributions of all sorts. I don't think there are many private traders in Europe so what status if any do you have regarding taxes, health insurance? Are you considered as self employed?



 
I don't see how it makes much difference where you live. I trade futures full time from Australia. All I need is a reliable 56k internet connection. You can get any data/info/news you want off the internet, so location is not a disadvantage at all.

Taxation is not really an issue either. If you gross more from trading than you would in a 'normal' job, you are better off.
 
Kicking,

I have been trading full-time the US markets for almost one year now. I paid the customary (and expensive!) tuition fee to the market and now I am starting to become marginally profitable. I haven't found any country-dependant problem and, in particular:

1) I use ADSL, which gives me fast and generally reliable connectivity. I spend about 40/50$ a month for it, and, as a backup solution, I can choose among several free dial up services which, hard to believe but true, work fairly well when needed. I will move to cable as soon as it is available (probably in September) and I will spend actually a few dollars less than the current ADSL fee. I know from speed tests made in a live trading room on the T&S of big-volume naz stocks that I have no relevant delays in comparison to US-based traders (using q-charts).

2) I could get CNBC on satellite, but I guess that, if anything, it would be detrimental to my trading.

3) I trade with IB, without any connectivity problem. I move money via wires and I never had occasion to use the phone on an emergency situation, but I got a normal connection when I called IB on my mobile to ask for info. I also have an account with Datek with enough money in it to offset a position in case of IB-specific problems.

4) I am US tax exempt and CG tax in Italy is 12.5%. Bereaucracy here is a nightmare, and most traders using US brokerages just forget telling the administration what they do, getting away with it most/all of the times. As far as health insurance is concerned, our country has countless defects and problems but if you are ill/injured you get cured for free, no questions asked.

The only barrier I can see is language, but having lived for a few years in the UK that's not a problem for me.

Hope this helps

Ciao

Guido
 
Kicking,

As far i know, most data provider charge one flat rate for stocks information deseminated thru' the internet. Commission for online brokers are the same whereever you trade from. Your only concern should only be getting a cheap and reliable internet connection in your home country.

If you needed to daytrade, you should always try to use a cable modem, ISDN or better. As for 56k modem, i will try to avoid it as the latency is a lot slower that cable. Since getting the right fill is very important, you should alway go for the best internet connection whenever affordable.

I have been trading outside US for a while and it wasn't long for me to realise "real-time quote" wasn't that real-time afterall. From my home, i realised that my Esignal quote is consistently 1-2 seconds behind the atomic clock. I think this is due to the distance between Singapore and US. I don't know whether there will be a lag at your home but for that reason, you should also try to accomodate your trading strategies to these shortcoming.

Hope this will help...
 
Hi, i live in Austria and trading for a living.

I use Interactive and E-signal to daytrade - interactive also for swing.

I use ADSL for the dataprovider and one separate computer for the broker connectet with ISDN.

No Problem here. I do not trade the fast times like the first 10 minutes or the news.

Taxe is based on your average income - they are high compare to guido (italy) and the US but if you have a good tax advicor you can find some legal ways....

I watch CNBC Squawk Box US (maria, david, joe) from 8 to 9.30 Eastern Time but it doesn't determine my trading.

the internet makes it possible.
 
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