Im thinking about switching my broker cause they dont allow me to trade on american stocks nor do they allow me to short sell. Im currently living in korea and hopefully i can find a broker that wont give me a lot of hassle on trading and on opening an account thanks! Im an american citizen
hhiusa
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If you are an American citizen, I am assuming you have a bank account in the US. If you are an American, you can open a brokerage account with Interactive Brokers from any white-listed country in the world. While you can use a foreign bank account to link to your brokerage account, I would find it more prudent using a US bank account. If you are living in South Korea, it would require having a multi-currency in the South Korean Won and the American dollar to avoid fx translational fees and bank kiosk fees. If you were to deposit from an account denominated in won into the IB account, you would have to translate the money into the USD at small charge. They give you access to Interbank rates for forex. Some brokers, like FxPro advertised here are one of the most expensive in regards to spread rates. They charge anywhere from 0.00002 * trade value to 0.000008 * trade value depending upon how much you trade. Stocks are anywhere from $0.005/share to $0.0005/share depending upon how much you trade.
IB also allows for multi-currency accounts, so you can keep as many concurrent currencies as you want.
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hhiusa
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$4.95 per trade up to 1000 shares, $0.00495 after is not cheap. That is $9.90 per round trip trade. If you trading penny stocks, then chances are that you will be purchasing more than a thousand shares.
Example
CYCC:US $0.67/share. 1000 * $0.67/share = $670. $9.90/$670 = 1.47%.
This means that you have to make 1.47% to break even before you make any money. Even if the transaction was worth $10,000, it would take 0.1% to break even. Those percentage points add up quickly, and I would prefer them to go towards my balance and not to the broker.
@cashclay, I would be sure to look at the charges very closely.
You could go to this site: http://www.stockbroker.co.kr/ and will get advice.
It is a korean english site when tons of brokers are available to help you out.
It is a korean english site when tons of brokers are available to help you out.
Write to the customer support and tell them you are going to trade penny stocks, they will make it 4.95 up to 10 000 shares. Let me know if u find something cheaper
hhiusa
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Write to the customer support and tell them you are going to trade penny stocks, they will make it 4.95 up to 10 000 shares. Let me know if u find something cheaper
That is still $4.95/trade, which is expensive. If you were trading 10,000 shares at a time in the previous example, that would $6,700/trade. Additionally, it would still cost you 0.147%/round trip trade. They do not offer add liquidity rebates or decreases in commission when you trade more.
