Best for small cap US Stocks

[olikea]

I have a particular interest in trading small cap US stocks, particularly $100-$5000m. Unfortunately I am frequently dissapointed with the selection available on SB companies, with many only offering S&P500 and NASDAQ100 shares.

So far I have been using IG Index, I don't attempt to trade anything less than $500m, but even then I am frequently hit with a "not available" message. This can be quite frustrating.

I have found that while a lot of the SBs cater quite well for *UK* small caps, their coverage of *US* small caps is quite poor. I have never understood why poeple living in the UK think they must only trade UK stocks!

Finding a provider is also difficult because the SBs aren't very explicit about what they offer. IG Index has a full list of all shares available, which is useful, but others say nothing except for "a selection of US stocks", or something to that effect.

Contacting them directly only yields a "tell us what you want to trade and we will see..." which isn't very useful.

So I was wondering if anyone has any pointers:

-What are the requirements for US stocks to be available? It would be great to know the explicit liquidity requirements and market capitalisation requirements in advance.
-Does anyone have any recommendations for good US small cap SBs?

 

[the blades]

I have a particular interest in trading small cap US stocks, particularly $100-$5000m. Unfortunately I am frequently dissapointed with the selection available on SB companies, with many only offering S&P500 and NASDAQ100 shares.

So far I have been using IG Index, I don't attempt to trade anything less than $500m, but even then I am frequently hit with a "not available" message. This can be quite frustrating.

I have found that while a lot of the SBs cater quite well for *UK* small caps, their coverage of *US* small caps is quite poor. I have never understood why poeple living in the UK think they must only trade UK stocks!

Finding a provider is also difficult because the SBs aren't very explicit about what they offer. IG Index has a full list of all shares available, which is useful, but others say nothing except for "a selection of US stocks", or something to that effect.

Contacting them directly only yields a "tell us what you want to trade and we will see..." which isn't very useful.

So I was wondering if anyone has any pointers:

-What are the requirements for US stocks to be available? It would be great to know the explicit liquidity requirements and market capitalisation requirements in advance.
-Does anyone have any recommendations for good US small cap SBs?

Olikea,

I'm afraid that IG is (I think) your best bet. If they don' t do it then you'll be struggling elsewhere. I was looking at smaller cap US stocks and ended up with an IB account. Less tax efficient but excellent cost structure, and with the volatility of US stock, fairly easy for me to get a better price with the use of limit orders.

Good luck,
UTB

PS - if you find better than IG, let me know would you?

 

[olikea]

Olikea,

I'm afraid that IG is (I think) your best bet. If they don' t do it then you'll be struggling elsewhere. I was looking at smaller cap US stocks and ended up with an IB account. Less tax efficient but excellent cost structure, and with the volatility of US stock, fairly easy for me to get a better price with the use of limit orders.

Good luck,
UTB

PS - if you find better than IG, let me know would you?

I already have an IB account that I use to trade my "main" portfolio, but the extra leverage available with SB gives some interesting extra "spice" on the side, and I like guarenteed stop orders

Though recently IB have offered a new type of margin account, "portfolio margin" that theoretically allows a greater amount of leverage than a conventional 50% margin requirements.

Though I don't think its a good idea to leverage that account to the hilt, especially if we have a repeat of 1987!

Will keep my eyes open, I felt that IG were probably offering the largest selection, but it seems most people are far more interested in trading indicies than shares, which is a shame, because I find indicies are pretty choppy!