Online Broker and Foreign Market Questions

[Pigeoninator]

Hey,

I have some questions that some of you might be able to answer.

I'm from the UK and I was wondering if trading on the U.S market was worth it. One bonus I've seen is a lot more of online communities which is very helpful, also I see a lot more business' which adds a lot more opportunities.

Another question is, for trading on the U.S market I've been recommended Zecco, which looks pretty nice (£2 a trade for me). Does anyone have any other recommendations?

Thanks!

[netwrangler]

Originally Posted by Pigeoninator

Hey,

I have some questions that some of you might be able to answer.

I'm from the UK and I was wondering if trading on the U.S market was worth it. One bonus I've seen is a lot more of online communities which is very helpful, also I see a lot more business' which adds a lot more opportunities.

Another question is, for trading on the U.S market I've been recommended Zecco, which looks pretty nice (£2 a trade for me). Does anyone have any other recommendations?

Thanks!

What great questions!

As to the first one: I've wondered the same thing in reverse. That is, should I open an account that allows me to trade on European exchanges.

Perhaps a discussion of the second question will speak to what exchanges are available through what brokers.

Looking forward to this thread.

[Pigeoninator]

Well, for me trading on the U.S market is quite good because the Sterling doubles on the Dollar(not that it matters that much because I'm not planning on moving out there and using Dollars :P). But Like I said there's just so many more communities dicusssing the U.S market which helps a new comer to the market. Also the commission is low!

[CarlJ]

I can't offer a lot of insight about your questions as I am just starting out.
I have been using LowTrades.com. So far I have no complaints about them. I've completed one trade so far and it went smooth. $4.95 a trade.
I found about zecco after I had already opened a LT account, the fact that zecco offers 10 free trades a month if you have the minimum balance is nice. I might switch when I get my funds traded up to the necessary level to qualify for free trades.

[Luc1Grunt]

Interactive Brokers is open to you and would allow options, futures, and FOREX along with stocks.

[aiki14]

Be careful of the tax ramifications. You will have to file in the states and your normal filing. For U.S. citizens with overseas income one must file in the country where the income is earned, pay the appropriate tax, file credit for the tax paid, and if it exceeds the US tax too bad, and if not one must pay the difference.

[Pigeoninator]

For non U.S citizens, does the W8 Ben form that you send to your U.S Broker cover the tax issues?

[aiki14]

Originally Posted by Pigeoninator

For non U.S citizens, does the W8 Ben form that you send to your U.S Broker cover the tax issues?

I do not believe so, but I am a US citizen who is sort of looking at the other side, so you may want to ask someone from your side. Good luck, and if you get a definitive answer please post it, I'd be interested to know what the deal is.

[netwrangler]

Originally Posted by CarlJ

I can't offer a lot of insight about your questions as I am just starting out.
I have been using LowTrades.com. So far I have no complaints about them. I've completed one trade so far and it went smooth. $4.95 a trade.
I found about zecco after I had already opened a LT account, the fact that zecco offers 10 free trades a month if you have the minimum balance is nice. I might switch when I get my funds traded up to the necessary level to qualify for free trades.

FWIW:
Barron's rated zecco last a field of 15 "web-based" brokers in an "Annual Review" article last March. TD Ameritrade, optionsXpress, Fidelity Investments, Muriel Siebert, and TradeKing were the top five with 4 stars.

In the "software based" brokers category, thinkorswim, Interactive Brokers, and MB Trading took top ratings of 4 1/2 stars. There were five more brokers with 4 stars.

The full article is available at the Barron's Online site. Access to the article requires a subscription, however. A good library should have a paper copy for free.

[peppy]

you may be interesting in Forex if you are into currency exchange. otherwise I use scottrade for my broker and they are the best I came across with $7 a trade though.