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 All about ETFs / Foreign Brokers, Exchange traded funds

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apathen
post Sep 12 2018, 06:03 PM

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QUOTE(hyperzz @ Sep 11 2018, 05:38 AM)
If you ever wonder how free brokerages (i.e. 8 Securities,  Robinhood, etc)  earn their profit, you should read the book Flash Boys: A Wall Street Revolt. Another famous book by the same author is The Big Short.

While I am not totally against free brokerage, you should know what happens behind the scene. Basically, a free lunch is not really free.
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pardon me, after reading your link I still don't understand what the threats are, mind sharing?

Ramjade
post Sep 12 2018, 06:03 PM

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QUOTE(apathen @ Sep 12 2018, 06:00 PM)
oh too bad, because their options trade also no commission.
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Use 8 securities if want to have zero commission.
apathen
post Sep 12 2018, 06:05 PM

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QUOTE(Ramjade @ Sep 12 2018, 06:03 PM)
Use 8 securities if want to have zero commission.
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thanks, already got that. Like i mentioned 8 securities not offering options.
hyperzz
post Sep 13 2018, 03:11 AM

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QUOTE(apathen @ Sep 12 2018, 06:03 PM)
pardon me, after reading your link I still don't understand what the threats are, mind sharing?
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It is highly suspected that free brokerages engage in front-running their customers to earn their profit.
This article explains the concept of front-running very well:

How Traders Use Front-Running to Profit From Client Orders

Nowadays, front-running is made easier with the help of High Frequency Trading (HFT), dark pools, etc.

Here are more articles to help you understand these financial stuff:

RobinHood 1 : A very long article. Read from paragraph 8 onwards. "Robinhood answers this exact question on their website, ..."

RobinHood 2

If you the buy-and-hold type, free brokerages might still work for you.
However, if you are a frequent trader, please investigate more on your own.
SUSMNet
post Sep 15 2018, 09:55 PM

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If transfer from instarem(MYR) to transferwise(usd).

i dont see transferwise can transfer usd to IB broker in usd also.

pls advise.
Ramjade
post Sep 15 2018, 10:08 PM

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QUOTE(MNet @ Sep 15 2018, 09:55 PM)
If transfer from instarem(MYR) to transferwise(usd).

i dont see transferwise can transfer usd to IB broker in usd also.

pls advise.
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Get IB US bank account with all the code. Do a ACH transfer over (their version of IBFT)
SUSMNet
post Sep 15 2018, 10:18 PM

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ACH have fee
But bank wire dont need to pay fee at transferwise
Ramjade
post Sep 15 2018, 10:20 PM

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QUOTE(MNet @ Sep 15 2018, 10:18 PM)
ACH have fee
But bank wire dont need to pay fee at transferwise
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You can't get everything for free. Already got cheap rates some more don't want to pay Transferwise fee. doh.gif doh.gif
SUSMNet
post Sep 15 2018, 10:23 PM

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wait do u mean
if i have USD at transferwise, the only option that i can send USD to my IB broker is using the ACH option?


Ramjade
post Sep 15 2018, 10:25 PM

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QUOTE(MNet @ Sep 15 2018, 10:23 PM)
wait do u mean
if i have USD at transferwise, the only option that i can send USD to my IB broker is using the ACH option?
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Yes. Unless you can find some other way. From what I read, their ACH is like our IBFT.
hyperzz
post Sep 15 2018, 11:31 PM

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QUOTE(MNet @ Sep 15 2018, 10:23 PM)
wait do u mean
if i have USD at transferwise, the only option that i can send USD to my IB broker is using the ACH option?
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Yes, use ACH.
When depositing USD, choose "ACH Notification Initiated at Your Bank". If you have a real US bank account, you can choose "ACH Initiated at Broker".

On the next step, put "Community Federal Saving Bank" as the Sending Institution. You must leave the bank account number blank. When sending USD, TW uses a different account number from your borderless account but your name will appear as the sender.

I only tried once but the transfer was rejected, probably because I filled in my borderless account number. The full amount was returned to my TW account later. Please let us know if you succeed in your transfer.

This post has been edited by hyperzz: Sep 15 2018, 11:39 PM


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hyperzz
post Sep 15 2018, 11:34 PM

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QUOTE(Ramjade @ Sep 15 2018, 10:25 PM)
Yes. Unless you can find some other way. From what I read, their ACH is like our IBFT.
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IBFT transfer is executed instantly but ACH usually takes 2 - 3 days. At least 1 day if you're lucky.
apathen
post Sep 17 2018, 05:49 PM

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QUOTE(hyperzz @ Sep 13 2018, 03:11 AM)
It is highly suspected that free brokerages engage in front-running their customers to earn their profit.
This article explains the concept of front-running very well:

How Traders Use Front-Running to Profit From Client Orders

Nowadays, front-running is made easier with the help of High Frequency Trading (HFT), dark pools, etc.

Here are more articles to help you understand these financial stuff:

RobinHood 1 : A very long article. Read from paragraph 8 onwards. "Robinhood answers this exact question on their website, ..."

RobinHood 2

If you the buy-and-hold type, free brokerages might still work for you.
However, if you are a frequent trader, please investigate more on your own.
*
thank you for the pointers.
But for ikan bilis trader like me i doubt would be affected much by front running (when my order to buy and sell stock execute at the price i ask or bid) except sacrify privacy if they share their API. Just like we use google for free but they use our activities to show us advertisement. Just be mindful that if privacy is a concern then can use other paid brokers.
hyperzz
post Sep 17 2018, 07:49 PM

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QUOTE(apathen @ Sep 17 2018, 05:49 PM)
thank you for the pointers.
But for ikan bilis trader like me i doubt would be affected much by front running (when my order to buy and sell stock execute at the price i ask or bid) except sacrify privacy if they share their API. Just like we use google for free but they use our activities to show us advertisement. Just be mindful that if privacy is a concern then can use other paid brokers.
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The choice is yours. No debate on this. I post this solely for educational purposes, so that people can make an informed decision.

QUOTE
Turns out, Robinhood doesn't perform all their customers' trades on their own platform, but instead, they sell the trading orders to 5 high-frequency trading companies; they are Apex Clearing Corporation, Citadel Securities, Two Sigma Securities, Wolverine Securities, and Virtu Financial. From there, they will choose which trading platform to use to run the transactions on behalf of their customers.

Those companies pay Robinhood between USD 0.00008 and USD 0.00026 for each USD sold in a trading transaction. While it may seem insignificant, Robinhood actually makes a decent amount of income from such system. In fact, compared to companies, such as E*Trade that makes USD 47 million and TD Ameritrade that makes USD 119 million per quarter, Robinhood is said to generate 10 times more in profit.

Looking at this, it can be said that Robinhood's "clients" are actually the high-frequency trading companies, and their "products" are actually the customers who use their investment services.

According to Bitcoinnews, the high-frequency trading companies make hefty profit from Robinhood's customers, whereas the customers don't really pay attention to the unoptimized deals they get from Robinhood, probably due to the "Invest for Free" marketing campaign run by the company.


Robinhood's pofit

This post has been edited by hyperzz: Sep 18 2018, 02:13 AM
CharAng
post Sep 29 2018, 03:38 PM

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Hi All creative minds!
Any recommendation of any foreign ETF that behaves like 'FD'? Where we can park 'US/Euro' for short term (3-6months or even 1year), low risk like FD and yet receive slight higher interest than FD? (like ASNB or EPF equivalent) smile.gif

Ramjade
post Sep 29 2018, 03:45 PM

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QUOTE(CharAng @ Sep 29 2018, 03:38 PM)
Hi All creative minds!
Any recommendation of any foreign ETF that behaves like 'FD'? Where we can park 'US/Euro' for short term (3-6months or even 1year), low risk like FD and yet receive slight higher interest than FD? (like ASNB or EPF equivalent) smile.gif
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You can forget about such things in overseas. Only in Malaysia we have ASNB. All modern country FDs are average in the 0-1% interest.

You only have money market fund which again won't give much.

The closest you can get is preference share but they are usually priced at say USD100/share. And no, you can purchase only one. You usually need like few thousands of dollars.
Ramjade
post Oct 11 2018, 07:59 AM

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QUOTE(sentinelking @ Sep 18 2018, 04:33 PM)
I saw somewhere on the web that malaysians can apply for poems sg for oversea stock investing. But I can't find any discussion regarding this platform in this topic. Any input?
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All info can be found here. Word of advice. Don't use POEMS SG for any stock brokerage.

There are better options available.
dazzletws
post Oct 20 2018, 12:24 PM

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Hello all, newbie here to ETFs and index funding. Hope someone can clarify some question I have.. At the moment I have interactive brokers account, and a SG account with SGD.

1) If I want to fund, does it matter which currency I pick to fund with? I don't see any explanation about why I would want to send in SGD or USD. Only thing I can think about is maybe my bank will give me unfavourable conversian if I do SGD -> USD? In that case is'nt it better I fund using SGD?

2) Is there any other charges to know about. Perhaps, does IB charge to receive or is it just the TT charges?

Appreciate the help, thank you in advance.

This post has been edited by dazzletws: Oct 20 2018, 12:37 PM
Ramjade
post Oct 20 2018, 01:23 PM

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QUOTE(dazzletws @ Oct 20 2018, 12:24 PM)
Hello all, newbie here to ETFs and index funding. Hope someone can clarify some question I have.. At the moment I have interactive brokers account, and a SG account with SGD.

1) If I want to fund, does it matter which currency I pick to fund with? I don't see any explanation about why I would want to send in SGD or USD. Only thing I can think about is maybe my bank will give me unfavourable conversian if I do SGD -> USD? In that case is'nt it better I fund using SGD?

2) Is there any other charges to know about. Perhaps, does IB charge to receive or is it just the TT charges?

Appreciate the help, thank you in advance.
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1. Don't change using banks. IB offer better rates than banks.
dazzletws
post Oct 20 2018, 02:31 PM

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QUOTE(Ramjade @ Oct 20 2018, 01:23 PM)
1. Don't change using banks. IB offer better rates than banks.
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Hi, sorry let me clarify - I am definitely using IB and NOT my bank to buy ETFs. I am trying to transfer money from my SG bank to IB but I don't know which currency to pick.

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