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Buy US stocks on Etoro, non CFD, receive dividend, etc
SwarmTroll
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May 22 2020, 11:48 AM
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Hey guys, coming from Dividend Magic's blog
Recently eToro has announced ZERO commissions for non-leveraged positions on US stocks. They also do not charge handling fees on dividends and the only cost to dividends will be different withholding taxes the different countries charge.
So now buying US Stocks under eToro will be based on underlying assets (Non-CFD?) and zero fees?
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Icehart
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May 22 2020, 01:33 PM
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QUOTE(SwarmTroll @ May 22 2020, 11:48 AM) Hey guys, coming from Dividend Magic's blog Recently eToro has announced ZERO commissions for non-leveraged positions on US stocks. They also do not charge handling fees on dividends and the only cost to dividends will be different withholding taxes the different countries charge. So now buying US Stocks under eToro will be based on underlying assets (Non-CFD?) and zero fees? This is a new update for ASIC eToro account holders (Default for new Malaysian registrations). If under eToro UK or Europe, all these while you have been buying underlying assets, not CFDs.
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red streak
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May 22 2020, 10:01 PM
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Should make this the mega thread
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Ken.B
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May 30 2020, 08:29 AM
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Getting Started
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Hi guys,
Want to top up JD at x1 leverage but it says "Setting order failed, leverage settings not allowed. Please use higher leverage."
Previously I bought all stocks at X1 leverage. Is there any changes made?
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z21j
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Jun 12 2020, 12:43 AM
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QUOTE(Ken.B @ May 30 2020, 08:29 AM) Hi guys, Want to top up JD at x1 leverage but it says "Setting order failed, leverage settings not allowed. Please use higher leverage." Previously I bought all stocks at X1 leverage. Is there any changes made? have you resolved it?
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bmwcaddy
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Jun 12 2020, 12:12 PM
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dumb question but is it better to buy US stocks via ETORO as compared to traditional bank app like Maybank Trade?
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Icehart
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Jun 12 2020, 11:22 PM
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QUOTE(bmwcaddy @ Jun 12 2020, 12:12 PM) dumb question but is it better to buy US stocks via ETORO as compared to traditional bank app like Maybank Trade? Of course. Zero commission and favourable exchange rate.
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Khabib Nurmagomedov
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Jun 13 2020, 02:14 AM
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Getting Started
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QUOTE(Icehart @ Jun 12 2020, 11:22 PM) Of course. Zero commission and favourable exchange rate. But not regulated by SC. Isnt that a huge risk?
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Icehart
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Jun 13 2020, 02:17 AM
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QUOTE(Khabib Nurmagomedov @ Jun 13 2020, 02:14 AM) But not regulated by SC. Isnt that a huge risk? No foreign broker is licensed by SC. As long as your broker is regulated by FCA or ASIC it is fine.
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bmwcaddy
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Jun 13 2020, 10:13 AM
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What are the rates applied? Withdrawal fee/CFD fee?
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Icehart
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Jun 13 2020, 03:40 PM
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QUOTE(bmwcaddy @ Jun 13 2020, 10:13 AM) What are the rates applied? Withdrawal fee/CFD fee? All information is available here: https://www.etoro.com/trading/fees/
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red streak
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Jun 13 2020, 04:38 PM
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No fees if you trade US stocks at x1 leverage since they buy the underlying assets for you but the same roughly 0.09% spread is built into the buying/selling price. It costs $5 per withdrawal and the minimum initial deposit $200 but every subsequent one is $50. Do note that there's minimum trading amounts so that $50 is essentially just 1 investment:
Shares: $50 ETFs: $200 Commodities: $25 (at least for OIL)
So it's not really a fractional share broker. Other platforms like Trading 212 allows you to invest with as little as $1 which is better for weekly/monthly DCA. Also like Rakuten, this platform has tendency to have issues whenever the market opens under volatile conditions. If you're thinking of daytrading during opening hours, this might not be the ideal platform for you as it usually takes some time to "fix" the issues.
This post has been edited by red streak: Jun 13 2020, 04:46 PM
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bmwcaddy
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Jun 13 2020, 06:48 PM
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QUOTE(red streak @ Jun 13 2020, 04:38 PM) No fees if you trade US stocks at x1 leverage since they buy the underlying assets for you but the same roughly 0.09% spread is built into the buying/selling price. It costs $5 per withdrawal and the minimum initial deposit $200 but every subsequent one is $50. Do note that there's minimum trading amounts so that $50 is essentially just 1 investment: Shares: $50 ETFs: $200 Commodities: $25 (at least for OIL) So it's not really a fractional share broker. Other platforms like Trading 212 allows you to invest with as little as $1 which is better for weekly/monthly DCA. Also like Rakuten, this platform has tendency to have issues whenever the market opens under volatile conditions. If you're thinking of daytrading during opening hours, this might not be the ideal platform for you as it usually takes some time to "fix" the issues. How about long term holdings? Plan to get some us stock like alibaba and facebook and just let them sit for years
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red streak
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Jun 13 2020, 07:09 PM
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QUOTE(bmwcaddy @ Jun 13 2020, 06:48 PM) How about long term holdings? Plan to get some us stock like alibaba and facebook and just let them sit for years Still no fees for buying shares in the long term as long as you don't use leverage even for CFD shares in the UK and elsewhere. They already factor in their "sales charge" when you buy and sell. That's how they make money. Etoro has been around since 2006 so they're one of the better and more stable fintechs out there. As long as you do the proper research about it you'll be fine. I've seen a recent influx of newbies crying about the price difference between "the market" and eToro because they're just there to gamble But there is some truth to that. Some of the extremely volatile stocks have had issues with price differences for stuff like NCH since the NYSE keeps carrying out trading halts. Etoro isn't great when it comes to opening the trades back up after they're released. There's a massive delay in that regards which is why I said it's not great for daytrading along with the technical issues on busy days where their servers get overwhelmed.
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bmwcaddy
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Jun 13 2020, 09:02 PM
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QUOTE(red streak @ Jun 13 2020, 07:09 PM) Still no fees for buying shares in the long term as long as you don't use leverage even for CFD shares in the UK and elsewhere. They already factor in their "sales charge" when you buy and sell. That's how they make money. Etoro has been around since 2006 so they're one of the better and more stable fintechs out there. As long as you do the proper research about it you'll be fine. I've seen a recent influx of newbies crying about the price difference between "the market" and eToro because they're just there to gamble But there is some truth to that. Some of the extremely volatile stocks have had issues with price differences for stuff like NCH since the NYSE keeps carrying out trading halts. Etoro isn't great when it comes to opening the trades back up after they're released. There's a massive delay in that regards which is why I said it's not great for daytrading along with the technical issues on busy days where their servers get overwhelmed. I see, if you dont mind me asking further: If i were to buy alibaba stock say (200 USD), then my payment will be 200 USD + 0.09% of transaction (buy)? and another 0.09% when selling?
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red streak
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Jun 13 2020, 10:57 PM
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QUOTE(bmwcaddy @ Jun 13 2020, 09:02 PM) I see, if you dont mind me asking further: If i were to buy alibaba stock say (200 USD), then my payment will be 200 USD + 0.09% of transaction (buy)? and another 0.09% when selling? No. You'll get $200 worth of shares but it's 0.XX higher than the market price. Then when you sell it, it's reduced by that amount again. Different stocks/etfs/whatever have slightly different rates but you'll be shown the price up front when you're buying/selling. I'll use Apple as an example since Alibaba isn't showing the correct prices for whatever reason. » Click to show Spoiler - click again to hide... « Notice the price difference. If you google the Apple share price the top left corner is what the market price is right now but you're paying more than the actual price, the difference is the profit etoro makes and is what people refer to as the spread. You get charged the same percentage when trying to close your position. That's the reason why people dislike platforms like etoro because you're down a certain amount just by opening a position. There's a practice account that you can try out to get a feel of how it all works. It's a lot simpler than the other alternatives out there since it's built around social trading and for newbies to lose make their money This post has been edited by red streak: Jun 13 2020, 11:00 PM
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bmwcaddy
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Jun 14 2020, 01:43 AM
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QUOTE(red streak @ Jun 13 2020, 10:57 PM) No. You'll get $200 worth of shares but it's 0.XX higher than the market price. Then when you sell it, it's reduced by that amount again. Different stocks/etfs/whatever have slightly different rates but you'll be shown the price up front when you're buying/selling. I'll use Apple as an example since Alibaba isn't showing the correct prices for whatever reason. » Click to show Spoiler - click again to hide... « Notice the price difference. If you google the Apple share price the top left corner is what the market price is right now but you're paying more than the actual price, the difference is the profit etoro makes and is what people refer to as the spread. You get charged the same percentage when trying to close your position. That's the reason why people dislike platforms like etoro because you're down a certain amount just by opening a position. There's a practice account that you can try out to get a feel of how it all works. It's a lot simpler than the other alternatives out there since it's built around social trading and for newbies to lose make their money Ah i see, thank you very much for your detailed explanation. If etoro isnt that great, is there a better alternative to buy n hold foreign stocks? My maybank trade can buy global share but dont have foreign trade limit, need dealer to increase
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red streak
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Jun 14 2020, 06:04 PM
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QUOTE(bmwcaddy @ Jun 14 2020, 01:43 AM) Ah i see, thank you very much for your detailed explanation. If etoro isnt that great, is there a better alternative to buy n hold foreign stocks? My maybank trade can buy global share but dont have foreign trade limit, need dealer to increase Go for IKBR if you're thinking of holding for the long term. There's a thread here on how to set it all up. TD Ameritrade is another alternative.
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Icehart
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Jun 14 2020, 08:19 PM
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QUOTE(red streak @ Jun 14 2020, 06:04 PM) Go for IKBR if you're thinking of holding for the long term. There's a thread here on how to set it all up. TD Ameritrade is another alternative. I think 0.09% is negligible if you're really into it for the long term. Unless you have more than $100k to play with, IBKR charges you a maintenance fee of $10/month.
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red streak
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Jun 14 2020, 08:40 PM
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QUOTE(Icehart @ Jun 14 2020, 08:19 PM) I think 0.09% is negligible if you're really into it for the long term. Unless you have more than $100k to play with, IBKR charges you a maintenance fee of $10/month. Only if you register through the main site and not through the alternative. Otherwise there's no fee if your balance is above $1000. The thing about long term investing is you want the company to be there when you retire. Etoro has a decent track record but I wouldn't put it firmly in the same territory as Interactive Brokers or TD Ameritrade, which is under Charles Schwab. Etoro is a good way to get into the whole investing scene but the lack of fractional shares trading leaves a lot to be desired if you're trying to DCA instead of lump sum. Their stupid minimum balance makes investing into a selection of ETFs unfeasible since each one requires a minimum of $200 (almost RM1,000) per trade. This post has been edited by red streak: Jun 15 2020, 12:06 AM
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