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 Buy US stocks on Etoro, non CFD, receive dividend, etc

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Icehart
post May 20 2020, 01:11 PM

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I'm using eToro but I wouldn't trust Grade C regulators (such as Cysec).

Luckily ASIC eToro changed just a few days ago. You can now buy underlying assets in eToro while under ASIC.

By the way, there's no difference between owning CFD and underlying asset if you choose x1 leverage in the platform.

Dividends are given on ex-date for CFD and payout date for underlying asset, less 30% withholding tax.

This post has been edited by Icehart: May 20 2020, 01:19 PM
Icehart
post May 20 2020, 03:31 PM

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QUOTE(Ivan113 @ May 20 2020, 02:52 PM)
got difference, the reason why last time I wouldn't trade stock or ETF CFD in etoro it's because of the overnight and weekend fees, it's ridiculously high if you plan to keep it for long term, now no more if it's non CFD trade.

Thanks for sharing about the Grade C regulator thing, didn't know that.
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Where did you get that information?
There is no fees for CFD stock if you choose x1 leverage.
I've been trading on eToro for 6 months holding CFD stocks and I've not paid a single cent for overnight fees (under x1 leverage).

If you choose x2, you are using margin to trade and for that, you have to pay the margin rate.
Icehart
post May 20 2020, 03:55 PM

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QUOTE(Ivan113 @ May 20 2020, 03:44 PM)
oh really? then it must be my mistake then because I've never really bother to check the 1x in CFD trade, because my assumptions was as long as it's CFD, there'll be overnight fees.

But how come you'll get dividend since technically no stocks were own? Where did the dividend money comes from?
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Overnight fees are only applicable if you're utilizing leverage to trade.
Or buying commodity CFDs.

When it comes to stock CFD and ETF, there is no associated cost to ownership. In fact IMO CFD is better because you get the dividends faster.

Dividends are paid because you own the assets indirectly.

When you perform trades in eToro Australia (and this is only for Australia, other regions I'm not sure), eToro will hedge by doing a similar exact transaction with another third party broker. This is covered in their PDS.
Icehart
post May 20 2020, 07:17 PM

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QUOTE(Ivan113 @ May 20 2020, 05:04 PM)
Hmm, I found the info about getting dividend in Etoro, thanks alot for your advice  notworthy.gif 

https://www.etoro.com/customer-service/help...-pay-dividends/
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You're welcome. All the best to your investing in eToro.
One big tip is to always reload using BigPay. Instant deposit and very good exchange rate.
Icehart
post 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?
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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.
Icehart
post 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?
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Of course.
Zero commission and favourable exchange rate.
Icehart
post 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?
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No foreign broker is licensed by SC.
As long as your broker is regulated by FCA or ASIC it is fine.
Icehart
post 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?
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All information is available here: https://www.etoro.com/trading/fees/
Icehart
post 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.
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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.
Icehart
post Jun 16 2020, 09:55 PM

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QUOTE(z21j @ Jun 16 2020, 09:07 PM)
Not arguing anything and Im not saying etoro is a scam. Just find the 0 commission thingy is like misleading when they actually factored it in the spread, like forex. In terms of fractional shares - whether or not you are buying underlying asset or CFD, and whether there is a need to "re-emphasis" that buying x1 is not CFD - who cares (if you are the etoro user)? End of the day you still cant transfer out like other platforms. I'm just curious why this etoro platform is more "popular" than the other platforms, like you say pretty much everyone has picked it up (and how many users out there are really know about this "0 commission" vs "spread diff", or a lot of people just dont care because etoro provides delayed quotation anyway?)
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It's famous due to the social trading aspect.
There are a lot of talented people to follow in eToro. You just set aside funds and follow and they'll do the work.

In terms of features and spreads, they are quite competitive. I wouldn't mind the 0.09% spread on the fact that it's negligible if you trade on non-leveraged position.
Icehart
post Jun 18 2020, 12:25 AM

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QUOTE(z21j @ Jun 17 2020, 11:12 PM)
Perhap I misunderstood because I totally not familiar with how etoro works. See pic below, that I just traded purely to illustrate where am i coming from.
Market price was 1443.43 (but when you buy, you will buy at 1445.43 even if it is x1 unleveraged). Whereas in other platform, i can get google share at 1443.43 (market price - that's the typically willing buyer/seller transaction in traditional trading market).

So the diff of 1445.43 - 1443.43 = 2 bucks (if they are not so call indirect "commission" then what do you call it as)? For discussion purpose cause I really dont know. 

Etoro to me sound like "spread trading" like forex (which is perfectly fine for me cause I play forex too) but I really have big question why it says zero commission. If etoro "modifies" the traditional equity trading into this model, they can go out and say zero commission but perhaps not many know they are actually buying "slightly higher" than other platform if execute the same timing. People might just thought the market is volatile but it's actually not.

user posted image
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I don't know what's the fuss about in the spread as really it's negligible.
Don't be the case of penny wise pound foolish.

The spread tends to go higher as share price rises.
This same mechanism is similar even in KLSE.

This post has been edited by Icehart: Jun 18 2020, 12:28 AM
Icehart
post Jun 18 2020, 06:20 PM

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QUOTE(dwRK @ Jun 18 2020, 04:24 PM)
what it tells me is only this... current price or last done price is 1443.43... the current asking price is 1445.43... the bidding price is 1442.13... to me nothing wrong or unusual... willingly buyer /seller

I can only guess that the buy and sell button is for easy quick market buy and sell... but there "should" be a limit order somewhere you can enter your own price... a lot of platforms are like this... also I cannot imagine a platform without ability to enter limit orders...

to further check...if I take the mid price ± 0.9%... I don't get the bid/ask prices... if I take the current price and do the same... doesn't come back either

you should look at the level 2 DOM...should be quite evident if etoro is doing price spreading...where the spread is always constant or has a minimum gap beyond the min price for the instrument

btw... goog closed at 1451.12.... with a bid/ask spread of $6.79 that is much bigger than your example
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There is a limit order in the eToro platform. Instead of the market order, you can choose limit order.
Icehart
post Feb 2 2021, 12:02 AM

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QUOTE(red streak @ Jan 31 2021, 07:46 PM)
Interesting, too bad I don't have a VISA/MC that has cashback. Kinda regret going for Maybank.
Afaik only eToro AUS has real shares. Otherwise you're trading CFDs which aren't as good.
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UK has always been buying underlying assets.
AUS used to be CFDs but they change it to underlying asset last year.
Icehart
post Sep 29 2021, 12:27 AM

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QUOTE(Yggdrasil @ Jul 12 2021, 12:48 AM)
IIRC, they charge fee when you want to withdraw. Withdrawal is dodgy. Have you tried? If you haven't, it's funny you trust a broker when you haven't withdrawn. Most Malaysians reported that they got random stranger refunding them their monies back. Meaning some random dude's name will appear on your bank statement.

IBKR is not leceh. You can deposit directly into IBKR using TransferWise as long as it's not USD. SG bank account only needed if want to get back money. There's a free monthly withdrawal without charge.
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Withdrawal is free once you hit their Gold club, which is $10,000 invested or more.
As for those transactions, it happens to my Forex brokers as well, but these should be ok since they are licensed under Tier-1 FCA.

 

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