Recently I have taken a keen interest in NYSE. I realised how very different it is from SGX. I’ll just list down a few points before I really move in on it!
NYSE
- More opportunities due to more listings there
- Higher potential capital gains
- Faster markets
- Trading strategies seem to work better there
- Paper trades have all been profitable
- Commission rates of only $10
A stark difference is the market opening hours but personally I’m not too concerned about it. With the implementation of stops, I can easily enter or exit a trade without having to be awake! Without being taxed on capital gains, I think it’s a good move to go into NYSE. Perhaps I’ll keep my dividend incomes to SGX market since it’s not taxed here.
To go into NYSE, currently it would cost me $20 if I stick to my broker. If I opened a trading account with another broker, City Index / ThinkOrSwim, I would have to learn how to use their platform, etc. It’s quite confusing for me now. These brokers deal with CFD accounts means I would need to learn many more things, especially portfolio size management. I have only quite a brief knowledge on CFD such as maintenance margin and such. My plan is to already begin to trade in University to pay for my school fees if I failed to clinch a scholarship. If I do get my scholarship, extra income is always nice! 🙂
I understand the risk of CFD and I admit I do have fears about it. What if I can’t contain my greed, position size gets too big, etc. I think there’s still a lot of preparatory work that I have yet to do. Although my plan for CFD is to take on multiple positions and to short-sell, I worry I will take too much risk when my eyes get blinded.
I definitely will go into the US market, the only question is when and which broker. If anyone who has experience, please recommend in the Comments section! Would greatly appreciate your help!
My Route To Financial Freedom 
young man, welcome to the world of the free markets (NYSE, NASDAQ). For starters, playing with CFDs means leverage, something dangerous if not handled properly, and buying US shares on City Index is expensive (US$25 per pop, or US$0.15 per share, min US$15 charge). You might think of opening an account with US brokerages (after filling the W8 form), deposit USD and start trading. Eg – E-trade costs US$10 per trade, BUT funds has to be in the account before buying i.e no contra. Do note that volatility is incredible here, stop loss/hit profit can happen intra-day (!) or within few hours for that matter.
Naturally, good thing about CFD is shorting the market….i keep a long list of US counters over the last 5-6 years of monitoring the markets, and now oil & gas is the most severely beaten down……..buy when everyone is selling…..happy hunting and good luck with your scholarship!
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Hi Jason,
Thanks for taking the time to craft out such an insightful reply!
Yes, I’m a little worried about not handling it right as well. Should I also be overly concerned about the interest rates they are charging me? I last checked it was 9% on TOS. A tad bit high but I definitely don’t have the intention to hold it for the whole year. I’m thinking perhaps the volatility in US markets could outweigh the cost.
Wow I almost got misread City Index’s website on the brokerage fee. Min of $10 was for SGD shares only. Thankfully you raised it up! You mentioned E-trade, based on your experience, what’s the kind of leverage they offer and is there a minimum deposit amount? How is your experience with E-trade, good?
Yes, I’ve noticed the O&G sector, especially with the introduction of shale! Thank you! 🙂
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E-trade is strictly whole sum amount, no leveraging, useful platform and keeps one disciplined………dont think you should be toying with CFD on US stocks, esp without prior experience – heart stopping to say the least. I do play with US/HK/Aussie stocks using CFDs on city index but in very small lots (cos comm is so ex) and volatility crazy. Believe starting off with US$10-15k on E-trade should serve you well, start slow to get the hang of the beta……
As for O&G, getting smashed due to plunge in oil prices…….good to check out counters like RIG, HERO, PBR etc.
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I personally have account with Thinkorswim and Interactive Broker. If im not wrong, you can get $5 trades at TOS and their platform is not hard to learn. I personally use them for charts and options.
IB charges fairly low commission but have a minimum activity fee. so you might want to look into that. Like what you say, the only few difference between US and SG is that
1) hugh liquidity in US compared to SG
2) minimum 1 share for US and minimum 1 lot (100 shares) for SG
3) Commissions about $25 (SG) and <$10 (US)
4) Stop loss or take profit in US, not available in SG
5) Dividend plays are taxed at 30% (US), not taxed for SG stocks
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So for a less active trader like myself, TOS should be a better option right? How’s your experience with TOS? And do they provide leverage?
Thanks!
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