Anybody here trading European stocks for quarters and dimes? I believe the PDT rule does not apply to them even if you trade with a US broker. Can you trade them on 2 to 1 margin, can you short them easily ? What are the most active and liquid names ?
In France (that's all i know about), brokers are mainly web based and their commisions are not cheap. Moreover, you've got some additive taxes (0.3%) as soon as you trade more than 7830⬠(about 500 shares of a 16 ⬠stock). However, you can short easily (no uptick rules). You can have 5x margin. The liquidity is good, the volatility not as good as in the US. Actually, the most (french) active/liquid names are Alcatel, France Telecom, ST Micro, Vivendi. When I began, I traded french stocks but only one month after I decided to trade futures. Every french daytraders I know trade us stocks only.
x-or, How many French daytraders do you know? Well I have traded Nasdaq since 99 and then eminis for about a year now, I am going to try ESTX 50 but I think IB offers trading on LSE and Deustche Boerse so I was thinking of giving it a try. I don't know what the policy of IB is regarding margin and fees on european exchanges.
OK I just went to their site and it's 4 euros min 0.1% of stock value. A lot higher than US stocks and the fut. Too bad
I don't know any traders physically but a few in french forums. I didn't even notice that IB offers stocks trading on LSE and DTB ! The only thing I heard before is that IB didn't want to support stocks trading on Euronext because of some clearing issues. Give ESTX50 a try.
the stock trading business is years behind the nasdaq trading enviroment in my opinion. There are two platforms I know well here in europe - they are Xetra and Virtx. The problem for daytrading is that most traded stocks have extremly low liqudity. Only the very huge companies have some volume that enables a trader to trade very short time frames. But then commissions are extremly high compared to the USA. Then in switzerland you pay an extra tax on each trade.. called "Stempelabgabe". This tax is very enoying. And there is no margin like the 10:1. I personally only know some people that daytrade at the Virtx but those - very few and they are pros that have started trading on the floor of the nyse 20 years ago. CFD's (Contract for Difference) are becoming more and more popular over here. I personally have never traded them and I'm also not looking forward to trade them. There is only a 5% Margin required and you can trade major stocks with this margin. For those that don't know what CFD's are can find more information @ http://www.gcitrading/cfd-trading.htm
I believe this is the link you attemped to post for GNI CFD trading. http://www.gni.co.uk/brochure/eqintro.asp
Right now daytrading ( stocks) in europe is definitely NOT a good game for a trader . Most of the markets are dryed up completely .There are only a handful of stocks in germany with more than 100000 shares volume in one day ( maybe 10-15) and the commissions are A LOT bigger , and the service and the fills are MUCH worse than in the USA . So most of the active traders from europe trade stocks or futures in the USA .