If a stock the trades on the london stock exchange but

Discussion in 'Stocks' started by gimp570, Apr 26, 2010.

  1. gimp570

    gimp570

    Is listed under 3 different currencys does it matter which one i buy? I am trading in the US with IB


    they have 3 different stock symbols for three diffent currencies...3 different avg volumes all the same company

    USD
    EUR
    GBP

    does it matter which one i buy?
     
  2. You'll probably want to stay away from the GBP stock since it's probably taxable (UK stamp duty) through IB.

    Whether to trade the EUR or USD stock would probably depend on which hours you want to trade. Are you based in Europe or US-based? Do you have charts for either one? Do you care?

    If you are a US resident, it's probably better to stay with USD stocks. They're traded on US exchanges during US daytime hours and charting/data is generally available & very cheap/free.

    Data/charting for non-US stocks costs more, is difficult to get & commississions are generally higher as well on foreign-listed securities.

    It all matters in order to reach a proper decision.

    BTW, some stocks are truly "multinational" in their trading. Some stocks trade heavily in different parts of the world. Australia's BHP for example trades in London, NYSE, AU, So. Africa and maybe some other exchanges.

    Some other "International" stocks may be listed in 3-4 different world exchanges but trade primarily in 1 exchange and sometimes 100-200 shares in the other exchanges. So, try to always go where a stock's primary market is.
     
  3. gimp570

    gimp570

    So if I buy the stock that trades in US dollars i would not have to pay that "UK Tax Stamp" thinger???
     
  4. Which stock? Give me the name of 1 stock & I can tell you.

    If you buy it on NYSE, you don't have these other issues.

     
  5. gimp570

    gimp570


    the stock is Third point offshore it trades on LSE

    TPOU (USD)
    TPOG (GBP)
    TPOE (EUR)

    not sure what to think about them...Its hard to find info on them
     
  6. I would use a limit order to buy TPOU since it's USD and I believe IB will then charge you the same commish as if it were a US product order.

    This is a very very thin stock. I stay away from these things but again, with a limit order it's probably ok. That way you find out the nuances with regard to commission & taxes.

    Good Luck!
     
  7. gimp570

    gimp570


    is this the best way to buy into loebs fund? Or is there another way that i am unaware of??


    thanks
    z
     
  8. gimp570

    gimp570

    UK Tax Stamp is .05% of every purchase...


    so that would be $500 for every 100,000 that you buy?

    is this right? Its only on they buys?
     
  9. #10     Apr 26, 2010