trading directly on international exchanges versus otc

Discussion in 'Trading' started by fusiforme, Apr 18, 2016.

  1. There are a few "F" listed OTC stocks I have been trading for awhile in my Schwab account.

    Now I am setting up an IB account, with the intention of doing most of my trading there. Once I do, I will be able to trade directly on foreign exchanges for the first time. I'm not yet sure what commissions will be for trading these low priced stocks because it seems the IB commission schedule can vary dependong what/how many shares you trade. What I am used to at Schwab is $8.95 a pop.

    However,since I have never traded on foreign exchanges, I am wondering what I should know before I start. What are the pros and cons of trading this way, as opposed to trading on the OTC?

    I'm guessing that if I'm trading on the actual exchange there will be better volume and better fills. But are they any cons? Will this create any complications for me at tax time, for example?

    Also, if there are complications that make it better avoided, can I still trade the F listed OTC at IB (assuming this would save me on commissions)?

    Is there anything I need to be aware of before I set out on this path?

    Appreciate any feedback about this from international traders!
     
    Last edited: Apr 18, 2016