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Etrade Closes Global Trading


randomep
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Etrade just informed me that my global trading account will not exist by July. I guess global trading isn't profitable for them.

 

So they told me that I could hold my global equities in my regular US account. After talking to them twice they weren't very helpful. I am not sure about two things:

 

1. dividends, in a US account that is only denominated in US currency, does that mean every dividend is instantly converted to USD?

2. they say each overseas stock has a US equivalent; for example I own Tachibana (TYO:8159) which is also TBNAF on OTC. Does this relationship really exist for every overseas security? another example I guess is TSE:SEC <-> SVCTF ?

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I'll plan to consolidate my Etrade Global Account into my Fidelity account.  Fidelity has an easy to use online process to make such transfers.  You'll also have more foreign markets available than Etrade, and a much smoother process for currency exchanges.  IB is also another option I'll think about.

 

2. they say each overseas stock has a US equivalent; for example I own Tachibana (TYO:8159) which is also TBNAF on OTC. Does this relationship really exist for every overseas security? another example I guess is TSE:SEC <-> SVCTF ?

 

This point is not true.  It is the case only if there is a U.S. market maker for such overseas security, in which case it is assigned the 5-letter ticker symbol ending in -F, signifying a "Foreign Ordinary."  I have several Korean stocks with Fidelity that have no U.S. market maker, so Fidelity lists it on my statements by a CUSIP number.

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It makes sense that there shouldn't be so many discount brokers for global stocks. I would recommend Interactive Brokers. I am a late convert, but am convinced it is the best tool for power users (and we on this board are all power users).

 

It is funny how ignorant the representatives you spoke to were. I suppose it's extremely rare for customers to want to trade anything other than megacaps, internationally.

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