How do I save money by trading foreign stocks through Euro Pacific?
Just about every other U.S. brokerage firm that can even offer access to foreign securities trades those non-U.S. listed securities through domestic market makers on the U.S. over-the-counter market. For example, if the ordinary shares of stock X closed Jan 1 in Hong Kong at the U.S. dollar equivalent on $1.00 per share, the market for those ordinary shares Jan 2 in the U.S. might be 90 cents bid, 1.10 offer. Anyone buying shares of stock X in the U.S. would be forced to pay $1.10 per share. Even if the investor used a discount broker, he would still be paying a 10% premium to buy the stock. Buying 10,000 shares with a 6 dollar commission would cost $11,006. However, the real cost of the trade is not $6, but $1,006; $1,000 to the market maker and & $6 to the broker. When you invest through Euro Pacific, we would execute your buy order directly on the Hong Kong exchange, saving you the $1,000 dollar mark up charged by the market maker. We would charge a commission, but the net effect wo
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- How do I save money by trading foreign stocks through Euro Pacific?
