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BOCI Securities

The international securities arm of Bank of China seems to be a fairly popular choice for online trading of Hong Kong stocks, but I haven’t had any feedback from users who’ve used the fairly extensive list of foreign markets it claims to deal by telephone.

Its website gives absolutely no indication of commission levels, simply saying “Commission rate will be determined and agreed between customer & BOCI Securities”. Some details of custody and other fees are given, but may be unreliable – the claimed custody fees for Malaysia and Thailand are incomprehensibly high.

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Standard Chartered Bank Securities Trading

International banking group Standard Chartered has never previously been noted for a strong interest in retail stock trading, but it entered the online trading market in Singapore in mid 2011 with what may prove to be quite a disruptive product. The new service has highly competitive rates compared with other Singapore brokers and – even more significantly – has absolutely no minimum commission on trades, making it very cost effective for smaller investors.

The range of international markets available is somewhat different to most Singapore brokers – instead of focusing on regional markets, concentrates on the major global venues. However, one notable addition is the Osaka Stock Exchange, offered by relatively few discount brokers outside Japan.

There are also no inactivity fees, custodian fees, dividend handling fees and corporate action fees, which are common for foreign stocks in Singapore. On the downside, the currency conversion charges seems to be higher than most other local stock brokers – users report a margin of around 2% on even relatively liquid currencies.

Most Singapore stock brokers welcome clients from almost anywhere in the world, but in this case it’s not clear whether Standard Chartered is willing to accept applications from non-residents. If any readers have received a definitive answer to this, please let me know through the contact form.

The lower rates for Priority Banking customers listed below require an account balance of S$200,000 or housing loans of S$1,000,000.

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Swissquote

Switzerland’s leading discount brokerage offers a reasonable range of North American and European markets for online trading and a far larger number for broker-assisted trades. As far as I know, it’s the only retail-orientated brokerage in Europe that offers markets such as Brazil or Japan’s Osaka Stock Exchange (as opposed to the more widely traded Tokyo exchange) – although Daniel Stewart, a UK institutional firm that accepts private clients, can also access these and more, while the Hong Kong-based Boom Securities and Phillip Securities are other cheaper alternatives for Japan.

The main drawback is the fees. Minimum commissions on the broker-assisted markets are so high that they are unrealistic for most retail investors. This may be understandable, since they will be traded via intermediaries. However, even the online markets are not cheap – you will do better through many other discount brokers.

However, there is no minimum account size and admin fees don’t look unbearable. So if you’re aiming to make a handful of long-term investments of at least US$5,000-10,000 each in some of the more inaccessible markets it offers, Swissquote could be worth a look. Feedback on everything except fees has generally been good.

The Hong Kong and Singapore stock brokers may be alternatives for Asia, while Brokerjet, Finasta and Orion Securities may be worth considering for Eastern Europe.

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Lim & Tan

This smaller Singapore broker offers a wide range of Asian markets for online trading. However, the service is provided by a foreign intermediary – probably Boom Securities in Hong Kong. Hence investors might as well save the extra fees and go directly to Boom.

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Phillip Securities Hong Kong

International investors comparing brokerage accounts in Asia should be aware that Phillip Securities Hong Kong and Phillip Capital Singapore seem to be run independently of each other and offer different services.

The Hong Kong arm offers more markets online than the Singapore division, but less markets overall. International investors looking for an offshore account to trade Asian markets may do better through its sister firm or OCBC Securities in Singapore.

However, this is still one of the better multimarket brokers around and worth considering, especially if you need to invest in Japanese markets other than Tokyo which are rarely offered by international retail stock brokers (fellow Hong Kong broker Boom Securities is also worth considering for this purpose).

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Haitong Securities (Taifook Securities)

I have received little feedback on this broker. If you would like to add any comments, please email me.

Formerly known as Taifook Securities, the firm was part of the New World conglomerate, controlled by billionaire Cheng Yu-tung. In 2009, it was bought by the Hong Kong arm of mainland brokerage Haitong Securities and renamed.

The company is a major provider of investment services into Hong Kong shares for mainland residents. Although it offers a good range of international markets, it is not routinely used by international investors.

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Boom Securities

Boom was one of the pioneers of online stock trading in Asia. Starting out as an independent with backing from investment banker William Hambrecht, it was bought by Japan’s Monex Group in August 2010.

Boom offers an extremely good range of Asian markets for online trading at rates far lower than any American or European investor will pay for these using brokers in their home country. Following the acquisition by Monex, it can apparently now deal on the Fukuoka, Nagoya, Osaka and Sapporo stock exchanges, making it one of the few discount stock brokers outside Japan to offer stocks not listed on the Tokyo exchange.

The firm is no longer the clear leader in Asia across the markets it covers – Singapore’s OCBC Securities and Phillip Securities are worth considering as well. However, it continues to get very good feedback for customer service and ease of use, and is still one of the best multimarket stock brokers around.

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Fidelity

Fidelity has recently overhauled its international trading service to the point where it may be relatively useful. Previously, you needed a minimum balance of US$25,000 and over 120 trades per year or a balance of US$1,000,000, which made it extremely uncompetitive since any investor who met those conditions could do better elsewhere.

But with the international trading service now open to all account sizes, a large number of new markets added and reasonable fees for online trades in most, it now seems to be one of the most competitive providers available to US investors, at least in terms of range (Interactive Brokers is considerably cheaper, but covers fewer markets). However, be aware of the usual excessive FX conversion fee (up to 1%) – investors should try to work around this as much as possible by avoiding changing currencies within the account too frequently.

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Charles Schwab One Account

This US online brokerage giant now has two international brokerage services: The Schwab Global Account, open to US citizens and residents only, and the international trading part of its long-standing Schwab One Account. The firm has never really advertised the latter much, but it can deal in a very wide range of overseas markets, albeit by telephone during US hours only.

Schwab One Accounts are available to clients outside the US, although the minimum account size will be larger – US$25,000 for most markets, US$10,000 through the Hong Kong and UK arms. Overseas dealing is likely to have a minimum of around US$5,000 per trade for some markets.

The main snag with the service is cost. International dealing rates are 0.75% with a minimum of US$100. While this is lower than rates at the wirehouses, you can do better than that for many of the markets it offers – within the US, try Interactive Brokers, Fidelity or Schwab’s own US resident-only Schwab Global Account. On top of this, its correspondent stock brokers in the overseas markets will add their own charges, include FX conversion (since you can only hold US dollars within the account). That will vary by market, but it’s likely to add 0.15-1.5% depending on region (Europe will be cheaper, emerging Asia more expensive).

That said, while nobody I know well has used Charles Schwab for buying international shares, second-hand feedback says the customer service is very good. Certainly, I was impressed with the knowledge of its representatives when I enquired about opening an account. At this price, I’d still say look for a cheaper broker for the easy markets. But perhaps consider this firm for the more exotic ones if you trade in reasonable size and the US$100 minimum is bearable.