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Core Pacific – Yamaichi

This Hong Kong brokerage was originally founded in the early 1990s by Taiwan’s Core Pacific Group, now best known internationally for being behind one of the world’s oddest looking shopping malls. It subsequently acquired the Hong Kong operations of Yamaichi Securities – formerly one of the Japanese ‘big four’ brokers – when the latter went bankrupt in 1997, merged with the Hong Kong arm of Taiwan’s Yuanta Securities in 1999 and then got caught up in a lengthy court battle when Core Pacific and Yuanta fell out.

Today, the firm offers trading in most Asian markets and a few others outside the region. However, fees are high and it looks like most investors can get a better deal elsewhere. It’s included in the directory to help with comparisons, but there is no customer feedback available so far.

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KGI Securities

The Hong Kong division of Taiwanese financial services group KGI offers a handful of markets for online trading, while a substantial number of others are available for trading by telephone.

Rates for most are generally not especially competitive by international standards, especially given the high minimum fees (typically US$150 per trade).

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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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UOB Kay Hian

Singapore’s largest stock broker offers a wide range of Asian markets for online and broker-assisted trading. However, I haven’t received much feedback about this firm and my impression when looking for a Singapore stock broking account was that it probably the weakest of all the major Singapore brokers from an international perspective.

The firm doesn’t provide the same amount of information on its services and charges upfront, which is frustrating when trying to compare accounts. Customer service staff tried to be helpful, but seemed less well informed than staff at most of its rivals. Unless you have a particularly compelling reason to favour this firm, international investors looking for a Singapore brokerage account should probably consider OCBC Securities and Phillip Securities first.

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OCBC Securities

OCBC’s online brokerage division is only a few years old, but the firm has developed a strong regional stock broking service very quickly. It offers more markets online than any other Singapore broker and only Phillip Securities rivals it for overall range.

Costs are reasonably low (although it is now charging dividend handling fees on dividends from foreign stocks) and customer service is good. Given the advantages of having a bank and brokerage account with the same group, OCBC is one of my top recommendations for international investors looking to open a bank account and brokerage account in Singapore (although Phillip Securities is also worth considering).

Some investors from outside Asia occasionally assume that OCBC’s full name – Oversea-Chinese Banking Corporation – implies the firm is from mainland China or confuse it with ICBC (Industrial and Commercial Bank of China). However, there’s no connection – OCBC is Singapore-based and operates mostly in Southeast Asia.

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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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EverTrade

EverTrade is part of Florida-based EverBank, which specialises in postal, telephone and internet banking. It offers a large range of international markets – especially in Europe – for online and broker-assisted trading.

The service is roughly comparable to Fidelity in terms of reach and which one would work out as better value would depend on your individual trading pattern. Broadly, Fidelity looks cheaper for online trades in many circumstances, while Evertrade may be more competitive when placing orders through a broker.

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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.