Buying US shares from SA

[Werner_1]

Has anyone online done this yet? I am trying to find the best and most cost effective method of acquiring US based shares from SA. Does anyone know if one can do this through SBK?

[sasa]

What about buying on the Indian market? They have had some phenomenal returns this year (50.2%, compared to USA 1.8%; UK -4.2% and RSA 2.5%)

[Werner_1]

Interesting, havent looked at their market, but i would like to organise some kind of brokerage account that can trade all the markets...

[#4]

Am no expert in this, dont have a foreign trading account, but I believe you need Reserve bank clearance, SARS clearance and then finding a global online trading broker. I have heard a few sites mentioned here before that do this online, but cannot remember them.

[Werner_1]

thanks, i will email both Reserve Bank and SARS. I just wanted to know if SBK or any of the local SA banks could execute the trade, getting clearance will not b a problem...

[Ninja]

Werner, you will need to open an account with a company like IDEALCFDS, get clearance from the receiver and transfer cash to a UK based account eg: Loyds......you will then be able to trade yankee shares or currency.

[Werner_1]

Thanks Ninja. I am in discussion with Chase in USA, they did say that SA is restricted but will see what i can organise...

[AJT]

I would suggest getting your SARS tax clearance (think the limit is still 2 mil max), open an account with a "respected bank", if one exists these days, transfer the money to that bank account, then open an E-Trade account and from there you will be free to trade. Not sure if this is the best, or most cost effective route, but it is the one I would follow at this stage....

[SimonPB]

why is everybody so keen to rush off shore to the US ?? their economy is whacked with earnings way way way down and shares not reflecting those earnings drop .. is earnings double 4 times, there is still a crazy PE around 15x ..

[#10]

I know PSG online used to have a platform from where you could trade international equity markets (as well as CFD's etc) and if I remember correctly, with a lot less admin than trying to do this yourself through a foreign broker. Maybe consider finding out whether they stil do this --> www.psgonline.co.za

[kwagga]

I have to agree with Simon on this one. Why would you expose yourself to high risk and low returns in the US. There is more than enough to choose from in SA. The chances are that you'll be buying a share of which 40c to the $ belongs to China anyway. Their economy is a small leak on a big ship in a sea of dept. It's just a question of time before it sinks. It's actually quite humorous too see either Obama or Geithner visit either Russia or China shortly before each treasury auction in the US. Something is gonna give some time soon.

[richardw]

I think foreign exposure is a great idea. I'd wait, though - better opportunities to come. I'd also buy companies that make their money internationally. One possibility: their currency is quite likely to tank sooner or later and that should have the effect of making them more competitive, positioning some companies very well.

[SimonPB]

you see I think foreign exposure is a nonsense idea sold to the masses by financial advisors who know little but are convined that rand weakness is a given and the rest of the world is better .. tell that to people who went off shore at R13.60/US$ in 2001/2002 .. further one can get foreign exposure by buying AGL or RCH or SAB or etc ..

[Werner_1]

Richard, that was my idea, I am not interested in investing in the US market in general, very very specific companies only, only 1 on my list... People might think i am nuts, but i really like JPMorganChase & Co. thats the only company i am interested in now.

[richardw]

Mindless foreign exposure for its own sake yes, same as broad exposure didn't help anyone in this last crash. But being able to select good companies in other countries just gives you more options. You've read Ken Fisher's stuff - most of the companies he suggests in his Forbes column are international.

[kwagga]

Yes, you're right I think you completely off your rocker, but if you know something no one else knows, which is highly unlikely, then be my guest. I'd rather invest in a ton of pig manure than in any financial institution in the US. At least my grass will grow and the smell will subside over time. With JPMorgan, Goldman Sachs and Merrill Lynch a.k.a Bank of America or any other blood sucking parasitic company that feeds of the blood, sweat and tears of the US public the smell will never subsides and the only thing growing will be weeds. .

[#17]

This might be late, but I think PSG offers investment in foreign shares, priced in ZAR (much like Itrix). This means no exchange control. Just check on their website. (might be PSG Konsult even)

[Werner_1]

What is your views on the SA banks?

[kwagga]

Banks in SA is a much safer bet, but if you really want to buy a financial institution with a 100% monopoly, and massive barriers to entry for potential competitors buy -JSE shares. Well run company moving in its own space and the fact that regular dividends is a small ROI for all the trading fees you've had to pay them over the years is a bit of a consolation as well. Top of my list of banks is SBK. Top of my list of investment companies in banks is REM which owns large chunks of RMB and FSB.

[kwagga]

sorry that is FSR and not FSB