Corner of Berkshire & Fairfax Message Board

General Category => General Discussion => Topic started by: matjone on February 09, 2011, 02:49:01 PM

Title: $75 fee for foreign stocks
Post by: matjone on February 09, 2011, 02:49:01 PM
I tried buying some FRFHF and it is saying that there is a possible $75 fee for the order.  The customer support at tradeking said that this is because it is a foreign stock and isn't listed on the major exchanges in the u.s. (I live in the u.s.).  He also said that there was no way for them to know if this fee would be charged or not.  Does anyone know if I will have to pay this fee?  Is there any way for me to buy some fairfax stock without paying it?  I'd like to buy some but I'm not looking to buy enough to make it worthwhile with a $75 fee.  Thanks
Title: Re: $75 fee for foreign stocks
Post by: Myth465 on February 09, 2011, 02:58:18 PM
I think you will. Wells Fargo charges the same fee. I use Thinkorswim for all foreign holdings. They dont charge the fee.
Title: Re: $75 fee for foreign stocks
Post by: Grenville on February 09, 2011, 05:18:04 PM
You can buy FRFHF on Scottrade without the fee
Title: Re: $75 fee for foreign stocks
Post by: ericd1 on February 09, 2011, 05:30:20 PM
No fee at fidelity, schwab, or tdameritrade. It's traded on otc (pk) not a foreign exchange.
Title: Re: $75 fee for foreign stocks
Post by: benhacker on February 09, 2011, 06:38:25 PM
The reason why this comes up is that some brokers reserve the right to execute The OTC "F" foreign shares directly on the (local) exchange.  But that usually is only if you buy a lot... I think at TDA (at least for advisors) it's 50k shares... so maybe Fido has a similar deal and if you do do that, they reserve the right to charge you, but in that case the better execution would be so much better that it would be worth it anyway.

That's my best guess why Fido states the fee, but doesn't really charge it for investors here at least from what's been said.

Ben
Title: Re: $75 fee for foreign stocks
Post by: PLynchJr on February 10, 2011, 05:41:18 AM
I also have an account at Tradeking.  You will be charged the $75 fee based on my experience.
Title: Re: $75 fee for foreign stocks
Post by: Ross812 on February 10, 2011, 07:00:30 AM
Optionshouse.com is my favorite.  There is no fee for foreign stocks, and trading fees are really low.
Title: Re: $75 fee for foreign stocks
Post by: bookie71 on February 10, 2011, 08:46:52 AM
Schwab's fee was $10 but they dropped it to $50.
Title: Re: $75 fee for foreign stocks
Post by: bookie71 on February 10, 2011, 08:47:44 AM
opps, should be 100
Title: Re: $75 fee for foreign stocks
Post by: ValueDan38 on February 10, 2011, 09:58:12 AM
As  ericd1  explained, most US brokers do not charge an extra fee for trading FRFHF.PK since it trades on the US Over-the-
Counter pink sheets, not on a foreign exchange.

Dan
Title: Re: $75 fee for foreign stocks
Post by: matjone on March 24, 2011, 01:56:28 PM
Well I looked through all the brokers that were mentioned on here.  Every one of them said that I would be charged an extra fee in the range of $50-$75 for trading foreign stocks, except for TD ameritrade.  I am thinking about opening an account so that i can avoid the fee for foreign stocks.  Anyone here have anything to say about ameritrade, good or bad?  Thanks,
Title: Re: $75 fee for foreign stocks
Post by: gfp on March 24, 2011, 02:12:54 PM
Why not use Interactive Brokers and just buy FFH in Canada?