Trading US markets from india

[trade2411]

Hello All,

I am looking to open an account with a US broker so that i can trade mainly commodities ( or all futures ) in US markets. I want to do this as i mainly trade commodities and its best to trade them in US day timings, Is anyone doing it, I need some information as
1) who is the best broker
2) How easy is it to transfer money to and from US
3) I saw Interactive brokers website, but couldnt locate commodities in their section of instruments traded.
4) What is the minimum margin required , and if anyone is aware what are the charges in the US like we have STT , turnover charge in india.

Thanks,

 

[DanPickUp]

Hello All,

I am looking to open an account with a US broker so that i can trade mainly commodities ( or all futures ) in US markets. I want to do this as i mainly trade commodities and its best to trade them in US day timings, Is anyone doing it, I need some information as
1) who is the best broker
2) How easy is it to transfer money to and from US
3) I saw Interactive brokers website, but couldnt locate commodities in their section of instruments traded.
4) What is the minimum margin required , and if anyone is aware what are the charges in the US like we have STT , turnover charge in india.

Thanks,

Dear Trade2411

First off all|: Read a bit in the following thread: http://www.traderji.com/beginners-g...-put-all-your-eggs-one-broker.html#post603487 ,so you know what can happen when working together with only one broker in the USA.

Second: Best Broker???? How do you define a best broker? There is no best broker. You define what you need from a broker (Services, Platforms, Pro or non pro trader, discount broker or full service broker, etc.) and then you choose a broker which fits you. May I ask: How did you find your broker in India?

Here a list of brokers in the USA: http://www.cmegroup.com/tools-information/find-a-broker/broker-directory-na.html and here the link to the NFA (National future association) http://www.nfa.futures.org/

Transferring money: As long as your country allows it, is not on a black list for off shore or money laundering and as long as you not want to transfer millions of USD, it is in general quit easy to do. Fill out the formulas (Opening Account, non US residential and some other papers), show from where you get the money you want to transfer and wait till the application is checked. If every thing is fine, this will take one or two days. The money can only be transferred from an account which is on your name to the brokers account in the States. Otherwise you will get problems and you will have to prove a lot about why you want to transfer money from an other account which is not on your name.

IB offers options and futures.

Commissions: You have to check with your broker what margins he has. You must read in there links what they offer, as you have various ways of how and how much they charge.

Have a good start / DanPickUp

 

[ubertrader]

Hi,
As per my information an Indian national cannot take a leveraged position in a foreign market. This is as per RBI norms for foreign investment and FEMA of $2 lakhs per year. You can only trade in the cash markets of a foreign exchange. Hence forex trading and commodities trading in foreign brokerages is not permitted though plenty of them are advertising in India as they are leveraged positions.

 

[trade2411]

Hi,
As per my information an Indian national cannot take a leveraged position in a foreign market. This is as per RBI norms for foreign investment and FEMA of $2 lakhs per year. You can only trade in the cash markets of a foreign exchange. Hence forex trading and commodities trading in foreign brokerages is not permitted though plenty of them are advertising in India as they are leveraged positions.

Dear ubertrader,

I have heard about what you are saying, But i am not sure if that is totally right. I read in some of the forums/websites that it is permissible to trade derivaties , Also ICICI direct overseas account has the option of trading stock options, I will try to find out more . Thanks for your reply.

 

[trade2411]

Dear Trade2411

First off all|: Read a bit in the following thread: http://www.traderji.com/beginners-g...-put-all-your-eggs-one-broker.html#post603487 ,so you know what can happen when working together with only one broker in the USA.

Second: Best Broker???? How do you define a best broker? There is no best broker. You define what you need from a broker (Services, Platforms, Pro or non pro trader, discount broker or full service broker, etc.) and then you choose a broker which fits you. May I ask: How did you find your broker in India?

Here a list of brokers in the USA: http://www.cmegroup.com/tools-information/find-a-broker/broker-directory-na.html and here the link to the NFA (National future association) http://www.nfa.futures.org/

Transferring money: As long as your country allows it, is not on a black list for off shore or money laundering and as long as you not want to transfer millions of USD, it is in general quit easy to do. Fill out the formulas (Opening Account, non US residential and some other papers), show from where you get the money you want to transfer and wait till the application is checked. If every thing is fine, this will take one or two days. The money can only be transferred from an account which is on your name to the brokers account in the States. Otherwise you will get problems and you will have to prove a lot about why you want to transfer money from an other account which is not on your name.

IB offers options and futures.

Commissions: You have to check with your broker what margins he has. You must read in there links what they offer, as you have various ways of how and how much they charge.

Have a good start / DanPickUp

DanPickUp,

Thanks for your answers. Do you trade both US and Indian markets, If so are you indian citizen ?

 

[DanPickUp]

DanPickUp,

Thanks for your answers. Do you trade both US and Indian markets, If so are you indian citizen ?

No, I am not Indian citizen but I trade US market, but not Indian markets. I did open a few accounts with different brokers in the USA in the past from different places in the world and what I posted was just the experience I had with them in the past. Not included the little problems like margin changes when vola gets very high and so on. Be careful with them, as they sometimes do what ever they want.

 

[trade2411]

Meanwhile, I found this thread. http://www dot traderji.com/derivatives/34698-you-can-trade-international-futures-india-legally-read-how-4.html . Would be certainly helpful. Also go to this page http://www.rbi.org.in/SCRIPTS/BS_FemaNotifications.aspx?Id=155 , Which has list of permissible instruments that can be traded, which lists derivatives

 

[trade2411]

No, I am not Indian citizen but I trade US market, but not Indian markets. I did open a few accounts with different brokers in the USA in the past from different places in the world and what I posted was just the experience I had with them in the past. Not included the little problems like margin changes when vola gets very high and so on. Be careful with them, as they sometimes do what ever they want.

Dan,

From your understanding, which broker provides the lowest brokerage ? I mean if i were to choose someone based only on brokerage and execution not worrying much about trading platform who shoud i choose

 

[DanPickUp]

Hi

I do not know what your trading volume is. Following brokers I recommend and each one of them offers and works in different ways. Read in the links and you will quickly see what you like or what for you is most important. Execution is no problem with them. Brokerages are an individual thing as you may say: Ah, here I like that but I do not have it there, so it does not matter if I pay a bit more and vice versa.

http://advantagefutures.com/open-an-account/commissions/

https://www.mirusfutures.com/open_account/choose_account_type/rosenthal_collins_group

http://optimusfutures.com/index.html

http://www.echotradeonline.com/about_us.php

http://www.globalfutures.com/index.asp?refid=etbroker

Good trading / DanPickUp

 

[trade2411]

Hi

I do not know what your trading volume is. Following brokers I recommend and each one of them offers and works in different ways. Read in the links and you will quickly see what you like or what for you is most important. Execution is no problem with them. Brokerages are an individual thing as you may say: Ah, here I like that but I do not have it there, so it does not matter if I pay a bit more and vice versa.

http://advantagefutures.com/open-an-account/commissions/

https://www.mirusfutures.com/open_account/choose_account_type/rosenthal_collins_group

http://optimusfutures.com/index.html

http://www.echotradeonline.com/about_us.php

http://www.globalfutures.com/index.asp?refid=etbroker

Good trading / DanPickUp

Hi,
Thanks a lot for this