Newbie - a question please.. NYSE or LSE?

[GT4456]

Hi there

I am new to trading and have setup an account with Degiro. At the moment I will be dealing in very small amounts maybe 5 shares in a US based company with a total value of about £300. I will be holding on to them for a while. I am based in the UK.

My question is -

• When I search the stock it shows as listed on LSE and NYSE. It is a US based company and I am in the UK. Does it matter which I choose?

Thanks in advance

 

[MasterOfCoin]

Hi there, GT4456 and welcome to t2w

Answer; Yes, it does matter which, as since you are based in the UK, if you choose the NYSE shares, you will pay with-holding tax on any dividends paid and sale proceeds when you dispose of them. Uncle Sam always gets a cut.
Also, unless you have a dollar account, you will be paying for currency conversion both ways ,,,

So, for such modest investments, you'd be much better off with the UK shares.

Hope that helps inform you and have fun trading.

😷

 

[GT4456]

Hi there, GT4456 and welcome to t2w

Answer; Yes, it does matter which, as since you are based in the UK, if you choose the NYSE shares, you will pay with-holding tax on any dividends paid and sale proceeds when you dispose of them. Uncle Sam always gets a cut.
Also, unless you have a dollar account, you will be paying for currency conversion both ways ,,,

So, for such modest investments, you'd be much better off with the UK shares.

Hope that helps inform you and have fun trading.

😷

Thank you so much for your help I have searched the internet everywhere for the answer.

Incidentally if I may, my brother is using Plus500 and when looking for the same company and share he is only given the option for the NYSE.

Sorry if it's a silly question but is it the same stock just listed on both platforms? They are both listed in USD anyway regardless of being on the LSE so I willhave a currency exchange fee either way.

Thanks again for your help, much appreciated

 

[MasterOfCoin]

You're welcome.

Access to which stocks can be traded with which brokers varies enormously !
Even if an international broker seems to offer access to the LSE, for instance, that may only be to the FTSE100 listing.
Generally, you get what you pay for and access to the full range of Stocks plus Gilts, Bonds, Commodities and Futures will only be offered by well established brokers charging more for the better service.

2nd part of answer after

😷

 

[MasterOfCoin]

Continued..

Many, many unrelated companies have similar sounding names and many companies trade under multiple names from multiple locations.
The way to avoid confusion is to check the unique EPIC assigned to the stock. Suggest you establish that you and your brother are both searching for the same stock by this short symbol, rather than the company name.

For example, the stock of the Hong Kong and Shanghai Banking Corporation trades as shares with EPIC 'HSBA' on the LSE.


😷

 

[GT4456]

@MasterOfCoin

I see thank you! I checked and when I type in the NYSE code the LSE equivalent also shows up. They also have identical 12 digit stock number both starting with US. (sorry if that's not the right term?)

The platform I am using doesn't allow after hours trading. The price I am seeing at the moment I would be happy to buy at but I have a feeling that tomorrow the price will jump by the time the markets open. I don't know whether you would give an opinion but if you would, would you put a limit/market order through now to happen automatically tomorrow (or not depending on the criteria you filled in) or would you just wait for the market to open tomorrow and make a live decision from the live information?

Thank you so much again for your help.!

 

[MasterOfCoin]

..... or would you just wait for the market to open tomorrow and make a live decision from the live information?

Given the volatility of the markets at present, I'd wait and make live decision.

Note that that is a purely personal opinion on the question, based on how fast things can change at the moment.

We'll have a better idea of overall market sentiment in a few hours when the the main Asian markets open for the week.

😷

 

[GT4456]

Given the volatility of the markets at present, I'd wait and make live decision.

Note that that is a purely personal opinion on the question, based on how fast things can change at the moment.

We'll have a better idea of overall market sentiment in a few hours when the the main Asian markets open for the week.

😷

@MasterOfCoin

Thank you! no absolutely I appreciate another opinion other than my own rather uneducated one! I'll wait until open time. Thanks again your help has been invaluble