Commonwealth Securities Limited

International Shares

Announcement: New Applications for Trusts currently unavailable

Currently CommSec are not accepting new applications for International Securities Trading Accounts and US ETO Accounts submitted by Trustees in the name of Trusts, this position is under review. Individuals and companies can still apply.

If you have any queries, please contact our International Equities desk on 1300 361 170 (24 hours US trading days).

Trade on over 30 leading global share markets

Although the Australian share market offers some excellent investment opportunities, it makes up less than 2% of the world’s total by market capitalisation. So if you’re only investing in Australian shares, you’re missing out on the investment potential of the other 98%.

Now it’s easy to invest globally, with a CommSec International trading account. As a CommSec International client, you can trade on over 30 leading global share markets, including the New York Stock Exchange, NASDAQ, the London Stock Exchange and the Tokyo Stock Exchange.

Why trade on international markets?

Features	Benefits
Diversification	Diversification is a key element of any successful investment strategy. With International trading, you can access sectors not available in Australia, such as aerospace or technology. International trading also allows you to invest in businesses and brands you know, including Kraft, Apple, Google and many others.
Exchange Traded Funds	Exchange Traded Funds (ETFs; provide low cost access to a range of products from sectors, commodities or government bonds.
Options	Trade in the largest Options market in the world, with longer expiry dates and higher liquidity than is available in the Australian market.
Employee shares	Sell employee shares or invest in shares of your overseas employer.

Investment view	Sector	Country	Major Stocks
Increased personal computer usage in China and India	Technology	USA	Microsoft Intel Dell Computer Apple
3D televisions will become a must have item	Technology	Japan	Sony Corporation NEC
Electric and hybrid cars will be the next automotive revolution	Automotive	America/Japan	Tesla Motors Toyota
Development of the BRIC economies will lead to increased demand for commercial aviation	Aerospace	USA/France	Boeing EADS (Airbus)

Products

With a CommSec International Trading account, it's not just shares that you can invest in. You'll also have access to other investment products such as Exchanged Traded Funds (ETFs) and Options.

Exchange Traded Funds (ETFs)

Exchange Traded Funds are one of the fastest growing investment products in the US, as they offer easy, cost-effective access to the performance of a basket of securities. In Australia the ETF market is still developing, but in America there are already over 800 ETFs, across a wide range of equities, indices, commodities and debt instruments.

The article below from the New York Stock Exchange contains useful information about ETFs and how they work and is recommended reading before you consider trading ETFs.

Download the ETFs information pack

Options

CommSec International offers Options trading in the US markets. It’s important that you have a sound understanding of Exchange Traded Options before you consider trading Options overseas.

The US Options market works differently to the Australian market, so we strongly recommend that you check details with the specific Options exchange before you place an order. We have created a summary of the key differences below.

Features	Australian Shares	US Shares
Contract size	100 (generally)	100 (generally)
Stock option expiry	Thursday before last business day of the month^	Saturday following 3rd Friday of expiry month
Contract fee	AUD $0.143 incl GST per contract (open or close)	USD$1.10 per contract
Long-term Options available	Yes. Limited liquidity due to unpredictability of dividends	Yes. Often higher liquidity as dividend levels are lower in America (generally)
Auto exercise in-the-money options	Yes	Generally, if in the money by at least 5 cents
Settlement of contract	Deliverable	Deliverable
Features	Australian Index	US Index
Index multiplier	$10 per point	Exercise price of the option multiplied by a dollar value, usually US$100.
Stock option expiry	3rd Thursday of the month^	Saturday following 3rd Friday of expiry month
Contract fee	AUD $0.45 ex GST per contract (open or close)	USD$1.10 per contract
Long-term Options available	Yes	Yes
Auto exercise in-the-money options	Yes	Yes
Settlement of contract	Cash Settled	Cash Settled

^General dates only. As advised by the ASX. Refer to the ASX Options Expiry Calendar on the ASX Website

Strategies

International Options trades are restricted to 'limited risk' strategies, where the maximum loss is equal to the investment in the trade. CommSec Australian Options allow a wider range of trading strategies. We have summarised the available strategies for international Options trading below:

What you CAN do	What you CANNOT do
Trade stock Options and index Options.	Trade debt Options, foreign currency Options or flexibly structured Options.
Buy Calls and Puts to open.	Write Puts to open.
Write covered Calls (i.e. write Calls over shares you already own).	Write uncovered Calls to open.
Use a combination of the above to create multi-leg strategies, such as long strangles and long straddles	Use strategies involving written Puts and uncovered Calls such as bull and bear spreads.

For more information on trading Options in the US, you can view any of the following links:

CommSec US Exchanged-Traded Options Product Disclosure Statement
COBE - Chicago Board of Options Exchange: A set of Instructor-led classes that walk you through trading Options on the CBOE.
Options Industry Council: Free education, webinars and a variety of calculators to get you started in the US Options market.
NYSE - Options FAQs: Answer to Frequently Asked Questions from investors of all abilities when trading US Options.
Expiry Calendar 2013

Costs

Costs for trading in international markets is shown, below separated into regions.

North America

Market	Brokerage	Special Costs
New York Stock Exchange NASDAQ American Stock Exchange Includes equities, foreign denominated bonds, managed funds and Options	USD$65.00 or 0.75%, whichever is greater¹	USD$1.10 per contract applies to US Option trades.
Canada	USD$65.00 or 0.75%, whichever is greater¹	CAD$0.015 per share

Asia Pacific

Market	Brokerage	Special Costs
Japan	USD$65.00 or 0.75%, whichever is greater^1*	POA
Hong Kong	USD$65.00 or 0.75%, whichever is greater^1*	POA
Indonesia	USD$130.00 or 1.00%, whichever is greater^1*	POA
New Zealand	USD$130.00 or 1.00%, whichever is greater^1*	POA
Philippines	USD$130.00 or 1.00%, whichever is greater^1*	POA
Singapore	USD$130.00 or 1.00%, whichever is greater^1*	POA
Thailand	USD$130.00 or 1.00%, whichever is greater^1*	POA

Europe and Middle East

Market	Brokerage	Special Costs
London Stock Exchange (LSE)	USD$65.00 or 0.75%, whichever is greater^1*	A stamp duty of 50 basis points may apply to buy trades executed on the LSE
Austria	USD$130.00 or 1.00%, whichever is greater^1*	POA
Belgium	USD$130.00 or 1.00%, whichever is greater^1*	POA
Denmark	USD$130.00 or 1.00%, whichever is greater^1*	POA
Finland	USD$130.00 or 1.00%, whichever is greater^1*	POA
France	USD$130.00 or 1.00%, whichever is greater^1*	POA
Germany	USD$130.00 or 1.00%, whichever is greater^1*	POA
Ireland	USD$130.00 or 1.00%, whichever is greater^1*	POA
Israel	USD$130.00 or 1.00%, whichever is greater^1*	POA
Italy	USD$130.00 or 1.00%, whichever is greater^1*	POA
Luxembourg	USD$130.00 or 1.00%, whichever is greater^1*	POA
The Netherlands	USD$130.00 or 1.00%, whichever is greater^1*	POA
Norway	USD$130.00 or 1.00%, whichever is greater^1*	POA
Portugal	USD$130.00 or 1.00%, whichever is greater^1*	POA
Spain	USD$130.00 or 1.00%, whichever is greater^1*	POA
Sweden	USD$130.00 or 1.00%, whichever is greater^1*	POA
Switzerland	USD$130.00 or 1.00%, whichever is greater^1*	POA
Turkey	USD$130.00 or 1.00%, whichever is greater^1*	POA

Fees

Exchange fees and other regulatory fees also apply. Exchange fees may be different for each exchange you trade on.

Fees type	Fees type
Custody fee for inactive accounts²	USD$68.00 per year
Outgoing account transfers to either another custodian or direct registration to client	USD$100 per transfer
Foreign Securities Custody fee	USD$2.00 per non-US holding of security per month, per account
Posted trade confirmation fee	USD$1.80 per trade confirmation

*May be subject to additional local exchange fees

1 For all limit and market orders which are not fully executed in the same trading day, normal brokerage will be charged for the total portion executed per day. Brokerage charges may be converted and applied in the local currency. This may result in variances in the US dollar equivalent brokerage applied.

2 Custody fees are charged to accounts defined as inactive; that is, accounts holding a security position for a calendar year (1 January to 31 December) without generating a trade, or margin interest of USD$100 or more. Systematic reinvestment activity in mutual funds and/or exchange activity in mutual funds will be considered as a trade. However dividend reinvestment activity is not considered as a trade

FAQs

Code	Exchange	Currency	Asset Class	Description	Link to product provider
SPY	NYSE	USD	Equities	S&P 500 Tracker	More information
DIA	NYSE	USD	Equities	Dow Jones Industrial Average	More information
QQQ	NASDAQ	USD	Equities	Track the NASDAQ 100	More information
IWM	NYSE	USD	Equities	Rusell 2000 Index Fund	More information
NYC	NYSE	USD	Equities	NYSE Composite Index fund	More information

Code	Exchange	Currency	Asset Class	Description	Link to product provider
GLD	NYSE	USD	Metal	Tracks price of Gold minus expenses	More information
SLV	NYSE	USD	Metal	Tracks price of Silver minus expenses	More information
USO	NYSE	USD	Energy	United States Oil Fund LP	More information
GSG	NYSE	NYSE	Mix	S&P GSCI (R) Commodity-Indexed Trust	More information

Code	Exchange	Currency	Asset Class	Description	Link to product provider
JNK	NYSE	USD	Bonds	High Yield Debt	More information
BWX	NYSE	USD	Bonds	International Treasury Bond	More information
SHY	NYSE	USD	Bonds	Barclays 1 - 3 Year Treasury Bond Fund	More information

Can I get help completing my application? Where do I send my completed application? Can I fax my application? When will my account be opened? How do I log in to my new Pershing International Trading account? Why can't I access live prices for UK, Canada, Hong Kong or other non-US stocks on the website? What are some examples of US index ETFs? What are some examples of US commodities ETFs? What are some examples of international bond ETFs?

As this content is all hosted and controlled by third parties, CommSec is unable to guarantee the content contained within. At the time of linking to these sites CommSec believes them to be of educational benefit. This may change over time. All responsibility for content remains with the hosting website or institution. CommSec and its related entities do not accept any liability for any loss or damage arising out of the use of the website listed above.

The information on this site has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

You should also read our Financial Services Guide (FSG), which provides you with information about us and services we can provide.

International Shares

Trade on over 30 leading global share markets

Why trade on international markets?

Benefits

International Shares Case Study

Earn by investing in what you know

The scenario

The strategy

The result

Products

Exchange Traded Funds (ETFs)

Options

Strategies

Costs

North America

Asia Pacific

Europe and Middle East

Fees

FAQs

US Broad Index Products ^

Commodities^

^Bond ETFs

Why choose CommSec International Shares?

International Shares

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