I am also looking. Zerodha is the best. Interactive Brokers does not come close. It is difficult to find anything we want in interactive brokers
I think Zerodha has no equivalent WW.
At least smallcase type⌠any one found
Advance Thank you
You have a clear set of objectives. The real tech leaders and the disruptive companies are listed in US so you have an opportunity of taking exposures to them. Compliments !
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IND Money app or website is good for US stocks
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Thanks, @rkirana, for starting this thread. I have a couple of question:
- What made you select IBKR? Did you compare it against other options (like Charles Shwab, Vested)? Iâm asking because Iâm reviewing these platforms for the lowest overall price but reliable name and service
- Does IBKR gives you access to other markets other than the US? If not, which platform would be better for that? (just in case you know)
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Hi,
InteractiveBrokers was recommended by my friend who has been using it for several years. And I could open the account from India
I had considered Vested also. They allow part-ownership of shares but I felt safer with InteractiveBrokers
I had not heard of Charles Schwab. I would suggest InteractiveBrokers as good but only if we plan to keep a total investment of USD 1,00,000 (~INR 70 lakh). Because unknown to me at account opening, they deduct $20 per month if you donât have the investible balance.
So if one plans to invest <INR 70 lakh then Interactive Brokers is not a good option
Thanks
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Disruptive Tech is available in the US and similar quality in other geos is rare to find. This gives some direct exposure to some quality US stocks.
I also considered that these firms give lot of RSUs to their employees, who will otherwise see a fall in compensation if the stock does not give a decent return. In any case, there is no way to own these companies without investing in the US
Thanks Sameer. This is very useful. I have found the screener.in website very useful in India and have my own template.
I really love the Marcellus newsletters and have been creating a way to look at portfolio companies from that lens. I plan to do something similar for my portfolio of stocks and share on this forum.
Screener.in paid membership is very valuable. I will check how pricey wallstreetzen is. I have heard of someone mention gurufocus.com. Have to check the price - because the paid version will allow some templates that allow easy tracking of portfolio companies
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Hi,
IBKR is well known and very safe brokerage firm .
They give you complete acces to all the market .
But there is no minimum balance policy , attleast from europe not sure about account for indian resident .
95% of my money is in MGK (high growth ETF), ARKK (innovation ETF), SCHD (Dividend ETF), the remaining 5% is in stock specific. I highly recommend ETFs in US markets due to low fees and wide choice.
Hi Kiran,
Since a part of your portfolio is interested in high growth, tech firms having a clear monopoly in their respective industry, I would suggest you take a look at Taiwan Semiconductor Corporation ($TSM) listed on Nasdaq.
$TSM has a clear monopoly in semiconductor fabrication at an advanced node (think for latest smartphones/5G/CPUâs/GPUâs/AI processors/Auto chips/et al). A play on $TSM is a play on an increase in global compute demand and a migration from lower performance to higher performance compute (Mobile/CPU upgrades/GPU/servers).
Comp: Samsung, Intel, Global Foundries (@high tech node), Tx Instruments (@higher node).
I will not make a comment on valuation as it is for individual investors to decide. And clearly, you donât mind paying up for monopoly, growth, and tech quality (Nvidia).
Disc: I have worked in the semiconductor industry in various roles.
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No âTeslaâ, or any 'Cryptoâs (if you can invest in cryptos through your broker)?
âTeslaâ- irrational valuation at this point, but earning will explode in 2-3 years time.
âCryptosâ - We may not like cryptos, but there are huge interests among investors all over the world, and considering that we should have some allocation. El Salvador is the first country to make Bitcoin a legal tender. There are thousand Bitcoin ATMs all over the USA.
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Through ibkr you could invest in many markets like japan , hongkong , Europe , Canada and convert your currency from $ to others through the portal itself .
Kiran ,
Good start . I have started investing through ibkr . But I am taking concentrated bets . I only plan on investing 3-5 ideas and take big positions .Right. Now I have taken a position of $40k in alibaba . Anyways good luck .
With respect to investing in Indian markets vs global markets , I donât see of any companies having dominant and sustainable moats available and decent valuations in india . And there is good reason China or other countries in world could recover faster and do good post COVID ,and diversifying your portfolio globally is not bad because you reduce the country specific risk .
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Fully agree with you. Exposure to this basket of stocks in tech + pharma + disruption in US is a huge diversification.
Everyone is worried about brokerage, taxation and exchange fees. But if you donât plan to sell, there is really no cost or taxation worries. A good CA can easily manage this. As long as one pays tax and does nothing illegal, there is nothing to worry about IT department. âBe clean and pay your taxes following the rulesâ
I plan to invest incrementally into this hi-tech space regularly. Kind of like an opportunistic SIP.
I agree that most of these firms are richly valued. Logic is that if you buy a growth company that is richly valued, the mean reversion is on an up-trend line. I am sure at a bare minimum, 10% CAGR can be realized over 5 years. But the kind of stocks in the portfolio, even 4 or 5 becoming 10X is a possibility and that can take the CAGR several notches higher. Big becoming bigger in tech is a reality. 2TT market cap to 10 TT market cap is real.
Regarding valuations, more money is lost in the market waiting for crash than in the crash itself. Amazon was 250 $ in 2014 and looking expensive. It is 3200 $ today in 2021 and still looking expensive. Those that made money are the ones that bought and held on to it. If I had waited 2 days extra to buy the same stocks, I would have had to spend USD 2000 more. That is the thing in the market. Invest when you have money and withdraw only when you need it. So I did a good thing buying 2 days before than later. These growth stocks keep growing. We have to pick and wait for a few years for the value to unlock
Timing market is for traders. For investors it is about identifying good businesses and holding on to them. Of course, let us say some of the portfolio stocks drop by 20% or so, we can do opportunistic SIP in them and double the position. I will time more entries when any of the stocks falls significantly from the purchase price as I believe in these businesses. I will be doing investments into stocks otherwise in equal proportion.
I will anyway post my trades on this thread. So we can all learn together. I am learning as well as this is the first time I have invested directly in US market. I thought I will share my learnings and also learn from others.
Regarding Ibrokers, only pain is the monthly activity fee (maybe it is only for India residents like you mentioned). Hence to avoid the monthly activity fee, we have to have a liquidable value of USD 100K invested at a minimum. Ibroker also lends our stocks when they are in our account to others and we get paid interest on the stocks as well. Now that is a good thing.
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sorry for bothering you but can you suggest a few US etfâs and mutual funds listed in India?
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Rkirana, happy investing in the worldâs biggest market. Currency is definitely expected to be on your side. Taxation should not be a worry as you are already in a tax-paying country. Developed market investors look towards Emerging Markets to seek Alpha. If EM investor looks towards DM, objective may be to reduce risk as DMâs long term volatility is expected to be lower relative to EMs. You seem to be an experienced investor, who knows what she is doing. It may not be out of place to share here an extract from Mr. Damodaranâs article; from Feb 14 to Nov 1, 2020, Six companies ( Fb, Amazon, Apple, Netflix, Google, and Microsoft) gained 1.3tln at the same time, all other US Companies lost 1.3tln. If you remove these 6 companies out of the equation, imagine what would happen to the upsideđ
All good set of names , canât argue. However, feel there is expansion you could explore in pharma and financials to types of companies one never sees in India , like profitable scaled insurance businesses , asset managers , and biotech services cos, equipment / CRO etc that are all good value plays for their market / growth too.
That is if you do not want to do the high growth kind of cos that are plentiful there at all (though I really think one should take advantage of those as they are the most inaccessible for Indian investors right now). US value play can add diversification to a value strategy, by allowing you wider choice to pick cos more stringently. Can also permit taking some more risk.
MOSL NASDAQ ETF is a good option.
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Curious what kind of interest you get. Iâm on TDA and donât get any interest. I didnât go with IBKR because of activity fee but since my account would possibly grow to >100k, Iâm considering them.
Because Indian market has better opportunity for commodity plays than for innovative companies. I like consumption cos from India but they have become too expensive.
If you check the Nifty index, it was below 2007 highs till last year in USD terms. Last 5 year Nifty EPS growth is 0. Most Indian market returns have come from currency depreciation.
Other than lack of equity treatment for taxation, not sure why one would not look at US markets.
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