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Ok first I don't work for E*Trade - in fact I moved off E*Trade to Scottrade a couple years back.

This new product looks like it would give us a huge amount more flexibility in the global stocks that we are picking, given that it gives us direct access to all of the world's major markets:

https://us.etrade.com/e/t/welcome/globaltrading?SC=JGGTPET

I'm wondering if Global Gains is ever going to start buying things directly off foreign exchanges - if so this would allow us all to follow along with reasonable commissions...

I'm loathe to move all my money back to E*Trade but I am seriously considering it.

I'd love to hear others' thoughts, especially the GG team's thoughts about trading directly on these exchanges in the (hopefully near) future.

-TK
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Hi TK,

From my limited investigation it appears that e*trade are the only house making a decent effort at bringing together a few of the larger global exchanges at one place. It's incredible really that in this day and age there is no single broker linked to every major stock exchange. No doubt the thought has occurred to the TDAmeritrade’s and Schwab’s of the world, but either demand is low or execution logistics too expensive or complex to implement. We wait in anticipation…

Rgds,

Emmet
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Yeah - I talked to Scottrade and they said it was at least a couple years away. Maybe Citigroup's announcement that US investors should be 55% overseas will prompt some action over the next couple years...

-TK
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TK and Turbo,

I couldn't agree more. I am very surprised that this space has been as under serviced as it has been. Granted, like you mentioned turbo, I think demand to date has been hard to determine. Plus I know there are a number of regulatory issues. I'm sure the current financial meltdown has pushed back that "couple year" time line since investors seem to be running for the hills.

Before that however, it seemed like EM/international markets were getting more media attention with increasing celerity. El-Erian was in two major articles. The Citi announcement you mentioned. Morgan Stanley had a keynote report touting the benefits of EM infrastructure growth. It all seemed like EM were becoming much more mainstream.

By the way - I found a startup company called Emerginvest that is in this space. They don't do trading but claim they cover 120+ stock exchanges. Seems like a pretty cool site I thought I'd share. (http://www.emerginvest.com)

Hopefully the bargains created by the recent crisis abroad will attract more attention, however I have a sinking feeling the domestic issues will completely drown it out. We'll see in time I'm sure.

-Jon
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Have any of you guys used the global trading feature on etrade? I have an account, and have noticed some of the Global Gains recs are available directly. CLP for example can be purchased in HK dollars directly off of the HK market by using an etrade global trading account instead of via pink sheets. Just curious if anyone else is doing this?

Thanks,
Adam
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I just starting looking into this yesterday because I noticed that some of the ADRs that I own have large management fees; this is especially true for low priced stocks because they seem to charge the ADR fee on a per share basis.

I have accounts at Fidelity and at Schwab. Fidelity now has international trading capability and the fees appear to be slightly lower than eTrade's (e.g. HKD250 per trade on the HKSE and 9 pounds on the LSE). Schwab told me that they will be launching the capability next month.

I called Fidelity to ask some questions. Trades are settled in local currencies so if you have dollars then they will convert to purchase the shares. They said that there is about a 1% difference in the exchange rate so switching over back and forth can be costly. However, when a security is sold, one can choose to leave the proceeds in the local currency for future purchases.

The biggest downside that I noticed is that securities held on foreign exchanges are not applied when calculating how much marginpurchasing power is available.

Chris
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