We are occasionally asked if OneTRADEx is really offering a discount service to offshore residents and expat investors. Looking at our advertising one person said “Sure trades can be as low as $9.95 but what about the fine print and that 0.75% of trade value?”
There are 18 other Broker/Dealers that are regulated by the Cayman Islands Monetary Authority. You can see the list of regulated brokers on the CIMA website using the following link: bit.ly/1qcFN67 To the best of my knowledge OneTRADEx offers lower rates than all of the others and we are also lower than any of the other offshore brokers we have benchmarked against. If you find lower commissions and fees from a regulated broker in a tax neutral jurisdiction please let us know as we want to know and will do our best to match or beat it. We also don’t charge a custody or account management fee to our clients, that can be 0.5% or more of account value in many cases.
We try not to bury our pricing in fine print, but there are details that do not fit into the headline or graphical ads. At OneTRADEx.com we have attempted to clearly state trades are as low as $9.95 and provide PDF copies of our commission schedule with more details on our Services & Rates page.
By way of an example if you were to trade 500 shares of Coca-Cola (KO@$40.50 today) the commission would be our minimum of $9.95 based on (500shares x $0.0125/share = $6.25 rounded up to $9.95) a trade of 1,000 shares would be $12.50 (1,000shares x $0.0125/share = $12.50). On a percentage basis this represents 0.03% of the trade value ($12.50/$40,500=0.0003).
For other products such as options we think our pricing is just as competitive, investors can execute an option trade on U.S. stocks for a ticket charge of $9.95 and then $1/contract. As an example to purchase 10 Calls on Apple today at a 600 strike for the May 30th expiry would cost $7,519.95, with the commission being only $19.95 or 0.265% of the trade value.
We strongly feel that our offshore trading platform and discount model represents great value to investors. I hope this helps clear up any misunderstanding you may have about our pricing model. We would love to offer you a free demonstration account or help you open up a live trading account if you wish. Please contact us at *protected email* or by using our contact form if you have any questions.