[Notice: Please be advised that there are some US brokers who offer zero-commission trading now.]
(Updated: 4 September 2019)
I have received an email from this platform which has clarified some points in this article. Thus, I am going to share the information with this update.
ToledoTrade (Link) is an online broker that I came across when I was looking for a platform to invest in foreign stocks, mainly in the US market. The products that I am really interested in are the exchange traded funds (ETFs). This relatively new online broker (just launched in 2019) is a division of Gar Wood Securities, LLC in Ohio Illinois, US.
Remarks: The company is actually located in Illinois, instead of Ohio.
Benefit of ToledoTrade
The main advantage of ToledoTrade is its low trading commission. Its commission is $1.95 minimum per trade, which I believe is the lowest that I have seen (excluding those platforms that do not charge commission but have a withdrawal fee). Nonetheless, there are certain terms and conditions for this low commission rate stated on its website ($2500 account minimum). These terms were not displayed during the application process.
I have completed a trade and the commission is really $1.95, regardless of account balance.
Remarks: There is no account minimum for the $1.95 commission rate. ToledoTrade has updated its homepage with the correct information.
Types of commission plan
ToledoTrade offers two commission plans: Standard or Trade at Cost. The Trade at Cost plan has an even lower commission rate ($0.35 minimum per trade) and more benefits but it requires a minimum of $30,000 for margin account or $50,000 for cash account.
Registration
The registration process is easy. You will have to validate your email address before you can proceed with the application. After that, just fill in the required details. Mobile phone number is required for the application. Registration finishes with fund transfer. Four days after I signed up, I received an email asking for proof of identity and address. This came after I initiated my fund transfer. I am not sure whether the fund transfer triggered this or it will come after four days no matter what.
Fund transfer
There are a few ways for fund transfer but I think the easiest way for Malaysians is wire transfer. When we choose wire transfer, the platform will give us the information to initiate the transfer. We have the options of a few currencies but I would suggest USD. Do note that there are bank charges and transaction fee. The fund is transferred to Interactive Brokers account, so I guess ToledoTrade is collaborating with Interactive Brokers.
Remarks: Interactive Brokers (IB) is its clearing firm and all client accounts are serviced by ToledoTrade. Unlike IB, there is no $10 monthly inactivity fees.
Conclusion
Is this platform safe? I am not too sure. The whole registration process took about two weeks for me. I will update again once I have more firsthand experience of this platform.
Remarks: As for the safety issue, ToledoTrade uses 256 bit encryption. ToledoTrade and Gar Wood Securities LLC are registered as US Broker dealers with FINRA. Furthermore, they offer SIPC insurance (Link) which protects against loss of cash and securities of up to $500,000 (up to $250,000 limit for cash). Thus, I suppose that ToledoTrade can be considered as safe.
Referral link
Below is my referral link for ToledoTrade. If you open an account through this link, I might get $50 if you fund your account with at least $10,000. Otherwise, you can always search for ToledoTrade with Google and register yourself.
ToledoTrade : Link here
[Notice: Please be advised that there are some US brokers who offer zero-commission trading now.]
Comments
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Hi Leckas,
I had just opened a Toledo Trade account and would like to fund my account using Public Bank online Foreign Telegraphic Transfer. May I know for Broad Purpose of Remittance, which one should I select:
– DEBT/EQUITY SECURITIES/PORTFOLIO INVESTMENT
– INCOME AND INTEREST
– OTHER INVESTMENTS
I hope to start my US stock trading soon. Would appreciate if you could advise. Thank you!
Author
Hi, Samuel.
I think you can select DEBT/EQUITY SECURITIES/PORTFOLIO INVESTMENT. However, I do not have a Public Bank account, so I am basing my answer solely on the purpose of this transfer. Would you let me know if your transfer is successful later?
By the way, have you considered the other foreign brokers like TDAmeritrade or Firstrade which offer zero-commission but has a withdrawal fee? But if you have considered them and prefer TodedoTrade, it is okay as ToledoTrade is quite reliable too.
Hope my answer helps and wish you well in your trading.
Hi Leckas,
Thank you very much for your quick reply. I selected DEBT/EQUITY SECURITIES/PORTFOLIO INVESTMENT and it continued to the next selection,
Purpose of Remittance, which one should I select:
– Corporate Stocks And Shares Issued By Non-Residents in International Markets
– Corporate Stocks And Shares Issued By Residents in International Markets
I would gladly let you know if my transfer is successful so that others using Public Bank can refer. I wonder if other banks do ask the same questions for purpose of remittance.
Actually I opened an account with Firstrade first when I saw your post earlier but my passport was expired so my account was not approved. As I won’t be going to renew my passport soon so I tried Toledo Trade and was approved! I do prefer zero-commission and have no problem with withdrawal fee as I think I won’t be withdrawing often. But the most important thing is zero inactivity fees as I’m still learning and won’t be trading a lot. Would really appreciate your advise. Thank you!
Author
Samuel,
I think you should choose “Corporate Stocks And Shares Issued By Non-Residents in International Markets”. I had transferred fund with Maybank and Alliance Bank to ToledoTrade before and they do ask about the purpose of remittance due to the requirement by Bank Negara but their questions were not so detailed.
Since you would not be trading a lot, I think ToledoTrade should be fine too. Do update us regarding your fund transfer.
Thanks.
Leckas,
I will update you if the transfer is successful. Really appreciate your help! Thank you!
Author
No problem. Hope it goes well.
Hi Leckas,
Just like to inform you that the fund transfer from Public Bank was not successful. After initiating the transfer online about a week ago, the HQ rejected my transfer because the documents that I submitted were not complete. The bank required documents to prove that ToledoTrade is legal and prove that the account belongs to me. Think I might need to open another bank account just to transfer the fund! Which bank would you suggest?
Author
Hi, Samuel.
It seems like Public Bank is really strict. I am currently using Alliance Bank. Perhaps you can refer to this article (Link). I have not encountered any problem yet but I did not transfer fund recently. Hopefully they have not made their process stricter.
Hi Leckas,
Using Public Bank for foreign fund transfer is a waste of time. Will try Alliance Bank. I’m really grateful that you are here to help because I really do not know who to ask! Thank you!
Author
Hi, Samuel.
But it is good to know that 1 option (Public Bank) is out of the picture. Hopefully Alliance Bank will work for you. I did not help much actually. I believe you would find a way in the end if you explore more. Thanks for reading this blog too.
Hi Leckas,
Thank you so much for taking the time to share your knowledge. I’m still a newbie so reading your blog is very helpful!
Author
Hi, Samuel.
It is my pleasure. Let’s learn from each other and hope to see you around often.
Hi Leckas,
I’m glad to inform you that I managed to open an account with Alliance Bank after some trouble. May I know is there any maximum amount for foreign fund transfer with Alliance Bank? As for Public bank, the maximum amount is RM10k which is around USD2.5k. Any amount above RM10k will have to separate into two transactions! Hoping for your kind reply and thank you very much!
Author
Hi, Samuel.
It is good to hear that. Have you managed to open the Alliance Xchange Account on allianceonline? I think the maximum is also RM 10,000 which is set by the BNM. However, you may contact their customer service for further information. Their response is quite fast, especially the Live Chat (only from 9am to 6pm, Monday to Friday).