Buying Thai stocks

[Kalorymetr]

Are foreigners allowed to invest into Thai stock market? If yes, what are the requirements

[Nelson52]

Yes

[lockyv7]

4 minutes ago, Nelson52 said:

Yes

+ money 

[ChakaKhan]

1 minute ago, lockyv7 said:

+ money 

And a trip to the fortune teller  ????

[Thaifly88]

11 hours ago, Kalorymetr said:

Are foreigners allowed to invest into Thai stock market? If yes, what are the requirements

Just check whether your stock broker (online broker) allows trades on Thai stock exchange and whether you need a Thai baht cash account with the broker to perform trades.

[Thaifly88]

Just now, Thaifly88 said:

Just check whether your stock broker (online broker) allows trades on Thai stock exchange and whether you need a Thai baht cash account with the broker to perform trades.

Alternatively buy a Thai ETF that will give you a basket of Thai stocks if you are particularly keen on Thailand as a place to invest.

[dlclark97]

Why would you want to?  Several brokers here favor 'off shore' investing with their clients funds.  I have looked at the SET and some stock holdings but have not been impressed with the ease of getting any long term historical financial information on the various companies.

[rwill]

Stock exchange of Thailand foriegn investor handbook:

SET-Handbook-2019-LO2.indd

 

On page 7 it discusses shares that foreigners are not eligible to receive dividends from,  local shares.

 

 

 

[Oxx]

18 minutes ago, rwill said:

On page 7 it discusses shares that foreigners are not eligible to receive dividends from,  local shares.

 

Foreigners are expected to buy NVDRs (non-voting depositary receipts).  Basically the xenophobic Thai authorities don't want to risk foreigners having control of Thai companies, so they are strongly discouraged from buying shares (no dividends, no voting rights) and a channelled into buying NVDRs which are effectively the same as shares, but without the voting rights.

[HKmike88]

The easiest way to access the Thai securities market, is via a mutual fund or a Unit Trust.

There are many international investment firms which have a Thai Fund. Just Google Thai Funds.

They are usually priced in USD and the price per unit will fluctuate not only in line with the underlying portfolio of Thai securities, but also as the Thai baht rises and falls.

[Airalee]

1 hour ago, Oxx said:

 

Foreigners are expected to buy NVDRs (non-voting depositary receipts).  Basically the xenophobic Thai authorities don't want to risk foreigners having control of Thai companies, so they are strongly discouraged from buying shares (no dividends, no voting rights) and a channelled into buying NVDRs which are effectively the same as shares, but without the voting rights.

Interesting to know that....thanks.  On the flipside...can we short Thai stocks via put options?

[nofarang]

Foreigners can buy Thai stocks in the Thai market. Need to have a Thai bank account. Can buy NVDRs (non-voting depositary receipts) only. NVDRs are elligible for dividends; no voting rights. Price gains are tax-free. Tax on dividends 10%. Try this broker: SBI Thai Online, Commission: 0,075 %. Very helpful and easy to use online trading tool.

[Kalorymetr]

Thanks for replies.

Can I open brokerage account in my bank(SCB)? I am not sure how it works here or in other countries, but in my country its just few clicks on the mobile banking app and you are trading stocks.

How do I handle tax then? I understand that I don't pay tax on any gains, but is it instant or do I have to keep the stocks for some time? Also I should probably include every transaction in the tax report anyways, even if the tax is 0.

 

And for the answer on why, I just think its better to keep my money in the stock market than bank account, I work here and don't want to be moving the money offshore and explaining to my government that its legal money. I might also invest in NASDAQ or London stock exchange if thats allowed here and not too expensive.

 

 

[khunPer]

17 hours ago, Kalorymetr said:

Are foreigners allowed to invest into Thai stock market? If yes, what are the requirements

Yes and it's fairly easy, either through a broker, or with a bank's online platform, if you have a Thai bank account. You need to give passport information, and might be asked for a little comprehensive questionnaire about whitewashing and investor experience.

 

As foreigners can only own up to 49 percent of a Thai company, some major companies have NVDR-stocks available, where you have all rights as as normal shareholder, including payout of dividends, but no rights to vote. For a small shareholder, like most private foreign investors are, it doesn't mean anything to loose the voting right. Online platforms will normally have the NVDR-option default marked.

 

If you wish to buy into companies without the NVDR-option you should buy the "-F" code, which is the lot allowed to be owned by foreigners. That code is priced separately, so in some cases the price can be little different from the normal share-price, depending of the demand; i.e. in a company with only few registered foreign shareholders the buy/sell market can be (very) small.

 

If buying shares without NVDR-option or "-F"-code you will not receive dividend; however, you might be able to have stocks transferred to the foreign "-F"-lot. If you are day trader, or look for short term ownership and capital gain, the lack of dividend might not matter much to you, whilst the size of the trade market is more important.

[Kalorymetr]

What is the liquidity on the NVDR-options compared to the regular ones?

[khunPer]

10 minutes ago, Kalorymetr said:

Can I open brokerage account in my bank(SCB)?

It's very easy, go to this page "SCB-online" HERE, and click on "New Client" and follow the instructions on the screen.

 

If you already have Internet banking via SCBeasy, you can open a trading account from there. More info HERE.

????

[Estrada]

I have had a brokerage account with Maybank Kim Eng for the last 24 years. Shares are NVDR so only difference is that you have no voting rights of rights to attend share holder's meetings (who would want to?) Divs and free shares, warrants etc are handled by Thai Depository. I have a Bangkok Bank Account, as does Maybank Kim Eng. If I want to withdraw cash I can get it the same day if I apply before 11 A.M. Interest on cash balances is added on a daily basis (unlike if I kept the free cash in the bank) and shown at the end of each month less tax. I have an online account and trade myself, so the brokerage fee is low. As I recall, Maybank allow you to invest on the New York exchanges as they have a branch their. Bangkok Bank and most major Thai banks have trading accounts also. There is a 10% withholding tax on dividends which you can claim back if you submit a tax return.

 

 

[peterpop]

On 1/1/2021 at 3:04 PM, Kalorymetr said:

Thanks for replies.

Can I open brokerage account in my bank(SCB)? I am not sure how it works here or in other countries, but in my country its just few clicks on the mobile banking app and you are trading stocks.

How do I handle tax then? I understand that I don't pay tax on any gains, but is it instant or do I have to keep the stocks for some time? Also I should probably include every transaction in the tax report anyways, even if the tax is 0.

 

And for the answer on why, I just think its better to keep my money in the stock market than bank account, I work here and don't want to be moving the money offshore and explaining to my government that its legal money. I might also invest in NASDAQ or London stock exchange if thats allowed here and not too expensive.

 

 

Don't be put off by the ''opinions'' here.  I have been investing in the SET reasonably successfully for 11 years.  Tisco Securities have a very good website and service.  There are some decent financial blogs in English.  The market is difficult to read and without doubt there are some dodgy companies about .  Nevertheless it is fun, and money is being made.

[OneZero]

17 hours ago, peterpop said:

Don't be put off by the ''opinions'' here.  I have been investing in the SET reasonably successfully for 11 years.  Tisco Securities have a very good website and service.  There are some decent financial blogs in English.  The market is difficult to read and without doubt there are some dodgy companies about .  Nevertheless it is fun, and money is being made.

Agree - there is money to be made if you are careful & do due diligence because there are indeed some dodgy companies (owners rewarding themselves first at company expanse for example).