Random RCBO Trip...What Next?

[Luang]

I've been looking into the possibilities of investing a small lump sum and monthly savings into these (though I would probably invest/buy quarterly to lower fee costs). This is obviously a long-term (15-20yrs) strategy. I'm talking low cost IF's - NOT managed funds- with a diversified portfolio of stocks and bonds.

I was looking at opening a brokerage account at DBS Vickers in SG (no capital gains tax) or Standard Chartered, but it appears they now have some sort of investment knowledge test as part of the application. As a novice this would probably prove to be a bit of a stumbling block.

Any of you experts have any words of wisdom?

Thanks in advance.

Luang

[JSixpack]

Is this topic Thailand related at all?

Edited October 1, 2013 by JSixpack

[oogster8]

A guy has a good idea and he is disrespected. Op is Thai-is that good enough?

[Orac]

I emailed International Brokers trying to do the same thing but they also wanted some trading experience. Going through the process of applying for Charles Scwab International account now and am waiting for approval.

[paddyjenkins]

Im very tempted to be rude about people without the common sense to say "yes, i have experience" to the brokers. But i don't think it would be constructive.

I suggest opening a US brokerage such as ETrade or Ameritrade (TD Waterhouse now?) or Charles Schwab. There should be no problem for foreign residents or citizens and non-US persons will only be charged withholding tax on dividends and interest (30% and I don't know how to get around that annoyance), i.e., no capital gains tax, as long as your W8-BEN form is kept uptodate.

Their services and commissions are much cheaper than the ones mentioned. I can't think fo a single "Asian" brokerage that doesn't have outrageously high commissions so unless you need access to single stocks on local exchanges, as opposed to the ETF's, just go for a US brokerage and forget about these local, overpriced cowboy outfits. If I am wrong about the local brokerages then I would love to know.

And before you say it, yes, they have ETF's covering international markets...there are ETF's for everything these days, every country, every segment, whatever you want.

If you insist on a non-US broker then even Saxobank would offer better value and services than the ones you mentioned and they would offer a very wide range of instruments, the vast majority of which I would suggest you do not get involved with.

[Luang]

Im very tempted to be rude about people without the common sense to say "yes, i have experience" to the brokers. But i don't think it would be constructive.

I suggest opening a US brokerage such as ETrade or Ameritrade (TD Waterhouse now?) or Charles Schwab. There should be no problem for foreign residents or citizens and non-US persons will only be charged withholding tax on dividends and interest (30% and I don't know how to get around that annoyance), i.e., no capital gains tax, as long as your W8-BEN form is kept uptodate.

Their services and commissions are much cheaper than the ones mentioned. I can't think fo a single "Asian" brokerage that doesn't have outrageously high commissions so unless you need access to single stocks on local exchanges, as opposed to the ETF's, just go for a US brokerage and forget about these local, overpriced cowboy outfits. If I am wrong about the local brokerages then I would love to know.

And before you say it, yes, they have ETF's covering international markets...there are ETF's for everything these days, every country, every segment, whatever you want.

If you insist on a non-US broker then even Saxobank would offer better value and services than the ones you mentioned and they would offer a very wide range of instruments, the vast majority of which I would suggest you do not get involved with.

Paddy,

Thanks for your input.

Regarding lying about exp. then as far as I'm aware it's not that simple with the companies I mentioned. You need to give concrete evidence. Also, is there really any reason to feel the need to be rude to people you've never even met?! You would have come across much better if you's omitted that bit.

The SG brokers mentioned charge $25 for purchases and sales below $40,000 - which seems reasonable to me. Just make sure you invest $3000 ish every time and should be good. For small amounts do it quarterly or twice a year.

I thought non-US could not use US online brokers?

Thanks

[paddyjenkins]

Im very tempted to be rude about people without the common sense to say "yes, i have experience" to the brokers. But i don't think it would be constructive.

I suggest opening a US brokerage such as ETrade or Ameritrade (TD Waterhouse now?) or Charles Schwab. There should be no problem for foreign residents or citizens and non-US persons will only be charged withholding tax on dividends and interest (30% and I don't know how to get around that annoyance), i.e., no capital gains tax, as long as your W8-BEN form is kept uptodate.

Their services and commissions are much cheaper than the ones mentioned. I can't think fo a single "Asian" brokerage that doesn't have outrageously high commissions so unless you need access to single stocks on local exchanges, as opposed to the ETF's, just go for a US brokerage and forget about these local, overpriced cowboy outfits. If I am wrong about the local brokerages then I would love to know.

And before you say it, yes, they have ETF's covering international markets...there are ETF's for everything these days, every country, every segment, whatever you want.

If you insist on a non-US broker then even Saxobank would offer better value and services than the ones you mentioned and they would offer a very wide range of instruments, the vast majority of which I would suggest you do not get involved with.

Paddy,

Thanks for your input.

Regarding lying about exp. then as far as I'm aware it's not that simple with the companies I mentioned. You need to give concrete evidence. Also, is there really any reason to feel the need to be rude to people you've never even met?! You would have come across much better if you's omitted that bit.

The SG brokers mentioned charge $25 for purchases and sales below $40,000 - which seems reasonable to me. Just make sure you invest $3000 ish every time and should be good. For small amounts do it quarterly or twice a year.

I thought non-US could not use US online brokers?

Thanks

Regarding commissions, $25 is much higher than the US brokers I mentioned, but if the trading is infrequent maybe it isn't critical. I think they also add some other fees by the way.

If the amount invested is just $3000 then a $25 commission will be nearly 1%. Adding the bid/ask spread means quite a large % costs as far as I am concerned. If on the other hand the amount invested was $30,000 then the charge will be relatively smaller. If it is $300,000 then it becomes negligible, but why waste the money?

I am sure a non-US citizen can open accounts at US brokers. I am a non-US citizen and I have US accounts. I think I pay just a couple of dollars to trade US stocks in sizes of even 100k. Tiny.

Saxobank is somewhat cheaper than the SG brokers mentioned, they will be worth investigating. I do have Singaporean and also Saxo accounts, but I use them only for Singapore listed stocks that I can't access otherwise and Saxo is the cheapest and the best of them. Still bad compared to my US accounts.

As for experience, how can they possibly demand concrete experience? That doesn't make sense.

[Orac]

The Charles Schwab International account is specifically designed for non-US residents. The process for opening is fairly straight forward with everything on their website and responses have been quick so far. Because I can't provide a utility bill showing my address here I have had to get a bank gaurantee letter from SCB which took a bit of effort - they were very reluctant to put my address on it and it took a couple of attempts. The letter is in Thai script which Charles Scwab translate in house rather than requiring a translation and, once done, they will call SCB to verify details. Minimum opening balance is $10,000 and trading cost is $8.95 for most transactions though higher on foreign exchanges. Also no charge for certain ETFs (mainly their own funds).

[Luang]

Thanks some useful tips here guys.

I've also heard about TD Direct Investing International, Luxembourg. Offshore banking for expats. I believe you can open account online. (Also TD Waterhouse group, right?)

Would this be more do-able for a European, than above mentioned US accounts?

[Orac]

Thanks some useful tips here guys.

I've also heard about TD Direct Investing International, Luxembourg. Offshore banking for expats. I believe you can open account online. (Also TD Waterhouse group, right?)

Would this be more do-able for a European, than above mentioned US accounts?

It looks easier to open if you have a EU/UK bank account to make the initial fund transfer from - just the application and copy of passport with no proof of residence address in Thailand by the looks of it. The transaction fees look very high though.

[William Osborne]

Thanks some useful tips here guys.

I've also heard about TD Direct Investing International, Luxembourg. Offshore banking for expats. I believe you can open account online. (Also TD Waterhouse group, right?)

Would this be more do-able for a European, than above mentioned US accounts?

I have an acc with these guys (formally known as Internaxx).... i opened with them about 5 years ago which was pretty straight forward from what I can remember.... the fees are not the cheapest but for longterm investing they're ok.... I normally buy/sell with with 3k minimum of what ever currency i'm using

I use it primarily to buy stocks but you can purchase ETFs and Mutual funds as well.