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[padeakin]

The shares dealing broker that I use (KTZMICO), just requested that I sign a form giving them power of attorney on my account, it basically gives them the right to buy, sell and transfer funds on my behalf. They said that if I do not sign it, they will charge and extra 200 Baht each time. I do not know what 'each time' means exactly, I have asked them to clarify that.

They must be able to process my trades without this as I have been using them fro a few years now.

Has anyone here given a broker power of attorney on your account?

Any comments? Is this normal practise?

Can anyone recommend a broker that does not require this?

POWER OF ATTORNEY - to KYZMICO - 6 NOV 2013.pdf

[wordchild]

I use a couple of Thai brokers and have never been asked for this and would certainly not give one if asked.

Is this a leveraged account? It would make some sense if it was.

I would guess they would argue they need this to act on your behalf in a situation where they cannot get hold of you and, in any event, you have the protection of the SEC (their regulator).

If its 200bt per trade then its a bit of a non issue unless you trade a great deal.

Edited December 23, 2013 by wordchild

[NeverSure]

No. This gives them the ability to "churn" your account for more commissions until you have nothing left.

I'd be changing brokers.

[SheungWan]

I'd be worrying if there was any problem extracting my funds.

[padeakin]

Thanks for the comments.

No this is not a leverage account.

I certainly will not be signing the form giving Power of attorney.

The extra 200 Baht is not really an issue if it is on each trade, but it could be on each transaction, including dividend receipts, funding, withdrawals etc, I have yet to receive a response to my questions about this.

I am just considering changing broker because I am not happy that they (KTZMICO) have even asked for this, and they said if I do not sign the form before 31st Jan I will start to get extra charges, then they have not responded to my request for clarification in a timely manner, It is a shame because I was very pleased with them until now.

[SantiSuk]

It means you are giving them discretionary powers to buy and sell without consulting you (but it should be within a general outline of objectives that you agree with them). If you want such a discretionary advice service then something similar to a power of attorney will always need to be given.

If you want them to advise on buy/sell but consult you before transacting that is a non-discretionary advisory service and you need to tell them that's what you want.

Just to complete the picture an execution-only service is where you make all decisions and they give no advice. All they do is execute orders that you put in