No travel insurance for me !

[FruitPudding]

Hi guys,

 

Anyone have any experience with Monex BOOM stock broker?

 

I can't find any reviews online. Though a couple of guy here mentioned them in a thread before.

 

So, how are they to deal with?

 

Good or bad experiences?

 

I am thinking of opening an account with them because they are one of the few that allow expats.

 

I am looking to trade on the American and Australian markets, mostly.

 

Any insights appreciated!

[bojo]

Sorry, I can't help you, but should you decide not to use Monex, I use Hargreaves and Landsdowne in UK. Can't recommend them enough, so easy to deal with.

regards

[Oxx]

Just an observation, but if you're not a US Person, trading on US markets is not very tax efficient.  It's particularly inefficient from Hong Kong and Singapore.  If using ETFs, identical or similar ETFs are often available on the London Stock Exchange with a much better tax treatment.  The broker concerned doesn't provide access to London.

 

@bojo Hargreaves Lansdown doesn't allow non-residents to open an account.

[wordchild]

I have used them in the past when I lived in HK, basically they are fine for the markets they cover. I now mainly  use OCBC in Singapore who are much better, in my opinion. They are also more expensive however.

[FruitPudding]

Thanks for the suggestions! I am open to others.

 

My main problem is not being able to open an account as a non-resident.

 

 

[wordchild]

I believe saxo in sing will open accounts for non res

[Oxx]

28 minutes ago, wordchild said:

I believe saxo in sing will open accounts for non res

 

True.  I opened an account with them 18 months ago.  However, I subsequently closed it (a) because they increased their charges 3 times in a matter of months making them relatively expensive, (b) WHT on US income was 30%, (3) less than complete access to the London market.  Customer service, however, is excellent.

 

I think the OP should look closely at TD International in Luxembourg.  They are relatively cheap (though they've just announced a small increase in trading charges).  WHT on US income is 15%.  They cover both US and Australian markets the OP requires.  Account opening is straightforward (certified copy of passport, proof of address, I think, from memory).  I've had an account with them for something like 15 years.  No problems with customer service.  I've mostly contacted them via their messaging system because of the time difference.  Almost always get a response next day.

 

Neither Saxo nor TD provides access to the SET or other small Asian markets, unlike BOOM.  Not sure if this is of relevance.

[FruitPudding]

So, I submitted an application to BOOM.

 

Thanks for all responses.

 

But just a note about US tax. Wouldn't I be taxed accordingly with the agreement America has with Thailand since this is where I reside, not Hong Kong (where my broker is)?

 

I only say this because the W-8ben form (for the IRS) is only concerned with the country where you currently reside and you will be subject to the tax treatment agreed between that country and the US.

 

I believe for Thailand dividends are taxed at 15% and gains can be taxed up to 30%, is that right? (I am pretty sure that is what it says).

 

 

[Oxx]

You're right that your country of residence should determine the rate of withholding tax.  However, this only works if your broker actually implements the reduced rate for your country of residence.  In my (not particularly vast) experience, brokers in Singapore and Hong Kong do not implement the reduced rate, and you get taxed at the standard 30%.  (This is one reason to prefer Luxembourg brokers.)

 

In theory you can reclaim the overpaid tax, and there are some companies that will do this on your behalf, for a fee.

[wordchild]

 For me OCBC (in Sing) use the Singapore rates for withholding tax even though they know I am Thai resident.  In some cases Singapore has better treaty rates than Thailand eg  for non-franked income from Australia.   

[FruitPudding]

On Friday, September 09, 2016 at 7:02 AM, Oxx said:

Just an observation, but if you're not a US Person, trading on US markets is not very tax efficient.  It's particularly inefficient from Hong Kong and Singapore.  If using ETFs, identical or similar ETFs are often available on the London Stock Exchange with a much better tax treatment.  The broker concerned doesn't provide access to London.

 

@bojo Hargreaves Lansdown doesn't allow non-residents to open an account.

 

Thanks for your great info on this thread.

 

I have encourtered some silly problems with my BOOM application. After submitting all my documents they said they would open the account if only I could produce my witness' business card (as additional proof). I do, but they can't accept it because it is in Thai, lol.

 

So now I am looking more closely at TD. I will submit an application to them soom.

 

Can you give me further explanation with regards to the London Stock Exchange and US companies (I am a newbie, please forgive).

 

So, let's say I wanted to buy shares in Apple or Google, for example. I am trading through a Luxembourg broker (who gives me access to both UK and US markets). So, given that I am not American (I am British), I would be better off buying Google or Apple on the London Stock Exchange, rather than the US?

 

 

 

[Oxx]

38 minutes ago, FruitPudding said:

Can you give me further explanation with regards to the London Stock Exchange and US companies (I am a newbie, please forgive).

 

So, let's say I wanted to buy shares in Apple or Google, for example. I am trading through a Luxembourg broker (who gives me access to both UK and US markets). So, given that I am not American (I am British), I would be better off buying Google or Apple on the London Stock Exchange, rather than the US?

 

Most companies are only listed (i.e. available for trading) on a single stock exchange.  Usually it's only the very biggest are listed on more than one exchange.

 

As far as I know, Alphabet (the company name for Google) is only traded on NASDAQ, which is a US market.

 

Apple is traded on both NASDAQ, XETRA (a pan-European market) and the Frankfurt Börse.  There are considerations such as whether you prefer trading in USD or in EURO, and whether there's enough liquidity in the European exchanges to ensure a small bid/offer spread.

 

I presume that dividend income from the US listing would be subject to the US withholding tax (15%/30% depending on which broker you use, and assuming you're resident in Thailand).  Germany, however appears to have a withholding tax rate of 25% (26.375% including the solidarity surcharge).  Even worse, the tax is not only applied to dividend income, it's also applied to capital gains.  It would appear that buying in the US is the better option, but please don't take this as gospel.  I'm not familiar with German taxation.

 

If a UK version of these companies were available (and it's not), then you should be better off buying on the London Stock Exchange since there is no withholding tax on dividend income under your personal tax allowance and (I think) an additional GBP 5,000 under some recent tax changes.

[FruitPudding]

Just opened an account with TD.