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Trading USA share from Thailand

nicothai
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Oxx Gold Member

Oxx

Posted
Posted
14 minutes ago, nicothai said:

Italian. I have already a trade account with Nomura. But I can't buy foreign stocks.

 

If you really want a broker in Thailand for US stocks, then http://www.poems.in.th/ is the obvious choice.

 

As an Italian, opening an account in the US really is a non-starter.

 

You should also look at opening an offshore account in somewhere like Luxembourg.  http://int.tddirectinvesting.com/ is pretty good.

 

There are similar options in Singapore and Hong Kong, but they're not as tax efficient for US stock dividends.

 

(I'm assuming you're investing, rather than day trading.)

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FruitPudding Gold Member

FruitPudding

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I am in the process of opening an acount with TD Direct International. I will update with my progress.  They want me to call them.

 

I did read some reviews on another website that they can change their policy on residents from certain coutries and later cancel accounts even after years of business together (mostly residents of Japan complained of this treatment, but one resident of Thailand complained of this too, though it was a couple of years ago)

 

 

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Oxx Gold Member

Oxx

Posted
Posted
1 hour ago, FruitPudding said:

I did read some reviews on another website that they can change their policy on residents from certain coutries and later cancel accounts even after years of business together

 

I believe you may be confusing TD Direct International (Luxembourg) with TD Direct Investing (UK).  The latter certainly has closed accounts based upon residency.  I am not aware of the former ever having done so.

 

Putting it cynically, Luxembourg authorities are perfectly happy to have dodgy money sloshing around there; the UK is less keen to the point of overzealousness.

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max72 Advanced Member

max72

Posted
Posted
On 20/9/2016 at 0:32 PM, Oxx said:

 

If you really want a broker in Thailand for US stocks, then http://www.poems.in.th/ is the obvious choice.

 

As an Italian, opening an account in the US really is a non-starter.

 

You should also look at opening an offshore account in somewhere like Luxembourg.  http://int.tddirectinvesting.com/ is pretty good.

 

There are similar options in Singapore and Hong Kong, but they're not as tax efficient for US stock dividends.

 

(I'm assuming you're investing, rather than day trading.)

 

IB commissions are extremely lower. Not even a comparision. $1 for stocks vs. 15 euros, no maintanance fee if you have more than 100K (vs. 45 euros), not to mention the margin account interests and anything else.

For European traders, I think a 15% tax is automatically deducted from the dividends :it's a convention between some EU countries and USA.  

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Oxx Gold Member

Oxx

Posted
Posted
7 hours ago, nicothai said:

What about Saxo?

 

Saxo Singapore will open an account for Thai residents.  However, it has become relatively expensive, and does not implement US withholding tax treaties, so all US dividend income is taxed at 30%, rather than 15%.

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Oxx Gold Member

Oxx

Posted
Posted
7 hours ago, nicothai said:
13 hours ago, FruitPudding said:
Just opened an account with TD.
 
Pretty painless. 


Can you transfer money from a Thai account without problems?

 

 

There are the usual issues with sending money out of Thailand.

 

Send the money in the appropriate currency to the appropriate currency account via SWIFT.  All necessary info is on Payments & Transfers -> Fund My Account once you've logged in.  (All the account numbers are individual to your account.)

 

Don't know whether their bank will perform currency conversion for you should you wish to send in THB.  Best to ask them.

 

Sending account must be in your exact name, otherwise the money will be rejected.  (My UK bank account has my forename as initials, rather than my full name.  They queried this, but did ultimately accept transfers.)

 

When taking money out, if it's to a different bank account from the funding account they will query this, even if it's in your name.

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FruitPudding Gold Member

FruitPudding

Posted
Posted (edited)
On Friday, November 11, 2016 at 5:58 AM, Oxx said:

 

There are the usual issues with sending money out of Thailand.

 

Send the money in the appropriate currency to the appropriate currency account via SWIFT.  All necessary info is on Payments & Transfers -> Fund My Account once you've logged in.  (All the account numbers are individual to your account.)

 

Don't know whether their bank will perform currency conversion for you should you wish to send in THB.  Best to ask them.

 

Sending account must be in your exact name, otherwise the money will be rejected.  (My UK bank account has my forename as initials, rather than my full name.  They queried this, but did ultimately accept transfers.)

 

When taking money out, if it's to a different bank account from the funding account they will query this, even if it's in your name.

 

I exchanged my money before sending it.

 

I shudder to think what rate Luxembourg would give me on THB.

 

I have had experiences with exchanging THB in the UK before and they gave me 5 baht less per pound than I would have got if I had just waited and exchanged in Thailand.

 

I always advise my relatives to exchange once they arrive here. Western countries dont seem to appreciate handling THB.

 

Edited by FruitPudding
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FruitPudding Gold Member

FruitPudding

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Posted

I am impressed with their customer service.

 

I have called them twice now. Always speak to a human within 30 seconds.

 

Easy to deal with and great English.

 

I also like the web interface. Very user friendly. The phone app is pretty good too. Though it doesnt do nearly as much as the web platform, but fine for placing orders. I have bought 3 stocks already using the phone app.

 

When opening the account they asked me twice to clarify my tax residence and also asked me for my Thai Tax ID Number (or confirm I didnt have one). So I expect they will put me through on the Thai tax agreement.

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Oxx Gold Member

Oxx

Posted
Posted
3 minutes ago, Bulldozer Dawn said:

If you are Italian you are much better off to trade Thai Shares and not on the US stock market.  Read the following article:

 

Did you actually read that article before posting the link?

 

The source is hardly impartial - a website thaishares.com which has a vested interest in encouraging people to trade Thai stocks.

 

The article is titled "Trade Thai Shares Not American Penny Stocks", so is specifically about US penny stocks - not general US equities.

 

The article is highly dodgy, and your conclusion even more so.

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Bulldozer Dawn Silver Member

Bulldozer Dawn

Posted
Posted
21 minutes ago, Oxx said:

 

Did you actually read that article before posting the link?

 

The source is hardly impartial - a website thaishares.com which has a vested interest in encouraging people to trade Thai stocks.

 

The article is titled "Trade Thai Shares Not American Penny Stocks", so is specifically about US penny stocks - not general US equities.

 

The article is highly dodgy, and your conclusion even more so.

 

The site I linked to has NO advertising or other sales pitches...none whatsoever.  It is also currently the leading website in Google providing english language information on trading shares and derivative warrants on the SET.  Tell me,  where are the vested interests you describe?

 

The article is well written in simple English and presents valid and easily verifiable points.

 

Why would you suggest that the OP use complex arrangements to trade in the US and then have his profits (if any) eaten alive by brokerage fees and the US taxation system.  He will also have any US dividends taxed at 30%.  It is simple for him to open a Thai trading account and trade Thai shares.  Any capital gains he makes are tax free.   His Thai broker will also pay him interest on the balance of this trading account.  

 

Finally, no one should be entering into the US market, or any other equity market at the moment for long term.  Historically the US market always corrects every 8-11 years.  We are now 8 years in since the GFC.   Do you think that the election of Donald Trump has made an impending correction less likely?

 

If the OP opens a Thai trading account he can empower himself to trade actively on the SET and make his own decisions.  He can also set up trailing stop losses to protect his investments when the next correction arrives shortly.

 

 

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TallGuyJohninBKK Star Member

TallGuyJohninBKK

Posted
Posted (edited)

The Schwab brokerage from the U.S. does have an international unit that's open to pretty much anyone internationally, including Thailand. But the opening deposit needs to be at least $25.000 U.S.

 

http://international.schwab.com/public/international/nn/open_an_account?country=TH

 

Quote

 

SCHWAB ONE INTERNATIONAL® INDIVIDUAL ACCOUNT

Required documents from each individual account applicant and Power of Attorney (if applicable)
  • Schwab One International® Account Application Form
  • Substitute Form W-8BEN1—complete one form for each non-U.S. citizen/resident account holder. If there is a U.S. address in your account documentation, such as your mailing address or U.S. based Power of Attorney (POA), please supply the additional documents listed in the Form W-8BEN instructions.
  • Passport—clear copy of current passport pages containing photos, signature, personal information and Machine Readable Zone (MRZ) lines for each account applicant. Also required for any Power of Attorney (POA) on the account.
  • One bank (or financial institution) statement and one utility bill for each account holder dated within last six months. Both documents need to show matching name and home/legal address. (A post office box is not acceptable.)

    Examples of utility bill include:
    • Gas
    • Electricity
    • Water
       
Additional required documents (if applicable)
  • Schwab Power of Attorney Form2
  • Authorization to Purchase Offshore Investment Shares Form3
  • Schwab Transfer of Account Form4
     

If a U.S. address is being used or affiliated with the account, a Letter of Explanation is required.

If the account holder has a U.S. address and a mailing address in a country that is outside the country of permanent residence, a second Letter of Explanation is required (i.e., the account holder must provide one Letter of Explanation for the U.S. address and one Letter of Explanation for the mailing address in a different country).

Each account holder must complete an original signed Letter of Explanation specifying reason for needing to use or to have an affiliation with a U.S. address on account.

If your mailing address is a U.S. address, the letter must also state how you obtain your Schwab mail from this address and to whom the address belongs.

 

1. Internal Revenue Service Substitute Form W-8BEN: This form is used by a foreign person to establish foreign status, to claim beneficial ownership of the income of which the form is being provided, and, if applicable, to claim a reduced rate of, or exemption from, withholding as a resident of a foreign country with which the United States has an income tax treaty.
 

2. Power of Attorney: Use this form to name an Agent (Attorney-In-Fact) to act on your behalf in connection with your Schwab account. A separate Power of Attorney form is required for each account. This is an important legal document.

3. Authorization to Purchase Offshore Investment Shares: This form must be signed and sent from outside the United States. This form is required if you select to invest in Offshore Mutual Funds including Offshore Sweep Funds.
4. Transfer Your Account to Schwab: This form can be used to fund this account by transferring assets from another brokerage firm.

5. Add Options Trading and Margin to Your Account: This form is required if the corporation wishes to request option, margin, and short trading.

 

 

 

Edited by TallGuyJohninBKK
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FruitPudding Gold Member

FruitPudding

Posted
Posted (edited)
36 minutes ago, Bulldozer Dawn said:

 

The site I linked to has NO advertising or other sales pitches...none whatsoever.  It is also currently the leading website in Google providing english language information on trading shares and derivative warrants on the SET.  Tell me,  where are the vested interests you describe?

 

The article is well written in simple English and presents valid and easily verifiable points.

 

Why would you suggest that the OP use complex arrangements to trade in the US and then have his profits (if any) eaten alive by brokerage fees and the US taxation system.  He will also have any US dividends taxed at 30%.  It is simple for him to open a Thai trading account and trade Thai shares.  Any capital gains he makes are tax free.   His Thai broker will also pay him interest on the balance of this trading account.  

 

Finally, no one should be entering into the US market, or any other equity market at the moment for long term.  Historically the US market always corrects every 8-11 years.  We are now 8 years in since the GFC.   Do you think that the election of Donald Trump has made an impending correction less likely?

 

If the OP opens a Thai trading account he can empower himself to trade actively on the SET and make his own decisions.  He can also set up trailing stop losses to protect his investments when the next correction arrives shortly.

 

 

 

I don't know shit about Thai companies. How the hell can I invest in them? Unless you expect me to just trade off charts and patterns.

 

Yeah, I will have to pay tax, but I feel that personally I am more likely to make money off markets I understand and from companies I understand.

 

Yes yes, markets correct themselves. And it is a great time to buy shares. A nice 20-50% discount on a great company is an easy way to make money.

Edited by FruitPudding
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Bulldozer Dawn Silver Member

Bulldozer Dawn

Posted
Posted
5 hours ago, FruitPudding said:

 

I don't know shit about Thai companies. How the hell can I invest in them? Unless you expect me to just trade off charts and patterns.

 

Yeah, I will have to pay tax, but I feel that personally I am more likely to make money off markets I understand and from companies I understand.

 

Yes yes, markets correct themselves. And it is a great time to buy shares. A nice 20-50% discount on a great company is an easy way to make money.

 

Your arguement does not make sense.

 

Thai companies release the same type of information to the market that is required of companies listed on the NYSE or Nasdaq.  The financials and other required reporting is also in English.   So if you are able to carry out fundamental analysis on a US stock then you already have the necessary skills to analyze a Thai share.   Or do you purely rely on what the crooked American media tells you about an American company before you invest your hard earned?

 

I find it much easier to research Thai companies because they mostly have simple recognisable business models.   Siam cement does...cement.   CP foods does....food.  And so on. 

 

The American markets are full of companies with obscure, complex and often synthetic business models.    I think it was Buffet who once said only invest in a business that you understand.   It is much easier to understand the core activities of Siam cement than those of Google.

 

I like to trade Thai derivative warrants rather than underlying Thai shares.  You can make money in a rising or falling market and don't have to buy and hold.  Here is an article explaining how to short sell Thai shares.  It may come in handy in the months ahead:

 

How to Short Sell Thai Shares

 

 

 

 

 

 

 

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alocacoc Gold Member

alocacoc

Posted
Posted (edited)
On 11/12/2016 at 4:25 PM, FruitPudding said:

 

Yup.

 

It took a day or two.

 

You mean? TD Ameritrade? Or TD Intl.?

 

I can confirm, TD Ameritrade does not open accounts for Thai residents. And they don't let you withdraw money to Thailand.

 

Edit: Just saw you mentioned TD Intl.

Edited by alocacoc
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