ABC's, to invest in Thai stocks by non-Thai's.

PaulRen's picture

ABC's, to invest in Thai stocks by non-Thai's.

First step is to have a Thai bank account so to collect the dividends, as Thai brokers can't endorse e-dividends.  As these are usually directly deposited to one's Thai Bank account.  Then, separately one has to open a Thai broker account which requires a long application, but its OK and the marketing officer will help.   Both can be obtained if you have an introduction and it's not absolutely necessary to be a long term resident!  But depending on the bank branches manager approval, and different branches have different approvals.  A Thai address does helps!  Also there are no so called stop-loss orders offered here nor GTC (good-until-canceled, so you have to re-enter the order every day).  Also no joint name accounts.  On-line trading works very well and is recommended. It has a lower brokerage commission of around 0.20% vs. 0.25%, per transaction.  If you enter the order with your marketing officer (make sure they speak good enough English, and most do).  Trades can settle directly with your Thai bank account, this is called ATS and is also recommended.  Meaning buy/sell transactions will automatically be deducted and settled through your Thai bank account -which can be linked with an ATM card. So you can make withdraws worldwide. :)  One can of course anytime ask the broker to wire out funds and any profits made, anywhere worldwide, as long as its in your own same proper name.

Capital gains are Thai tax free to individuals but not so to a corporate account.  Its best to deal directly in Thailand with a Thai broker, as foreign brokerage commissions are much higher and other hurdles can present, like new rights offerings. Besides dividends some companies offer free warrants or new rights offerings, which means new shares at a favorable price. There has been some problems with this in a few instances with non-Thai brokerage accounts because the foreign broker mandates a prospectus issues for newly issued shares and in Thailand these rules may be different.

Best Regards,

Paul A. Renaud.