As a foreigner, how to open a Thai broker account.

Some non-members foreigners here often ask me key details on how to get a Thai brokerage account opened -and going:

Yes, a Foreigner you can buy/sell Thai stocks, get the dividends and repatriation of capital back to overseas in their name.  Repatriation has never been a problem in all the 35 years I've been here. Think about it, no foreigner would ever invest in Thai stocks if repatriation of capital is an issue.

Here below are a few key issues to keep in mind:

---When you visit a Thai broker to get an account open, make sure to bring your passport and Thai Bank account with you, as well as your Thai phone.  A Thai bank book is required to collect the e-dividends which then are automatically deposited there. 

---Don't be surprised nor alarmed, there are lots of forms to be signed including one where you state, yes or no, if you are a US citizen.

---Make sure you tell the broker if you want a Cash account -or not.  A cash account means all your cash balances are held by the broker, they usually pay 0.5% interest on that.  The other account called ATC means all the buy/sell trades settle with your Thai bank, so when you buy/sell, it automatically and directly deposits the funds into your Thai bank account. Most set it up like this as then your Bank holds your funds.   

---But make very sure you have only a "Cash" account, so the funds you deposit stay with the broker: This so, if you are thinking of repatriation of all or part of your funds in the future, as if your money gets deposited back to your Thai Bank account they, the bank, will have to repatriate -and this is often a problem as the bank then may ask for proof you brought these funds into Thailand.

---The broker may ask for some basic financial information on/about you, this only so to assure, you are "investor suitable".  Just put down some basics, it does not have to be a full disclosure!  To get the account opened you will need to have a SMS send to your phone so to log-on with the then given SMS sent code.  Most all brokers charge a standard 0.25% commission, but its around 0.20% if you trade on-line which is what I would do.

---Once you get confirmation that the account is opened and you have your new broker account number it usually takes 10 days, the broker (marketing officer) then will give you bank instructions how to bank-transfer the funds into your new Cash broker account.  OR, alternatively to confirm its set up to settle your trades via ATC, i.e. your bank account.

Then plan another visit so he/she can show you how to buy/sell on-line. Via their standard app., called "Streaming".   Not all marketing officers speak good English and beware just about all will try directly or indirectly induce you to trading, which is different then investing!  Last but not least all foreigners should only buy/sell noted NVDR shares so to get the shareholder rights, including dividends.  NVDR shares are the same as local shares(!), but have an (R) noted right next to them.  NVDR shares forfeit their right to vote at a companies annual meeting, but this is no big deal.

Best Regards,