More on the ABC's in getting going.

PaulRen's picture
Submitted by PaulRen on Fri, 08/07/2011 - 3:37am
Category: 
Introduction

 

More on the ABC's in getting going here.

KimEng is a leading broker here in Thailand. There on-line account is easy to get used to. Bualuang Securities is in the top 5 and also a leading broker with clear English stock market research. Bualuang is an advertiser at this web site. There are many other good Thai brokers out there.  Beware as anywhere, some of the brokers stock research can be biased -or even wrong.

The account opening is a few pages but no big deal to the determined. The thing is about dividends, dividends in Thailand can only be endorsed/cashed by a commercial Bank. So if you get dividends as a foreigner sooner or later you will have to have a Thai bank account opened.  And this is easily obtained but only in person, there are no bank statements, only a passbook. This you can update the account balance and make withdraws from anyware, through their issued ATM Bank card. So you then have access to cash your dividends from anywhwere in the world. This is the best set up and lowest broker commissions!  (The bank, on account opening, will ask for an address and or a mobile phone number but you can give the Hotel address, without showing the Hotel name...remember, the Bank never sends out any statements. A mobile phone is very easy to get in Thailand.)

Its not possible to use another party's Bank book to cash your dividends. As any stock dividend payment will be made out and payable to that persons name only.   If by some chance you receive an interim dividend on one of your stocks before you have a bank account, you can ask the broker to se it up so its registered mailed to your Thai address. Then, cash it when you have your own bank account here.  Ideally you can set your broker account up to be e-dividend, this means that all your Thai stock dividends will be sent and deposited to your bank account directly, ie. this is most convenient.  Of course the TSD (Thai Stock deposit center) still sends you a statement showing the amount of shares you held, the dividend paid and net deposit to your account, after the 10% dividend tax.
I am told you can open a Zmico acct. where they will re-deposit the dividends directly to your account, not sure how they do this as they are not a bank? You would have to ask them directly.  Or, for those whom are members here I can help more on all this.  Dividends are usually paid every April/May, but some companies pay interim dividends in Aug/September.

There are no taxes on capital gains of any kind here, only a 10% withholding tax on dividends which is withdrawn right at the source. So there are no Thai tax or other papers to fill, out of any kind.  Thai stocks can be held in an individual foreign name called NVDR’s,  but never in a joint named account.  Re-repatriation of funds and gains to anywhere in the world is easily done, but your funds must always stay in your own name.  On getting going in Thai stocks

The key, as always, is to know what companies to invest in and not have the Thai broker/marketing officer turn you into a day trader.  Marketing officers in Thailand are for the most part trading driven, not investor returns driven.  Hence a poor local practice is that they induce investors to trading strategies with often poor longer term returns.

Thaistocks.com is by heart and head a value investor driven service. We view creating new wealth a form of art. We do it through demanding & experienced securities’ analysis work and by researching and visiting companies in person -on a regular/reoccuring basis for over 20 years already.  All, as is seen in the best interest to the responsible medium to long term investor.

Best Regards,

Paul Renaud

www.thaistocks.com