Unit 3: Selecting a Broker - Part I

Unit 3:  Selecting a Broker - Part I

I am  OK with many local brokers but some more then others.  Thai Securities (Tisco),  YUANTA Securities and Bualuang Securites are solid choices but of course there are various others good ones.  Overall these can produce good research with excellent English besides a long local presence. Unlike some others, they have for many years covered a few select companies beyond just the largest stocks here.   Tisco was the very first broker I had contact with in 1988, and on the brokerage side, they never disappointed me.  I think their -on line trading system was not the best in the industry but is a good place if you have a few million Baht to invest.  Tisco also has a Hong Kong office -as far as I know.  Most brokers now offer the standardized SET STREAMING system for trading and market watching.  When you do on-line transactions, the least expensive way to trade stocks here as most elsewhere, you will now have to opt for a 4-6 digit code to log on, sent directly to your smart-phone, for security reasons.

We hear similar good reports from Boom.com. Easy for transactions, several markets, low commissions. On line operating out of Hong Kong. But you better check again and inquire what their commissions are, as compared to dealing directly with a Thai broker.  Dealing with a Thai broker in Thailand will always have lower commissions on buy/sell transactions.

Bualuang Securities has various branches with their headquarters on Silom Road, in Bangkok.  They are solid, professional but as always you must be careful following the marketing officers advice -as these too often are transaction oriented, not new wealth creators.  You can  set-up your account to send buy and sell orders alternatively through e-mail, phone, SMS, but again ask about this directly.  Their staff often speaks good English.  Its important to have a Thai bank account in place so to collect your e-dividends.  Realize brokers here are transaction oriented and their research may at times be biased.  The brokers and their systems to trade are not the problem, their research can be.

Maybank/Kim Eng is OK as well but this can vary branch to branch.  MayBank/KimEng is an international broker based in Malaysia.  A few years ago they were acquired by largest MayBank, out of Malaysia.  Kim Eng does not have the best of back office support and their trading platforms could use improving, as is their research.  They have many offices throughout Thailand with a decent on-line trading system, like the others.  The minimum amount to open a online trading account, last I checked,  is only 50,000 Baht, vs. TISCO is much higher.  Kim Eng research in the past was a above average and you do not need to be a client to access most of it, but this had lagged in recent years.  Make sure you get your e-dividends, a good way is to set up the e-dividend option directly with your Thai Bank.  Ask the marketing officer about this. YUANTA is fine too, they got a long many pages application process like most others and their research and back office seem tops.

These are just a few short comments. For the more comprehensive review I suggest to visit this link, where I regularly update all my broker comments:

https://thaistocks.com/content/broker-review-tips-0