Unit 5: Opening the Account

Unit 5:  Opening the Account

When opening a Thai brokerage account in Thailand:

Try right from the outset to establish what is called an ATS account (Automatic Transfer System) that way, all your buy/sell stock trades, settle through your own Thai Bank savings account.  This is preferable, as the local bank then holds your idle funds -not the brokers.  This as compared to a cash account where the broker holds your idle cash.  You so earn some small interest on your Bank savings account and have full access to your funds through the ATM machines, worldwide.  There is a 0.14 or 0.15 Baht fee charged by the banks for every ATS transaction.

Sign the E-dividend form, that way all your dividends will directly/automatically be sent to your Thai Bank account, avoiding running around with dividend checks issues in Thai Baht currency.  Thai brokers will know about e-dividends and have this form on hand in their offices.  Regardless, you will be sent a separate dividend confirmation statement via registered mail anywhere in Thailand at the address given. (I don't' think they will send these overseas, air mail?)

I would advise not to mix your stock trading bank account with a normal Thai bank savings account, as otherwise you may get confused by mixing activity together.  The just described preferred method requires you to be on location in Thailand at least once, so to set up the Thai Bank account.  (You can use your Thai Bank ATM card to make ATM withdraws from anywhere, so have instant access to your dividends, worldwide anywhere).

If you wire funds from overseas, wire these to your broker directly, after you opened your account there.  This is important, here is why:
 
Do not wire the funds first to your Thai bank and then to your Thai broker.  The reason is that when/if you want to repatriate your capital and stock profits, the Thai broker may ask for proper import of capital documentation.   Capital imported for Thai stock market investing is free to leave the country anytime, including all gains and dividends!  You should check with your Thai broker on this first, as things can change.

When wiring back funds overseas, using your Thai bank, this can create delays and unnecessary headaches.  The key point is:  You can repatriate funds and capital gains back anytime to yourself,  without any Thai tax consequences as long as you are an individual and you wire funds back into your own name.  I do not advocate corporate accounts when it comes to owning Thai shares.  Thai broker accounts must be set up in individual names, joint accounts are not offered.  Never have.

I never advocate margin trading as in the long past this was not handled credibly;  meaning "forced sells" were not followed?  Resulting in huge customer losses in '97 and '98.  I would just focus on undervalued Thai equities!  Not program trading nor so called trigger funds.  Warrants can be risky instruments and so I would not get active in this, unless you understand these well through some of the articles as explained elsewhere at our web site.