sophie
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Post by sophie on Aug 19, 2018 11:18:13 GMT 7
Thought i'd start a new thread about this.
A while ago it was proposed on this forum that i open an account in Luxembourg at internaxx for investment. However, after a long process they decided not to offer us the account - actual reason unclear to me.
I was looking through old threads on this forum and i saw that someone advised to use Interactive Brokers
Was wondering if anyone had experience with this platform and if this would be a suitable option? What would the pros and cons be?
Recapitulating our situation:
40y old, from Germany, married, working in Thailand, payed in THB
Probably moving to South of europe in a couple of years, for 5 years or so and after that, who knows?
But if feels much more likely that we will spend the money in the future in Europe rather than Asia.
Looking to invest part of our savings and 80,000 THB / month
I'd invest these for long term at last 7 years
Any advice greatly appreciated!
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Post by Soutpeel on Aug 19, 2018 15:22:27 GMT 7
Thought i'd start a new thread about this. A while ago it was proposed on this forum that i open an account in Luxembourg at internaxx for investment. However, after a long process they decided not to offer us the account - actual reason unclear to me. I was looking through old threads on this forum and i saw that someone advised to use Interactive Brokers Was wondering if anyone had experience with this platform and if this would be a suitable option? What would the pros and cons be? Recapitulating our situation: 40y old, from Germany, married, working in Thailand, payed in THB Probably moving to South of europe in a couple of years, for 5 years or so and after that, who knows? But if feels much more likely that we will spend the money in the future in Europe rather than Asia. Looking to invest part of our savings and 80,000 THB / month I'd invest these for long term at last 7 years Any advice greatly appreciated! This is maybe a stupid comment, but why dont you invest your cash in a Thailand based investment product, sure Fletch would be able to advise...you here working legally, you can invest and take the money with you when you leave...not a problem in your circumstance |
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Post by Fletchsmile on Aug 20, 2018 9:01:47 GMT 7
Given your timeline as mentioned in the other thread, in your shoes I'd be seriously considering Thai equity LTFs for the tax relief. Up to 15% of your income or 500k a year whichever is higher.
What's left after that would be what I'd use interactive brokers for.
I don't use them myself, but have heard decent reports about them over the years, and they've been around for a while. I believe you can buy unit trusts/ mutual funds through them as well as shares which would also mean investment trusts too.
I believe they also offer a facility to borrow against your portfolio at decent rates. This can be very useful to expats who move around and hence may struggle sometimes to get regular loans/mortgages etc thru usual routes because of their short histories in a country or because they are foreigners.
I believe FireinTH uses them.
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FIREinTh
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Post by FIREinTh on Aug 20, 2018 12:55:34 GMT 7
Hi Sophie,
I've been using Interactive Brokers for a while.
Pros:
Cheap commissions and fees, access to worldwide markets, everything is done online (including account opening), easy to deposit money by wire transfer and withdraw money the same way (again all online), professional platform with multiple order types, margin loans are available (I'm using a margin loan at the moment to buy a condo)
Cons:
Minimum deposit of 10,000 USD to open an account, their platform has a steep learning curve, your account is completely self-directed so there’s no one giving you investment advice, although they do have advisors available for an extra fee. Interactive Brokers is geared towards more experienced and active traders, but I’ve never had a problem with my account.
If you need more info just let me know.
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AyG
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Post by AyG on Aug 21, 2018 10:38:29 GMT 7
I am not familiar with Interactive Brokers, however, the questions I would be asking (which I can't quickly answer from their website):
(1) Do they offer accounts in currencies other than USD? It would be an expensive pain to have to convert your EUR income to USD and back again when you invest and sell/receive income.
(2) What is the tax treatment for non-US residents (income and capital gains)?
(3) Do they offer European mutual funds?
You might be better off with Saxo which was originally a Danish operation, and now has operations in a number of countries. I used to hold an account with them based in Singapore.
I also think you should press Internaxx as to why they turned you down. It may be based upon a misunderstanding.
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AyG
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Post by AyG on Aug 21, 2018 13:33:08 GMT 7
... and
(4) What are the costs of getting money in and out of the account? (With a European broker in the Euro area this would be free thanks to SEPA. For a US banker, would you be required to use SWIFT, which is pricey?)
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FIREinTh
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Post by FIREinTh on Aug 21, 2018 21:49:16 GMT 7
In terms of online brokers Interactive is one of the most flexible. 1. For margin accounts your base currency doesn't matter because once you have the proper trading permissions set-up you can trade any market they offer and hold or borrow cash in any currency. Base currency is only used for statements and fees. Cash accounts can only trade products in their base currency. www.interactivebrokers.com/en/software/am/am/manageaccount/basecurrency.htm2. Tax forms are available online and dividend withholding tax is based on the exchange (ie. no dividend withholding tax on the LSE) and your WBEN form for US markets. 3. They offer some European mutual funds, but since you have access to any market in Europe you can also buy ETFs and Investment Trusts  interactivebrokers.com/en/index.php?f=1563&p=global_mf4. Interactive gives you one free withdrawal per month but you still have to pay bank charges. From my experience, SWIFT transfers are about 20 USD as long as there's no intermediary bank involved and take anywhere from 4 to 24 hours to arrive in Thailand. It looks like SEPA is available for GBP and EUR. Withdraws can be done online. www.interactivebrokers.com/en/index.php?f=14718 |
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sophie
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Post by sophie on Aug 22, 2018 18:47:29 GMT 7
Thanks for the advice. Ill look into both options and ask internaxx for more clarification (i did before but their answer was very generic) I had a look at the Saxo Singapore website, also looks very interesting. Do they offer mutual funds though? And European mutual funds? Or is it more a platform for actively trading stocks They do offer something called "balanced portfolio's' www.home.saxo/en-sg/managed-portfolios/balanced-portfoliosWould that be an option for a novice with not too much knowledge about investing? |
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FIREinTh
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Post by FIREinTh on Aug 23, 2018 11:21:30 GMT 7
I checked out your link to Saxo Singapore and it looks like the fund managers put you into different ETF's. If you're looking at something like that, you can still have a mostly hands-off approach by putting together your own simple ETF portfolio. That way, you'll save all the advisor fees and all the other hassles. For example, a lot of people use just 1 or 2 Vanguard ETFs and call it day. On the London Stock Exchange you can use the Vanguard All-World Equity ETF (VWRL) and 1 or 2 bond funds such as USD and EUR corporate bonds (VUCP & VECP). It wouldn't take too much effort to come up with an allocation you're comfortable with. You can buy all those ETFs through Interactive Brokers. www.vanguardinvestor.co.uk/what-we-offer/etf-productsThis link below has some good information about simple Vanguard portfolios. It's US-based, but once you understand the basics you can choose ETF's in the UK (I prefer the UK because there's no dividend withholding tax like in the US). Vanguard do-it-yourself portfolios are quite popular now. www.bogleheads.org/wiki/Lazy_portfoliosGoing with an advisor does have advantages, such as making sure you don't sell at the wrong time and helping you understand your level of risk tolerance, but it's good to know you can do it yourself as well without too much time and effort. Choose what you're comfortable with of course once you have all the information. |
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