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Post by eldivino on Dec 12, 2019 16:05:20 GMT 7
I invest long-term in low-cost ETFs. What’s the cheapest way to invest in a broadly diversified passive fund on the MSCI World (or similar) when earning money in Thailand? I’m currently saving 8-12 months on a 1.5% interest savings account before transferring everything back to my home country where I can invest in hundreds and thousands of ETFs at low cost. However I don’t like that I am not invested in the market for 8-12 months; I’d prefer to invest every month or so.
I had a look at IB but it’s the same Problem or even worse (because on top of the fees of transferring money to a foreign account I’d also have to pay monthly fees to IB).
If this is just not possible here in Thailand, do you have any idea of how to “park” savings (other than on a low interest savings account) before moving the funds back home that doesn’t charge big fees?
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AyG
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Post by AyG on Dec 13, 2019 7:26:12 GMT 7
You're not going to find anything comparable onshore.
You might take solace in the ongoing strength of the baht meaning that keeping your money onshore (at least recently) has been a rewarding experience.
IB = Interactive Brokers? They don't charge a monthly fee (at least they don't charge me anything monthly).
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FIREinTh
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Post by FIREinTh on Dec 14, 2019 12:27:06 GMT 7
Have you checked out IB Lite? Commission-free trading on all US exchange listed stocks and ETFs with no account minimums or inactivity fees. interactivebrokers.com/en/index.php?f=45196IB Pro charges a $10 USD inactivity fee (minus commissions) on accounts with less than $100,000 USD. Even if you go for IB Pro, you may want to re-evaluate the opportunity cost of being out of the market for 8-12 months compared to the fees... |
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Post by eldivino on Dec 15, 2019 10:53:18 GMT 7
I think IB Lite is only available for US clients. Think that was mentioned somewhere in their FAQs.
Either way, even if I could prevent the 10 USD minimum fee per month, I would still have the same issue of having to pay transaction fees for transferring money out of the country which is the main reason for me at the moment to save onshore first before making one big transfer. After withholding tax, provident fund contribution, and expenses, I can c. 70-80k per month. Last time I paid 1k THB transfer fees at Bangkok Bangkok which is already 1.4%. Adding the 10 USD minimum fees im already looking at 1.8%.
Maybe I’m too stingy but I like to keep the costs low. If there’s no way to invest in Thailand onshore I might have to just continue saving here for 6-12 months and hope the Baht continues to rise.
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AyG
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Post by AyG on Dec 15, 2019 11:28:08 GMT 7
You might want to research the costs of Thai brokers which provide access to international markets, for example www.poems.in.th/service_detail.aspx?id=141&Why%20Phillip%20Global%20MarketsThis would allow you to buy low cost ETFs on US/UK (and other) exchanges. Then, when you leave Thailand, you could transfer your positions to a non-Thai broker. However, brokerage starts at a steep 0.25%. You'd also need to look into the costs of the FX side of things. And if you're American I doubt whether you can open an account anyway. |
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