rjb123,

By the way, TD own a bank too. It is called the TD Bank. So, in your case, your spare money is rolled into a bank A/C. Hence, it is protected by FDIC. In some other case, the money is held right in the brokerage A/C. Hence, it is protected by SIPC.

In any case, it is protected by FDIC or SIPC. One way or another.

Dreamer

I'm aware of the bank - if I remember correctly they give you 2 choices of parking your cash , either FDIC or SIPC. Doesn't really make a difference to me as I'm not planning on having anywhere near the limit in cash parked there anyway.

Most important thing is, there's protection in the unlikely event of them going under.

rjb123,

I have a TDAM A/C too. It is for my play money..

Dreamer

Who do you prefer as a main broker?

I opened an account with IB as well, but really prefer the TDAM interface

rjb123,

I do so little trade that I use TDAM.

Dreamer

May I ask did you ever successfully get your withholding tax back? It's not by filling w-8ben form? Tq

Okay but what about the cash balance held in the account? and the wire transfer fees... $25 eep. There's no other way to transfer it other than wire?

Anyway the point is, it gets messy.. the only one seems to be Etrade. And etrade is like :

http://www.consumeraffairs.com/finance/etrade.html

Depositing costs : Rm10 for the wire, Rm30+ for commission, then if the money is somehow not credited, have to deal with Singapore and people who might just decide to ignore your emails, and then what, you'd have to go to Singapore to sort it out? Withdrawals not processed, account deducted but doesn't show up in bank, how would you settle this if you are all the way over here?

Ok, now suppose this : You are in Malaysia and you open an account with a US brokerage. You place say $50,000 in it, maybe use $40,000 to trade.

Scenario 1 : One month later $5000 is missing from the account. What can you do?

Scenario 2 : Your account is locked for "suspicious activity." What can you do?

Scenario 3 : You pass on and there is say $1mil in the account. How would you get it out?

Scenario 4 : It is taken from your account, but it does not show up at the local bank. US brokerage ignores you, or tells you it's already been transferred. If this was a local brokerage, we'd have hit the tribunal, and then the newspapers, and then the securities commission.. and then we'd have the money lol but if it was a US brokerage, and they ignore you.. then what?

Cash balances are protected by FDIC/SIPC. Afaik you can deposit via bank draft but is a lot slower - considering the lower purchase and sales charges the wire fee isn't really a big deal (unless you're depositing small amounts where the wire charge is a significant percentage)

I'm not too sure why you're coming up with all these scenarios - in this day and age it's extremely rare for wire transfers or funds just to suddenly disappear and go missing, either they're credited to the destination account or returned / rejected if there's an issue with the payment. I do multiple wire transfers around the world every single week for business, never had a single payment just go "missing"

Scenario 1 : Why would $5000 just go missing? Doesn't make sense. All these brokers are regulated by authorities in their respective countries - they can't just make your money disappear and ignore your e-mails / contact.

Secnario 2 : Why would the account be locked for "suspicious activity"? If something like this does occur (most likely due to attempted unauthorised access II guess) it'd just be a case of supplying a few documents.

Scenario 3 : Same as with other banks, just need to ensure your next of kin etc. has the relevant details

Scenario 4 : As per first point above, these brokers are regulated in their countries - money doesn't just disappear.

I'm not sure what point you're trying to make here - just because a bank/broker is in another country doesn't mean it isn't safe and money doesn't just go missing!

I filed W8BEN form, but withholding on dividends is still 30% (I believe as Malaysia doesn't have DTA with USA)

From what others are saying you need to file 1040NR form - I only started with US ETF this year so won't need to do this until 2015, will update then.

Tq for the reply, same as you I did fill the W8BEN too but the withholding is still 30%. So wonder what need t be done actually.

The W8BEN just exempts you from CGT, so we'll need to do the 1040NR filing for 2014 by April 2015.

Depends on the amounts of course - for me the claim would be so small at present it would be a total waste of time!

Sorry, but have you actually read the link? if I had the same problems those people had, what recourse would I have had? you're right it doesn't make sense, but then read the link.





From http://www.consumeraffairs.com/finance/etrade.html

Also you have a lot of faith in regulation :



from http://business.financialpost.com/2012/07/...t-of-peregrine/

So yea. what if this happens? what can I do from all the way over here?

Is this period of record high prices a bad time to start any long term program even with 60-40 funds like Vanguard VSMGX?

Won't the fees from regular rebalancing of ETFs lose most of the edge over just sitting on the above?

oneeleven,

<<Is this period of record high prices>>

http://finance.yahoo.com/q/bc?s=BND&t=1y&l=on&z=l&q=l&c=VT

1) High price for stock mean low price for bond usually.. In most cases, not all asset classes hit high or low at the same time. Look at above chart of VT versus BND.

<< Won't the fees from regular rebalancing of ETFs lose most of the edge over just sitting on the above?>>

2) A) Unless you are US resident, you cannot invest on Vanguard mutual fund. ETF is the only choice.

B) Regular re-balancing??

i)Normal recommended re-balancing schedule is once every year or every two year.

ii) If you band (5/25) based re-balancing, you should adjust your band wide enough so that it only do re-balancing once or twice per year.

Dreamer

Sounds like a Schmitt trigger to me.

Folks,



Asset return that you can capture via ETF..

Dreamer

what a productive thread. Btw do you guys have any brokers/traders recommendation? im trading from malaysia.

zk9,

You can use US Brokerage A/C from anywhere in the world as long as you have access to Internet.

Dreamer

many US broker dont allow non US citizen as customer

MNet,

Many people on this forum had done it. And, they are not US citizens. So, which US broker do you refer to??

Dreamer