1. Correct - you open the US account with them and then transfer in. I personally have Maybank USD account already but you could transfer direct from RM account at bank's rates if you wish.
2. IB does offer leverage, TDAM doesn't as far as I know - I don't know to what extent IB gives leverage as I don't use this at all.
3. You open an account with IB which then allows you to deposit in various ways, SGD into Citibank SG account, GBP into UK Citibank account and then convert currency using FXTrader in IB - I have various accounts in different currencies so this way you could avoid fees (although not if funds are coming from RM)
4. IBs rates for FX are very competitive - very close to spot rates, I'll log in shortly and send you a screenshot if you wish, don't have my security card to hand right now. All in all, a transfer will cost you about $45-50 USD if transferring from Maybank USD account to IB or TDAM.

RM isn't openly traded overseas, so there's no option to convert to or from RM within IB.

Here's example of FX rates you get with IB between currencies, screenshot taken a minute ago.

ok, thanks for info. appreciate it.

currently what broker you using?

cimb itrade.

Dividend time

Time to rebalance

what broker r using?u are in US ETFs?

I use IB.

Yep last yr more on etf.

now looking toward to individual stock

hi, mind to share what is 'IB'? im interested in ETFs too, want to get some Vanguard funds.

IB is interactive brokers

Can check out the Vanguard Ireland domiciled funds to reduce the Withholding taxes.

Interactive broker's company is well known and trust worthy? sorry ah, never heard of them.. haha

Yup, and they're covered in US by SIPC

thanks~ browsing their website now

FYI, depending on how you plan to invest IB may not be the best option.

IB has low fees, but you need to subscribe to the live data feeds at a cost and they charge an inactivity fee if balance is less than 100,000 usd or currency equivalent. Plus there's no automatic dividend reinvestment (DRIPS) like TD Ameritrade

oh? they charge inactivity fee for 100,000 USD from 1 single investor or total fund size?

im looking at Vanguard consumer staples, S&P 500, information technology and REIT.

cant afford to invest too much, maybe yearly 5-10k USD (total) only

Have a look at their site, there's a breakdown of fees - the 100,000 waives your 10 usd monthly inactivity fee. This can be in stocks, cash in any currency etc to 100k usd equivalent.

It's also waived if you carry out enough trades a month, ie 10 usd in commission, depends if you're more an active trader or a buy and hold investor

Oh so it's 10usd. I'm looking to invest quarterly or monthly if it's convenient to make payment.

I'm building a long term nest, so I guess I'm going to buy and hold. Looking at 10 yrs horizon:)

OK similar to me, also long term and not very active trader.

Have a look at Vanguard UK ETFs, you can buy those through IB on LSE (London stock exchange) and you'll have only 15% Withholding on dividends rather than 30%.

Hi RJB123,

May i pick your brains/experience on ETF tax optimization for "non-resident aliens"?
ie. Malaysians or Singaporians buying ETFs listed on US, London, Irish stock exchange

From my understanding of your guidance here in this thread (danke danke) + own digging (hard to find "nonUS" or "nonUK" stuff - most articles are written for US & UK investors ):
1. US listed ETFs: "Aliens" dividend withholding tax 30%, can dig back 15% but extra work & no capital tax
2. London listed ETFs: "Aliens" dividend withholding tax 15% & no capital tax

Picking your brains/experience
a. Is my above understanding correct?
b. Is Ireland & Luxemburg listed ETFs similar to (2.)?

c. I'm planning to do EU & Russia for opportunistic (ie. buy fear)
+long term Developed Market,
and have searched MSCI IK + Vanguard UK for possible candidates.
Any thoughts to share on the below?
http://finance.yahoo.com/q?s=CSX5.L&ql=1 for EU ETF opportunistic
http://finance.yahoo.com/q?s=SWDA.L&ql=0 for Developed Mkt ETF long term value averaging
http://finance.yahoo.com/q?s=CSRU.L&ql=0 for Russia ETF opportunistic

Any pointers, feedback & corrections are greatly appreciated.
"Virgin" in non-MY & non-US listed ETFs

Hi,

1. On this Tax issue I'm not even 100% sure what the deal is - if we can really get the 15% back or not on US domiciled ETFs? Even if we can, it's a bit of a hassle so I've opted to go with Ireland domiciled. I've just received TDAM statement for the year and have paid approx $250 in WT so going to see if I can get half of this back without too much hassle, will update.

2. Actually, Ireland / Luxembourg I'm referring to as the domicile of the ETF, not the exchange it's traded on. Eg S+P 500 Vanguard Ireland domiciled is traded on LSE as VUSA / VUSD (GBP / USD) , because of the tax agreement between Ireland and US, the rate is only 15% rather than 30%

My personal view on the ETFs :

1. ISHARES VII PLC ISHARES CORE EU/ iShares Core EURO STOXX 50 UCITS ETF (CSX5) - Not that broad,covers only approximately 50 of the largest caps across Europe. Something like Vanguard VEUR (Vanguard FTSE Developed Europe) holds in comparison holds in excess of 500 different stocks.
2. Looks good to me, Vanguard VWRL is similar, more holdings but also a TER which is 0.05% higher.
3. Russia ... I haven't really looked into many Russia ETFs. I've bought and sold some RSX but not holding for the long term so didn't bother doing much research and don't care about dividends much on this. (US trading costs are cheaper, that's why I went with US listed..). Very volatile especially with the exchange rate fluctuations :



This post has been edited by rjb123: Apr 6 2015, 05:39 PM