Thanks Ramjade!
By the way, i have successfully transferred the money via maybank2u to TD ameritrade.

Fyi, TD ameritrade will waive the charges incurred if you are a newbie. First time transferring money to them.
And they're running a promo now. Min is 10k USD and you will be entitled with 60 free trades i think but you have to use it within 60 days haha something like that.
And you have to transfer the money within 60 days after you opened your account with them.
Another clause is you have to ensure your money is always 10k USD also, or else there will be some charges incurred...if u use that amount to buy ur stocks is ok..

oo Danke danke for the sharing bro.
was planning to inject more capital to my TOS to prep for lelong bwhahah

How much is the US bank charged u?

Haha yes..shopping time!

Hi MNet, not yet seen the charges reflected in my acc.
will update u all once I see it

trying to understand more about foreign ETF before I commit

correct me if I m wrong, from what I understand in the discussion, if I have an account with a US based broker (say IB/charles schwab) and I buy a US based ETF, the gains will be taxed 30% by the US government?

but if I have an account with a non-US based broker (say 8securities) and I buy a non-US based ETF (say london?) the gains would only be taxed 15%?

Nope won't work that way. There's no capital gains for foreigner but foreigner will be hit with a 30% with holding dividend tax.
It all depends on where is it listed. If you buy US demociled ETF, expect to get tax 30% on the dividend. If you buy a Irish domiciled eTF which is listed on LSE which track the US index, you only get hit with 15% with holding tax on your dividends.

ok, so as a foreigner,

US demociled ETF = 30% tax on dividend
Irish demociled ETF = 15% tax on dividend

why would any foreigner buy US ETF then?

after a posted the tax question, i did a bit of googling, this article might explain it better for other people
withholding tax US vs Ireland

For trading US domiciled ETFs are better due to liquidity

For holding you’re better off with Irish domiciled due to the WT 15% vs 30%

Fees to buy Ireland domiciled can be a bit higher (I buy VUSD for example on LSE, fees are a little higher than SPY on US) but as I’m not actively trading it’s not really a big difference

Malaysia - Malaysian Ringgit (MYR)

TransferWise can only deliver MYR via domestic transfer to bank accounts based in Malaysia.

We send MYR via domestic transfers within Malaysia.

Currently TransferWise cannot send money from Malaysia.

Hi guys,

I am new to this so please be patience with me. I am reading though this thread. Still reading.

ETF is tracking of a basket of index right? Suppose I want to buy a specific stock like let's say Amazon. Is it the same?

Do I need a bank account in USA? In the event I want to cash out they will transfer back the money to my account in Malaysia?

https://forum.lowyat.net/topic/4640026

Double post

This post has been edited by takadanicklagi: Aug 19 2018, 09:47 AM

Well simple ETFs can track an index such as the S&P 500. Others are more complex (inverse, leveraged, currency hedged etc) but yes you buy them the same as you would for example Amazon on an exchange.

You don’t need a bank account in USA - you can use a foreign broker or you can use a local broker too. In all cases you cash out into your account in Malaysia or other accounts overseas if you have.

ETF and stocks are listed on exchange. You will need a broker which can trade US stocks.

As rjb123 said, Nope you don't need a US bank account but every time you convert from RM > USD > RM, banks take a chunk out of it in terms of marked up forex rates, transaction fees, multiple fees (if any)..

Having a US bank account will lower your cost significantly. Also never buy using local brokers as apart from the fees mentioned above, they marked up the commission, have dividend fees, maintenance fees.

If you are planning to buy foreign stocks, your choices would be if you save cost.
1) open a local broker in that country.
2) open a cheap international broker

Thanks

1) will check with Fidelity how to go about this.
2) any cheap international broker to recommend ? Thanks

u can use interactive broker

Fidelity is bloody expensive.
If you are short on cash, 8 securities.
If you are loaded interactive broker.

Do you have website for interactive broker? Will check It out. Again very new to this. Only familiar with Singapore

Reason I am asking on fedaity is because I already have an account with them coz got stock option from my company.

Just Google
Don't open interactive broker unless you have USD100k cash ready.

Ahh ok. I thought interactive broker is a generic term.

Not so much la.