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 All about ETFs / Foreign Brokers, Exchange traded funds

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asimov82
post Oct 29 2016, 10:07 PM

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hi,

Concerning the Ireland domiciled ETFs that traded at LSE,
anyone here use local brokerage's foreign stock account to buy?

I am thinking of bogleheads stye investing practice via the accumulated ETFs there (accumulated ETF means no dividend distribution).

I think this save me hassle of open non-malaysian account, USD TT.
As the only "cost" I see is on the one time purchase/sale charge on brokerage fee/stamp duty/currency rate,
but it is conveniently just paid from my existing MYR account in my local brokerage (only problem is cannot offset purchase/sale contract).

thanks for any feedback.

p.s one side note that I realise on US domiciled account is that we cant run away from US estate tax if amount is larger than USD60K (I am small fish but for anyone with long term plan there)

This post has been edited by asimov82: Oct 29 2016, 10:24 PM
asimov82
post Nov 10 2016, 12:02 PM

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QUOTE(wongmunkeong @ Nov 9 2016, 10:12 AM)
For those worrying (maybe just me) about IRS' estate tax on NRA's "amount >USD60K"
Bolded = my highlighting of what i think is pertinent to IRS' categorised as NRAs (non-resident aliens), like me,.

Just to share on TDAmeritrade Asia (ie. SG) response on estate taxes (ie when i die, my assets with TDAA macam mana)
"
TD Ameritrade Asia Pte. Ltd. is registered with ACRA in Singapore and our accounts are considered as domiliced in Singapore. The assets in an account will be distributed in accordance with Probate after receipt of all required information. We are however not tax professionals and hence cannot confirm if US Estate Taxes will or will not apply to any single individual. Please consult a professional tax advisor on whether US Estate Tax applies to your personal tax profile.

Any Estate Tax payable in Singapore is a matter between the Estate and the IRAS. The following link may be of some assistance with respect to IRAS Estate Tax https://www.iras.gov.sg/irashome/Other-Taxe...ty/Estate-Duty/ however, we strongly recommend that you speak with your professional tax advisor to ensure you are fully informed.
"
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thanks for the effort, sound like they never handle such real scenario before...
to me, if the asset is regulated/protected by country A then it's considered tax-treated as in country A. (just my no-basis assumption...)

asimov82
post Nov 11 2016, 10:16 AM

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ireland got tax treaty with us, so
dividend => (-15%) => etf => we

if us-domiciled,
dividend => (-30%) => etf => we

we need to calculate the "effective rate" in term of sum of annual expense ratio plus this div tax, for the actual number of "annual holding cost"..

other than that, come the "fund transfer cost" and "transaction cost"...

asimov82
post Nov 17 2016, 08:40 AM

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QUOTE(AhGoo @ Nov 16 2016, 03:35 PM)
ASHR, DXJ, EEMV, FEMDX, IYW, MDY, VWO, XLY
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mind to explain why pick these etfs??

look like exposure to japan, china, em, us tech, us mid, xly??
asimov82
post Nov 17 2016, 08:43 AM

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QUOTE(prince_mk @ Nov 15 2016, 09:39 PM)
anyone have idea how much roughly if I wire money from Sg to US ?
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want to know as well,
for TD and IB, is it cheaper to send from SG than MY??

asimov82
post Nov 17 2016, 09:06 AM

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QUOTE(Ramjade @ Nov 17 2016, 08:47 AM)
For IB, SG la of course.  Funding is practically free as you can send in SGD. Then use their exchange to convert to other currency. People say their currency changer is cheaper than banks.

I believed for TD, you will need to send in USD and some bank in Singapore like DBS let you deposit in USD notes. So it shouldn't be that expensive.
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thanks, even having SG bank with USD account, still need to TT to TD? seem to be costly for small amount.

btw, opening the IB account is domiciled in SG?

asimov82
post Nov 17 2016, 09:10 AM

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QUOTE(wongmunkeong @ Nov 17 2016, 09:05 AM)
FYI - TDAA takes SGD from SGD banks
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so practically I can access us stock without USD TT charge??

MYR account <bank transfer> SGD account <bank deposit/withdraw> IB/TDAA in SGD <convert> IB/TDAA in USD <buy/sell> us stock?


asimov82
post Dec 27 2016, 10:37 AM

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QUOTE(rjb123 @ Dec 9 2016, 02:23 AM)
In case anyone is interested - looks like another way to deposit without charges to IB can be through Citibank.

As USD funding is done to Citibank USA, if you have a Citibank USD account in Malaysia you should be able to transfer USD instantly without any charges.

Limits seem to be $12500 for normal account holders and $25000 for Citigold customers, can do it online too and not necessary to go to the branch.

Will give this a go and report back next week!
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boss, hows ur experience with citi??
asimov82
post Dec 27 2016, 09:24 PM

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QUOTE(rjb123 @ Dec 27 2016, 11:35 AM)
Confirmed with RM - it isn't available for deposits to institutional accounts.

So you can still TT from Citi USD auto IB but normal TT charges apply. At least they have a decent limit ($25K I think) and can be done online unlike Maybank where I need to visit the branch
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so it means as individual we can online transfer between the MYR/USD account as normal payment and transfer,
isnt it is free for these? y still consider as TT and charge TT? how much is the charge?

as stated in website:
https://www.citibank.com.my/english/deposit...alMoneyTransfer
"No additional fees or charges required." hmm.gif

asimov82
post Dec 27 2016, 10:15 PM

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QUOTE(rjb123 @ Dec 27 2016, 09:28 PM)
I'm talking about transferring from Citibank Malaysia to Interactive Brokers Citibank account in US, not between own accounts.

Transferring between own accounts (USD to MYR) has better rates than Maybank too.
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ic, so the cheapest way is from own MYR citi account to own USD citi account, then to IB account.
last one is not us local bank transfer?
thanks.

asimov82
post Dec 27 2016, 10:33 PM

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QUOTE(rjb123 @ Dec 27 2016, 10:18 PM)
From MYR yes, although probably same if you transfer from MYR directly to USA

Citibank USD account will be held in Malaysia so that part would still be a foreign TT.

Cheapest (free) is actually if you have an account overseas where IB also has an account e.g. GBP in UK or SGD in SG
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Oh, I think I get it wrongly, the USD account mentioned here is the foreign currency account, that's is held in Malaysia.

I am mistaken it as US account, which we do fund transfer as in "Citibank Global Transfer".
thus, I am surprise and want to know how to open citi account in US locally.

same idea for open actual SG citi account and do "Citibank Global Transfer" to it.

thanks anyway thumbup.gif
asimov82
post Jan 11 2017, 06:54 PM

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I am thinking of the Citibank approach:

1. open MY Citibank account
2. open SG Citibank account
3. move fund around using the "global fund transfer"

anyone try this before?

asimov82
post Jan 20 2017, 12:22 PM

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hmm... anyone do the calculation on using the local brokerage platform of foreign stock trading, to buy and hold etf for long term?

presumption is that the cost is lower without TT fee and you can buy the etf counterpart (accumulating type) from london stock exchange.

asimov82
post Jan 22 2017, 01:44 PM

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QUOTE(RayleighH @ Jan 21 2017, 08:07 PM)
Like I said earlier. I am scaredy cat. My guts cannot stomach such anxiety that comes with such investment/trading.
Bro, I don't have the money previously, how to invest? I would have loved to have invested back when USD 1 = MYR 2.9 but still no funds also la. cry.gif

Then again, you're basing on hindsight. What if you expect MYR to strengthen in the future but instead it weaken further to USD 1 = MYR 5++? What if it stabilizes at USD 1 = MYR4.5 for the next few years? Then do you keep on waiting forever? I thought this is where the concept of DCA comes into play? Maybe the delta between the current forex rate and future might be rather big that infrequent DCA wouldn't be much of a help.

I don't know, since all these are things that I've read only and not actually experiencing it. Maybe those who have actual experience can chip in on their experience on how this will affect anything if the plan is for long term holding. Just do note, I am not looking for short term gains nor am I looking into actual forex trading.
At the moment, I have not started with any broker. Still trying to get a feel of what each brokerage fee's and T&C are like before delving any deeper since local brokers have some sort of minimum trade requirement in order to avoid some fee on the divident or something (see, I still have to study more. So many things still in the gray area to me). If you have any recommendation, I would be very happy to listen. So far, in this thread, people have discussed foreign: TDAA, IB, DBS V, Standard Chartered SG and Maybank KE; local: iTrade, HLeB. (I think I've got them all here but then again, I may have missed a few)
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you can include the calculation of buy ILP fund which act as feeder fund into us/world/etc fund (I know some of the local insurance company offer that in regular/single premium plan), just remember that the cost is quite high which about 5% upfront, 1.5% annual fee, and your cost of insurance and monthly fee (anyway, you can use your credit card to pay it and start with small amount).
asimov82
post Mar 4 2017, 09:39 PM

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QUOTE(Ramjade @ Mar 4 2017, 07:55 PM)
Pick either 1
(1) priority banking with SCB SG
(2) saving plan of SGD400/month for 10 years or SGD500/month for 5 years but money is locked for 10 years. Both supposedly give you 3% return
(3) Buy UT from them worth SGD50k at 3% service charge
(4) Have mortgages with them.
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u mean cant open other bank saving account and then open SCB SG trading account only?
must SCB SG saving account a requirement?


 

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