Hi,

I would like to ask how can i invest in US S&P 500 ETF in Malaysia via authorize Malaysia broker. The ETF i want to invest such as "Vanguard S&P 500 ETF".

Previously i had been advised to invest via the platform "Interactive Brokers". I am afraid if anything happen i might lost all the capital since it not govern under Malaysia SC.


Thanks

Goto MIDF invest, it's regulated in this country. It's own by PNB.

http://www.midfinvest.com/

Thank you is it got more option beside MIDF ?

As far as I know this, there could be other mutual fund? or investment platform that might cover that index, not sure. Other experience investors here can inform what other platform they use that's regulated in Malaysia.

Just go with interactive broker. Just because something is not regulated by Malaysian SC does not mean its not safe. They are regulated by US, UK, SG version of SC. Now who do you trust more? Malaysian SC or US, UK, SG SC? I will trust US, UK, SG SC more than Malaysia reason Malaysian SC is a joke. Put TD and etoro into blacklist? Come on it's a joke especially they are legal services.

Good luck paying usd5.00 Vs usd0.35 by giving MIDF free money. Interactive broker fees is only USD0.35/transaction.

Of course if you want peace if mind, I have nothing i say other than you are giving away free money to midf.

I have been usig IBKR for almost 3-4 years already and I will continue to use them going into the future. I don't care what Malaysian govt thinks. Ibkr is one of the fundamental sound brokerage. They are damn kiasi (risk adverse) which you as user should feel good about. Think of it like public bank which is super conservative. Same thing only difference it's a brokerage. Period.

Got. If you don't mind stuff which is regulated by sg govt, FSM sg, moomoo, tiger.

I will recommend moomoo if you don't want to use Ibkr.

This post has been edited by Ramjade: Dec 24 2021, 12:00 PM

Thank you for the advise. Assume i use IBKR when i perform withdrawal into my local Maybank account, if i perform the withdrawal too frequent it will cause my Maybank account being blocked ? As i heard some case the local bank might block your bank account due to suspicious bank transaction.

First off I am from Spore. FSM Msia do offer ETF but the fees are high compared to IKBR and others. Unfortunately they do not offer FSM Spore ETF RSP program which allow you to put small capital upfront buy and sell later with lower fees.

https://www.fsmone.com.my/etfs/get-started/stock-fees

If you don't mind pay higher fees you can consider but for me I will not as the fees are too high. Lucky FSM Spore has this ETF RSP program where with as low as 50 I can buy into an ETF and also through same program sell the fractional shares with low fees. I am testing water on this program right now. Lose at most 50 still bearable at least to me.

No issue. Just that get ready to loose free money to Maybank. (TT fees, markup exchange rate by Maybank - less RM received as some amount have been take by Maybank, intermediate agnwt fees).

Keep in mind, coming Jan 2022, all overseas dividend will be tax. So if I will you, I will just keep my money overseas unless you really need to use it.

You don't want to loose free money, open sg bank account, concert USD or GBP into SGD via IBKR at spot rate (real time market rates used by banks for themselves without any hike up) for usd2.00/transaction. Withdraw the SGD to cimb sg. Cimb sg to Malaysia have one of the best rate (sometimes even matching money change rate)

This post has been edited by Ramjade: Dec 24 2021, 12:12 PM

IBKR USD --> CIMB SG SGD --> CIMB MY MYR, you will need to convert twice.

IBKR USD --> Wise MYR, just convert once.

Thank you

For the ETF i consider, i plan for long term investment which could more than 5 years. That why the platform safety issue is my concern

Noted,

Thank you for the advise about oversea dividend will be tax.

I wonder i never stay / work in SG i allow to open account in Singapore ?

Follow the steps below.
https://ringgitfreedom.com/banking/opening-...for-malaysians/

Thank you

Hi, you mean ALL foreign ETF/stock dividend will be tax next year? What would be the mechanism?

I want to add 1 more tip,

If u want to invest into S&P 500 just go for CSPX so u can save on the tax since we are foreigner investors

Yes. On all income from overseas. If you bring the money back to Malaysia. For first 6 months flat rate of 3%. Subsequently in July onwards additional money brought back add onto your current income tax. Govt desperate. No money already hence come out with this tax.

If its capital gain, no tax. You need to keep all brokerage statement starting next year.

It's all over the news.
https://www.theedgemarkets.com/article/cove...me-step-too-far

Latest based off Google.
https://news.bloombergtax.com/financial-acc...-sourced-income
https://www.crowe.com/my/insights/taxabilit...-sourced-income

This post has been edited by Ramjade: Dec 24 2021, 01:53 PM

Many Malaysian IBs/ brokers give access to US Market via their global trading. CGS Cimb, Maybank, Midf etc.. just email them n compare.

The brokerage cost is less competitive vs interactive tho.

Don’t always think about withdrawing from international broker is hassle la expensive la.

You invest for your end game and usually that is a once or twice in a lifetime event. You don’t buy SPY to sell every few months. That will make your broker rich not you. In that case I will choose IBKR to enrich them less with lower fees anyway.

Governed by SC of Malaysia does not mean if it goes bankrupt you will get your foreign securities back. Usually all also held in trust by a 3rd party. In case of IB at least the likelihood you will encounter a broker going bust is microscopic. But a local uncompetitive one….on the other hand

Just use those well known broker as stated above. U wanna invest in index i believe is for long term so withdrawal or transaction fee would not be bothersome.

I am not sure on Msia authorities take on investing regulations but for Spore MAS it impose quite a strict set of rules. For FSM Spore, every investor actually have to undergo a yearly renewable Customer Knowledge Assessment (CKA) & Customer Account Review (CAR). Upon pass will you be allowed to transact in FSM platform valid for one year. The announcement below.

So sometimes platform safety come at a cost as the FSM need monies to expend effort (monies and manpower) to adhere to the rules and keep in line with govt authorities regulations. IBKR and other etc that are based overseas are not subjected to such local country strict regulations hence they can offer you very good rates.



This post has been edited by sgh: Dec 24 2021, 09:29 PM