Investing in International Stock Markets from Chile

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McKaig
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Investing in International Stock Markets from Chile

Post by McKaig » Sun Mar 23, 2014 12:30 pm

Can anybody recommend online banking/investment services here in Chile that will allow me to maintain a USD account, and trade US securities (Not mutual funds)? I have not chosen a bank yet because my visa is still being processed, but I will base my decision on the strength of their web-broker system and access to markets.

I do have self directed trading accounts back home in Canada, but I'd rather avoid the international transfers.. and keep the money in Chile.

Thanks!

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fraggle092
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Re: Investing in International Stock Markets from Chile

Post by fraggle092 » Sun Mar 23, 2014 10:45 pm

You could do a forum search.
But for a USD account, not much chance, you will probably have a hard time getting a CLP checking account. To find out why read the posts, I recall some by Charles the admin on this topic.
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El Lechero
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Re: Investing in International Stock Markets from Chile

Post by El Lechero » Mon Mar 24, 2014 9:09 am

McKaig wrote:Can anybody recommend online banking/investment services here in Chile that will allow me to maintain a USD account, and trade US securities (Not mutual funds)? I have not chosen a bank yet because my visa is still being processed, but I will base my decision on the strength of their web-broker system and access to markets.

I do have self directed trading accounts back home in Canada, but I'd rather avoid the international transfers.. and keep the money in Chile.

Thanks!
Yeah I dont mean to rain on your parade, but what type of visa will you be on? Good contract? because based on what i have read your decision will be more likely based on what bank actually opens an account for a gringo. Welcome to Chile.

McKaig
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Re: Investing in International Stock Markets from Chile

Post by McKaig » Mon Mar 24, 2014 9:38 pm

Guys, don't worry about the odds of me getting a CLP checking account lol.. I have read this forum pretty extensively, and have a good idea about how things work here. In the past 4 months we've setup a subsidiary of a large publicly traded company from the US, and we are fully functional and operational. I won't even get into the details of how difficult it has been lol.. Im trying to forget about it.

But back to the question....

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Re: Investing in International Stock Markets from Chile

Post by El Lechero » Mon Mar 24, 2014 10:50 pm

McKaig wrote:Guys, don't worry about the odds of me getting a CLP checking account lol.. I have read this forum pretty extensively, and have a good idea about how things work here. In the past 4 months we've setup a subsidiary of a large publicly traded company from the US, and we are fully functional and operational. I won't even get into the details of how difficult it has been lol.. Im trying to forget about it.

But back to the question....
And it only took you four months? Pretty quick really. Back to the question I would like to know the answer too, no doubt it is very complicated being Chile, I asked once in Santander and someone was going to get back to me, they never did, but I had to be evaluated asked my risk profile etc etc, I was just having a quick look on internet and couldnt see any easy way of doing it, the likes of banchile inversiones for example have some convoluted way of doing it. It may not even be possible, god forbid you could do it yourself, got to keep letting the fund managers getting a cut. yeah would be good to know from someone...

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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Nov 30, 2016 6:08 pm

Bumping the thread with the same question. The search gives completely nothing by the way.

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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Nov 30, 2016 10:26 pm

Ah, nevermind, it seems that it's much easier to open Schwab International.

Are there taxes on the US side? If yes, would it be solved with the US-Chile tax treaty when it's finally done?

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Thu Dec 01, 2016 2:05 pm

Still researching and one more update: Saxo Bank (Denmark) looks like a much better option.

It doesn't require $25k initial deposit for foreigners like Schwab, not located inside the US tax hell (15-30% tax for dividends from foreign investments in the US), and is more flexible overall. You can even buy some Vanguard with it.

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Re: Investing in International Stock Markets from Chile

Post by jehturner » Fri Dec 02, 2016 10:03 am

I have been looking into this too (more for ETFs than stocks). The closest thing I've come across (just in passing) to an international broker in Chile is Larrain Vial, but their Web site looks rather primitive. Also, if the local fees are anything like those for mutual funds, they would be best avoided. You probably will be better off with an offshore service, but the options are also very limited there unless you have a large sum to invest. I've read that Americans should look for a US service for tax reasons and everyone else should avoid the US due to abnormal inheritance tax assessed on US assets. My Danish colleague describes Saxo as "dodgy", but I don't have further information and might ask more about that. There is also TD International in Luxembourg, which seems quite a good service -- but note that they have a clause in their terms & conditions pretty much saying that if someone breaks into their system and steals your funds, that's your problem and not theirs! Finally, if you have 60k GBP to put down, HSBC Expat in Jersey has an investment service (I closed my account with them some years ago when they suddenly raised the minimum balance from 0 or 2k to 25k GBP at about 2 weeks' notice by the time the letter arrived!); unfortunately I don't have that much to put down. Let me know if you find other options, but I have looked quite hard and all the information suggests that that's almost all of them (there was also one called DBS Vickers, which seemed to have some complication with access to the UK market). At least in the UK, most domestic retail services won't touch non-residents due to the compliance effort involved.

James.

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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Fri Dec 02, 2016 10:53 am

Thanks for the info!
Yes, probably Saxo is dodgy (opening accounts that easy!) but I asked on an investment forum and they recommended it over Schwab. Anyway I have a trust in Denmark's regulations over their bank from 15 biggest ones.

I also found this site, the owner keeps the info up to date (US, UK, HK, Singapore brokers):
https://the-international-investor.com/ ... roker-list

But what I've read on this site and other investment sites - there are lots of pitfalls when it comes to semi-hidden fees. So be careful.

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Re: Investing in International Stock Markets from Chile

Post by admin » Fri Dec 02, 2016 11:59 am

Larrain Vial is one of the largest investment bank in the Chile, it is basically the Goldman Sacks of Chile. We do business with them for clients from time to time for various reasons. You need some serious coin to use them, and they are not a discount broker.

Really, from what I have seen, there is no discount broker type service in Chile, and the few banks that I have see that attempt it their IT systems are straight out 1994 (unencrypted flash sites that hardly work).

You can buy international stocks through most bank brokerages that are traded on the Chilean exchanges including foreign ETF's, but you have to call it in. In dollars it seems you have to buy the dollars, paying bank exchange rates, then place the order. Hardly lends itself to day trading, when you have to guess what the price is at any moment. I don't trade foreign stocks on Chilean systems, just due to the hassle and costs. I stick to chilean stocks for chilean brokerages.

TD trade in luxenberg seems to be the best mix of tech, costs, and so on, and as I understand are owned by ameratrade. Saxo is really expensive. they charge you just for maintaining stock portfolio with them. Not good for buy and holders. I have not gotten around to open an account with them TD trade, but they seem to both accept Americans and Foreigners, and not many international brokerages want to talk to Americans anymore.
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Fri Dec 02, 2016 12:41 pm

admin
Oh, awesome, thanks! Here's a discussion about TD vs. Saxo with many little details.

TD updated to 0% last year + some flat fees while Saxo has 0.12% annual custody fees.
http://int.tddirectinvesting.com/sites/ ... PDF-EN.pdf

And 0% tax if you're not a Luxembourg resident. Looks perfect.

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