Investing in International Stock Markets from Chile

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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Tue Oct 24, 2017 1:07 am

I finally decided to move forward and got a rejection from TD (now internaxx.com) – they don't work with Chilean residents or citizens. Waiting for a reply from Interactive Brokers now.

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RuneTheChookcha
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Re: Investing in International Stock Markets from Chile

Post by RuneTheChookcha » Tue Oct 24, 2017 10:00 pm

Whereas, since the 911, all these nice brokerages have been loving to invent new restrictions for foreign clients;

Whereas, since the last (biggest one) financial meltdown more and more small to medium size brokerages are merged with the BIG ones;

Whereas, the resulting SMALL number of the BIG ones, as worldwide bank and financial regulations multiply, tends to restrict, suspend, close, reject or put limitations on any new or existing international accounts;

Fingers on one hand would be too many to count the remaining [reliable] ones.

Guess where all these "third world" folks, willing to park their investments, now tend to concentrate? Seems that at these remaining, [very] few. And what happens when the critical mass of "third world" accounts accumulates in one place?.. I would be willing to know...

(disclaimer: that was just a series of random thoughts, disregard at will)

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Re: Investing in International Stock Markets from Chile

Post by admin » Wed Oct 25, 2017 9:30 am

Space Cat wrote:
Tue Oct 24, 2017 1:07 am
I finally decided to move forward and got a rejection from TD (now internaxx.com) – they don't work with Chilean residents or citizens. Waiting for a reply from Interactive Brokers now.
Interesting.

I applied for an account like last year. Made a mistake filing in the application, but they were willing to open the account, if I corrected the application. I had other things going on, and never got back to it.

About two months ago, noticed TD luxemberg was bought out, but decided to try again. Sent in a new application, and never got a response from them.
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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Oct 25, 2017 9:38 am

Interactive Brokers responded positively, by the way. According to their own data and some reviews on forums, they have the lowest costs:
https://www.interactivebrokers.com/en/index.php?f=13869
https://www.interactivebrokers.com/en/index.php?f=1590

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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Tue Nov 28, 2017 11:34 pm

Applied for an account at Interactive Brokers – a ton of forms but it's possible to create a joint account for 2 people from the start. Their site is not quite user-friendly and their desktop app is a Java-based monster from the 90s.

Additionally, applied for Saxo which has a nice modern UI, simple registration, and great support according to reviews. But then noticed a couple of days later that they don't work with Latin American residents directly unless you are planning to invest 100,000 euro from the start. Their registration form suggests using one of their Latin proxies, for Chile it's http://www.mbitrading.cl/

MBI Trading doesn't look too expensive for long-term investment and uses Saxo's trading platform but it's pricey for me to convert money into CLP. Also Interactive Brokers are still cheaper than anything.

Fun fact: Saxo doesn't work directly only with LatAm countries – it looks like you can open an account from Uzbekistan or China.

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Re: Investing in International Stock Markets from Chile

Post by jehturner » Wed Nov 29, 2017 9:05 am

Space Cat wrote:
Tue Nov 28, 2017 11:34 pm
Their registration form suggests using one of their Latin proxies, for Chile it's http://www.mbitrading.cl/

MBI Trading doesn't look too expensive for long-term investment and uses Saxo's trading platform but it's pricey for me to convert money into CLP.
That seems a potentially-interesting link that i hadn't come across in the event of future problems, thanks.

Internaxx (then TD) was opening accounts for Chilean residents as recently as last year...

There were a couple of things that put me off IB slightly. One is that non-Americans are advised to keep investments outside the US (which branch is this?) for reasons related to US estate taxes. Another is that their credit rating is so-so (currently BBB+; at least they publish it) and they seemed keen on more exotic trading...

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Nov 29, 2017 9:28 am

jehturner wrote:
Wed Nov 29, 2017 9:05 am
Internaxx (then TD) was opening accounts for Chilean residents as recently as last year...

There were a couple of things that put me off IB slightly. One is that non-Americans are advised to keep investments outside the US (which branch is this?) for reasons related to US estate taxes. Another is that their credit rating is so-so (currently BBB+; at least they publish it) and they seemed keen on more exotic trading...
Internaxx replied me a month ago that they don't work with Chilean residents anymore.

IB has a branch in the UK. Thanks for the credit rating tip – I was not aware of it. But I don't have much choice at this moment anyway, MBI could become an option in future though (cuenta corriente requirement, as usual).

Also I just found a forum about trading in Chile:
http://www.chilebolsa.com/

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Nov 29, 2017 6:56 pm

del

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Re: Investing in International Stock Markets from Chile

Post by jehturner » Wed Nov 29, 2017 8:03 pm

Space Cat wrote:
Wed Nov 29, 2017 9:28 am
Thanks for the credit rating tip – I was not aware of it.
Of course I don't think you're supposed to be exposed to that risk in principle (at least for simple trading), if they're keeping your assets separate from theirs as they should, but still... The other thing about IB was just that their platform looked a bit overcomplicated for someone wanting to buy and hold ETFs without getting into the minutiae of day trading.

Those mbitrading fees don't look high to me for modest amounts; you'd have to be trading 5 figures at a time to do better with Internaxx(?).

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Nov 29, 2017 9:08 pm

According to that forum, it's 0.2–0.35% at brokers and investment-oriented banks (BCI, BICE, Consorcio) but 0.6–1% in general-purpose banks like Santander or Banco de Chile. Also, most of them are charging CL$3-4k once a day if you trade this day (except for BICE).

But I can't find ETFs domiciled outside of the US – it's mostly iShares by BlackRock (US ETFs mean 30% tax on dividends because Chile is still waiting for the tax treaty). Probably MBI+Saxo is one of the few ways to buy something like Vanguard's ETFs domiciled in Europe.

There's also a new broker in Chile – Spanish Renta4 but I can't find their list of available ETFs. Their PDF with fees lists many European stock exchanges, so it could be a good option too.

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Re: Investing in International Stock Markets from Chile

Post by papageno » Wed Nov 29, 2017 9:46 pm

Space Cat wrote:
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.
A year ago, almost to the day (tomorrow) you mentioned Schwab International. Any further thoughts along that line?

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Re: Investing in International Stock Markets from Chile

Post by at46 » Wed Nov 29, 2017 10:15 pm


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