Chilean Stock Market & Brokerages

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Chuck J 3.0
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Chilean Stock Market & Brokerages

Post by Chuck J 3.0 » Tue Jun 14, 2011 11:24 pm

Hola pinksters! :D

I'll try to be concise. When I finally return to Chile a concern of mine is to try insulate myself as much as possible from the US financial system. I do not want to live in Chile and have my money be under the control of US banks and brokerages and have a five thousand mile supply line. I understand the three country idea for banking, but, are there brokerages in Chile similar to E-Trade or AmeriTrade that can be used to trade Chilean & Southern Cone stocks and options?

I'm not worried so much about the requirements at this point, i.e. visa or citizenship statuses needed to be allowed to open such Chilean accounts. That can be overcome and bureaucrats satisfied. My question is more in the line of: Do they exist? Advisability of using them? Bad idea? Use a third country brokerage? Comments?
"Betting against gold is the same as betting on governments. He who bets on governments and government money bets against 6000 years of recorded human history." - Charles de Gaulle

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Re: Chilean Stock Market & Brokerages

Post by admin » Tue Jun 14, 2011 11:30 pm

Santander allows me to buy directly from my checking account in the online interface. Never used it, but think it is like 5000 per trade. Might try it just to see
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RuneTheChookcha
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Re: Chilean Stock Market & Brokerages

Post by RuneTheChookcha » Tue Jun 14, 2011 11:40 pm

Just for fun, just walked once in one of the offices of EuroAmerica.cl a couple of years ago (when I had not even a temp. residency -- just a tourist card, passport and a provisional RUT) and after 10 - 15 minutes of talking (in English) was given an application to fill in. Never did, though. Still have this app. Looks as a standard stock trading brokerage app. -- much like in the U.S. They have an account at shittybank (U.S.), btw, so you can wire your initial account funding without the money even leaving the U.S.

Edit: also -- they have a number of mutual funds to put your money in.

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eeuunikkeiexpat
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Re: Chilean Stock Market & Brokerages

Post by eeuunikkeiexpat » Wed Jun 15, 2011 12:08 pm

Runey, it is known that a foreigner can open a brokerage account under a tourist visa with just a RUT but I believe these accounts are USD-only accounts (someone needs to confirm or deny this). I believe Chuckster is looking for a full blown in-Chile brokerage account denominated in CLP effectively outside of US capital controls (the US authorities claim that technically all world USD accounts are under their purview as the funds must clear the US Fed system at some point).

Chuck, I've seen ads for a Chile-based Forex account so that may be something to also check out.

Input from others with knowledge and experience in this area please!
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RuneTheChookcha
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Re: Chilean Stock Market & Brokerages

Post by RuneTheChookcha » Wed Jun 15, 2011 2:15 pm

A full blown Chilean brokerage account, denominated in CLP -- that was what EuroAmerica offered. As I had no Chilean "cuenta corriente" -- initial account funding by cash was allowed. The starting deposit would be 1 million CLP (cash). The U.S. correspondent account was offered for the convenience, as it would allow to make a wire transfer not u.s. -- > Chile but U.S. --> U.S., then the money would be put towards your trading balance. To get the money out of the account would be by check (Chilean). Note: they mentioned "anti-money laundering" paperwork, should the initial funding be large, no matter if you fund it in Chile or via the wire to their U.S. based citi account (USD denominated).

Chuck -- if you go to the Santiago Stock Exchange website -- they list all Chilean accredited firms. Some of them are "investment depts." of Chilean banks, but mostly -- purely brokerage/trading/investment houses. Visit their websites one by one to have an idea of what they offer.

Pink underwear gives you 5 free trades, anyway. Good luck.

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Re: Chilean Stock Market & Brokerages

Post by eeuunikkeiexpat » Wed Jun 15, 2011 2:41 pm

RuneTheChookcha wrote:A full blown Chilean brokerage account, denominated in CLP -- that was what EuroAmerica offered.
Whoooa. OK, I'm interested. We need to see if under a tourist visa, tourist visa RUT one can still get this account. Given $hitty is one of my main USA banks, it would be IDEAL (in Chile, nothing could be THAT EASY :mrgreen: ).
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RuneTheChookcha
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Re: Chilean Stock Market & Brokerages

Post by RuneTheChookcha » Wed Jun 15, 2011 3:25 pm

Note: There still could be some misunderstanding back then, when I talked to them (and they talked to their management by phone) regarding the fact that it was indeed fully "full-blown" account. There might be some (or many?) limitations for a "tourist", as the lack of ATM cards attached to the account, or your ability to use all the trading tools provided by the firm (mail, fax, telephone, Internet). You have to visit them in person and report back -- should you have any success. As far as I remember -- the maximum new account funding (with no questions asked regarding the source of funds) was arouind 4 million CLP cash only.

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RuneTheChookcha
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Re: Chilean Stock Market & Brokerages

Post by RuneTheChookcha » Sat Jul 02, 2011 12:02 am

Chuck J 3.0 wrote:...I understand the three country idea for banking, but, are there brokerages in Chile similar to E-Trade or AmeriTrade that can be used to trade Chilean & Southern Cone stocks and options? ...
One more thing. While using a U.S. brokerage firm(s) -- your "unused" money are usually swept into some sort of a money market fund(s), and that is arranged through your broker's clearing house, generally. Their investment portfolio could be either domestic, or it might be internationally diversified -- and thus spread over several countries and various financial instruments. How do you think your "unused" money are invested, and "controlled", should you open a trading account in Chile? Is it much "safer" than in the US? One has to think about that, and make some basic research, IMO.

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Chuck J 3.0
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Re: Chilean Stock Market & Brokerages

Post by Chuck J 3.0 » Mon Jul 04, 2011 12:15 am

eeuunikkeiexpat wrote:...... I believe Chuckster is looking for a full blown in-Chile brokerage account denominated in CLP effectively outside of US capital controls ..... Input from others with knowledge and experience in this area please!
Exactly. Thanks
RuneTheChookcha wrote:
Chuck J 3.0 wrote:...I understand the three country idea for banking, but, are there brokerages in Chile similar to E-Trade or AmeriTrade that can be used to trade Chilean & Southern Cone stocks and options? ...
....... Is it much "safer" than in the US? One has to think about that, and make some basic research, IMO.
You're right. I think using a Chilean Brokerage is just as dangerous or more so. It may be indulging in fantasy on my part thinking that I could go downtown and chew on Mr. Chilean yuppie broker if something goes wrong. - It's Chile, what could possibly go wrong? ;-) - But I would just rather not have any money is US banks, brokerages, etc. Personal preference.

I'm more of a hard money person, not a "keep money in the bank" kind of guy. So any currency I have in a brokerage account would be strictly used for speculation, and not savings. As for safety, after all it's only electrons on a computer screen and is, as far as I'm concerned, completely ephemeral until it's in my hot little hands.

I haven't had time lately to look into Chilean brokerages, but I will be doing research on it.
"Betting against gold is the same as betting on governments. He who bets on governments and government money bets against 6000 years of recorded human history." - Charles de Gaulle

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