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Author Topic: Anyone here invest offshore?  (Read 30719 times)

Patrick

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Anyone here invest offshore?
« on: February 06, 2015, 10:11:28 am »
I'd love to hear some details. Do you do it through a local broker/foreign broker? Anything else you could add would be great.

Thanks,

Patrick
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Moneypenny

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Re: Anyone here invest offshore?
« Reply #1 on: February 06, 2015, 11:03:15 am »
Yes, but that's the big money, left to the professionals, don't do it myself.
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[email protected]

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Re: Anyone here invest offshore?
« Reply #2 on: February 07, 2015, 07:40:10 pm »
I use Td Direct investing (formally Internaxx).  Can be found here.  http://int.tddirectinvesting.com/  I'm very happy with them and has served me well over the years.

Although i must admit, there is a far better selection of local brokers offering international products now than when i first opened my offshore account.  I haven't done detailed research, but i'm sure you can find one that offers you want you need.
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jaDEB

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Re: Anyone here invest offshore?
« Reply #3 on: February 08, 2015, 11:00:05 am »
I do not invest offshore, Only invest in 100% SA shares. Take your pills jaDEB....monumental pause ...............  :wall: ......

I invest in JSE only, but currently will only put my monies is shares that has high offshore income. i.e. NASPERS / ASPEN.
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Moonraker

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Re: Anyone here invest offshore?
« Reply #4 on: February 08, 2015, 01:29:32 pm »
See What's the best way to invest offshore?

Quote
If you value simplicity, and don’t particularly want to expatriate your assets, there are a number of rand-denominated offshore unit trusts accessible locally. The advantages of this route include lower entry levels in terms of how much you have to invest and relatively few administrative requirements.

You can also invest without the need to use your offshore investment allowance, which means you don’t need to buy foreign currency or get tax clearance from SARS. The investor gains access to offshore markets through an asset swap mechanism, although they are still exposed to currency fluctuation.

I am too old and lazy too emigrate (did it twice before, once to Germany and once to Portugal, like Orca), but would go the asset swap route as a ZAR based investor. Charges are pretty high whatever you choose.


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Patrick

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Re: Anyone here invest offshore?
« Reply #5 on: February 09, 2015, 02:14:15 pm »
Thanks Moon and xxx I'll check them both out. I'm hoping to avoid the fees and hassle by using my US bank account. I can choose to get paid in SA or in the US, so hopefully I won't have to pay money to convert currency too.
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conradl

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Re: Anyone here invest offshore?
« Reply #6 on: February 11, 2015, 06:26:10 am »
Hi Patrick,

I've started using Standard Bank's Webtrader account. I think its very good as there is no minimum limit that you can start at unlike PSG that wasn't interested unless I had minimum R250k and then they invest it for you...

A few lessons I have learnt in the first year:
1. It's a USD based account so if you buy shares in Germany for example you are subject to USD/EUR exchange rate (duh! I didn't consider that initially). And in the last year that has caused some destruction in value for me. Bought shares at 1.24 EUR/USD and its now 1.13 EUR/USD and even though I'm making a profit, the exchange rate has caused a significant loss. SBG did tell me that they are launching a EUR based account in Q1 (hopefully) and then I hope they can transfer my EUR shares to that account.
2. The fees to transfer money overseas is significant. R200k will cost you R800-00 approximately. And obviously as per standard Bank operation 1% difference between the USD/ZAR spot rate.
3. Monthly fees are linked to the amount invested. I think its 0.005%.
4. Trading fees aren't cheap about $20 per trade

I have been buying myself some SCHD (Schwab Strategic Trust) dividend ETFs as I'd like an overseas income stream and to recover the fees expended.

You are lucky to have a US bank account or an overseas one for that matter...
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JohnnyH

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Re: Anyone here invest offshore?
« Reply #7 on: July 30, 2015, 02:27:12 pm »
Quote from: conradl on February 11, 2015, 06:26:10 am
Hi Patrick,

I've started using Standard Bank's Webtrader account. I think its very good as there is no minimum limit that you can start at unlike PSG that wasn't interested unless I had minimum R250k and then they invest it for you...

A few lessons I have learnt in the first year:
1. It's a USD based account so if you buy shares in Germany for example you are subject to USD/EUR exchange rate (duh! I didn't consider that initially). And in the last year that has caused some destruction in value for me. Bought shares at 1.24 EUR/USD and its now 1.13 EUR/USD and even though I'm making a profit, the exchange rate has caused a significant loss. SBG did tell me that they are launching a EUR based account in Q1 (hopefully) and then I hope they can transfer my EUR shares to that account.
2. The fees to transfer money overseas is significant. R200k will cost you R800-00 approximately. And obviously as per standard Bank operation 1% difference between the USD/ZAR spot rate.
3. Monthly fees are linked to the amount invested. I think its 0.005%.
4. Trading fees aren't cheap about $20 per trade

I have been buying myself some SCHD (Schwab Strategic Trust) dividend ETFs as I'd like an overseas income stream and to recover the fees expended.

You are lucky to have a US bank account or an overseas one for that matter...

Hi Conradl

I am interested in the SB webtrader account as well, but I have a few (stupid) questions.

1) What is the process to transfer money overseas? Do you deposit it into the Webtrader account directly & SB then converts it to USD?
2) Is it fairly easy to buy etfs? I would like to buy 1 once every 2 months or so.
3) Does the account include historical performance of shares etc?
4) Are the trading fees % based or is the $20 the minimum trade value?
5) The monthly cost that you stated as 0.005%, is that the only cost or is there a Rand value monthly cost as well like the normal online share trading account @ SB?

It does seem to be one of the cheaper ways to invest offshore even though its more effort on my side...

Thanks in advance!
J
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JohnnyH

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Re: Anyone here invest offshore?
« Reply #8 on: July 30, 2015, 02:47:26 pm »
I should have Googled a bit more before asking...haha :whistle:

Link below regarding the SB Webtrader account for anyone interested.

http://www.moneyweb.co.za/investing/offshore-investing/offshore-trading-costs/
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Patrick

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Re: Anyone here invest offshore?
« Reply #9 on: July 30, 2015, 04:24:56 pm »
Quote from: JohnnyH on July 30, 2015, 02:47:26 pm
I should have Googled a bit more before asking...haha :whistle:

I'd have lost my job many times over in the past without access to google!

On the topic of foreign investments, I'm currently looking into opening an account with http://www.keytradebank.lu/
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gcr

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Re: Anyone here invest offshore?
« Reply #10 on: July 30, 2015, 05:31:02 pm »
Presently I am in negotiations with my broker to open a trading operation in London.
I have all the necessary documentation that needs to be signed but there are a few questions I want clarity on
 My broker advises that I don't have to get SARS approval provided I more no more than R 1.0 mill per annum
I will be able to look at my portfolio in a similar way as I can look at my local portfolio - so I would be able to watch growth/losses
However I won't be able to trade over the overseas platform myself - I will have to give my local broker an instruction (verbal or written) to buy/sell shares
It appears that I need to determine up front in which currency my portfolio should be (I want to find out if I can't have 3 trading account within one overall account - I want to be able to buy shares in Euro's GBX , or USD - I don't want to suffer exchange rate fluctuations in moving funds from one trading account to another
The funds in my trading account (s) will be totally off shore and I would have to declare such holding in my bi annual tax returns - foreign assets

However as I say I have a few questions to which I need answers and have a full understanding of the nuts and bolts before I let the money go out of the country

So as and when I get more details and clarity I will report back to this thread 
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JohnnyH

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Re: Anyone here invest offshore?
« Reply #11 on: July 30, 2015, 07:02:50 pm »
Quote from: Patrick on July 30, 2015, 04:24:56 pm
Quote from: JohnnyH on July 30, 2015, 02:47:26 pm
I should have Googled a bit more before asking...haha :whistle:

I'd have lost my job many times over in the past without access to google!

On the topic of foreign investments, I'm currently looking into opening an account with http://www.keytradebank.lu/

That looks interesting, thanks Patrick.

I guess the main reason I like SB Webtrader is the relative ease of access it gives me, or at least it looks like it would.
Costs seem reasonable and I definitely want to have a DIY solution. I really just want to buy some of the good US ETFs once in a while & forget about the money otherwise. So recurring monthly costs are a big deal for me.

I was wondering if I should buy the DBXWD etf while I think this over...it seems to "grow" whenever the Rand weakens, which I guess, is part of why I want to do this in the first place.

Any comments on the DBXWD guys? The only thing I don't like about it is the management costs as specified in the SENS announcements when they pay out dividends.
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Qess

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Re: Anyone here invest offshore?
« Reply #12 on: July 30, 2015, 07:51:28 pm »
I'm new to investing, and the DBXWD is one of the ETFs that I've chosen for my TFSA. Granted, the TER of 0.684% isn't the lowest out there, but looking at their returns over the last 3-5 years also isn't anything to sneeze at.
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Orca

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Re: Anyone here invest offshore?
« Reply #13 on: July 30, 2015, 10:43:45 pm »
Quote from: Qess on July 30, 2015, 07:51:28 pm
I'm new to investing, and the DBXWD is one of the ETFs that I've chosen for my TFSA. Granted, the TER of 0.684% isn't the lowest out there, but looking at their returns over the last 3-5 years also isn't anything to sneeze at.

You sure have a winner there Qess. That even beats STXIND over a long term. I haven't worked out how the higher TER will compare though. At a glance, it seems that the two will be the same but I'm sure Patrick will do the sums.
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Qess

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Re: Anyone here invest offshore?
« Reply #14 on: July 31, 2015, 11:19:29 am »
Quote from: Orca on July 30, 2015, 10:43:45 pm
You sure have a winner there Qess. That even beats STXIND over a long term. I haven't worked out how the higher TER will compare though. At a glance, it seems that the two will be the same but I'm sure Patrick will do the sums.

Thanks, Orca. I really hope it continues on like this, that's for sure. If Patrick does decide to do a few sums, I hope he will share the formula on how to work it out so that I can check out a few other ETFs as well :) I really want to get the biggest bang for my buck in this TFSA.
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