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Author Topic: Offshore broke4s  (Read 70042 times)

yozzi

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Re: Offshore broke4s
« Reply #30 on: January 16, 2020, 02:07:32 pm »
I've seen a lot of money transfer companies offering free transfers ie Exchange4Free, Travelwise, etc, etc so where do they get their commissions from? Do they get it when you remove funds from their accounts?
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IndustryGuy

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Re: Offshore broke4s
« Reply #31 on: January 16, 2020, 02:25:03 pm »
Can't speak for Travelwise but I see on Exchange4free's website they have 'all inclusive costs of 2% to 6%' so it seems like they are being creative with the '4free' part. In other words they don't charge commissions on top of what they charge inside the spread like the banks do. That is the '4free' part. But even at the lower end of 2%, it is not really all that much better than the banks. At 6%, rather go to the bank. Even they don't charge that much.
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gcr

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Re: Offshore broke4s
« Reply #32 on: January 16, 2020, 04:10:12 pm »
Hi IG - thanks for the heads up
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Patrick

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Re: Offshore broke4s
« Reply #33 on: January 17, 2020, 02:22:13 pm »
These are all the places I've used to transfer cash offshore, and the costs:
https://docs.google.com/spreadsheets/d/1EMgyU0OdmTHQQR4sdgsY0fJzzWvrRV2IOnKE_witg_U/edit#gid=160542905
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gcr

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Re: Offshore broke4s
« Reply #34 on: January 17, 2020, 04:26:33 pm »
Patrick - the important issue to me is how as a RSA citizen did you manage to open an account with a foreign country bank, my info is that they won't entertain such a request - I even tried Isle of Wight, Scotland, and a French Bank.
Would be interested in seeing your road map
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DaavG

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Re: Offshore broke4s
« Reply #35 on: January 18, 2020, 10:40:40 am »
Hi All,

A question, which Interactive Broker account does one choose? When opening the account online I get an option of cash, margin, portfolio margin and I think the normal cash account as I'm not trading and shares are not lent out to short sellers?

Then on bank accounts, my old man has an account with Deutsche Bank and I have asked him for a breakdown in his fees per month. He did open this whilst in Germany but they have his address for his SA residence recorded. Will revert in due course.
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Patrick

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Re: Offshore broke4s
« Reply #36 on: January 20, 2020, 09:23:39 am »
Quote from: gcr on January 17, 2020, 04:26:33 pm
Patrick - the important issue to me is how as a RSA citizen did you manage to open an account with a foreign country bank, my info is that they won't entertain such a request - I even tried Isle of Wight, Scotland, and a French Bank.
Would be interested in seeing your road map
Maybe I should do a blog post on this. I recently opened my second account in Portugal with a bank called Activo Bank. You need to be in Portugal to do this, but you don't need to be a resident.

The only requirement is that you need to find a resident help get you registered for a tax number (this doesn't mean you'll be paying tax though, it's just to get registered).

A lawyer would be the easiest way to do this, but I know people who had friends do this and even some who asked their airbnb host.

I chose Portugal because it's the cheapest place in Europe to fly to, and a really nice place, and chose Activo bank because they have no monthly fees.
« Last Edit: January 20, 2020, 09:26:24 am by Patrick »
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gcr

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Re: Offshore broke4s
« Reply #37 on: January 21, 2020, 03:24:36 pm »
Patrick - thanks for this feedback.
If you do come out with a blog, would you cover some or all of my listed curiosities:-
* How to open a foreign bank account - required to opened in person, or, can it be done from country of residency i.e. SA
* Most banks require an opening deposit in the currency of the banker
* Though most countries in the world don't enforce exchange control - here in SA they do and you are limited as to how much you can export overseas - currently a R1 million but reasons are required as to how funds will be used (buy property/holiday/business venture etc.)
* If you find a friendly bank who will open such and account for you do they have a trading platform that can feed into the NYSE; LSE, or even the DAX. If not who do they use as stockbrokers to enable you to trade over any of these exchanges.
* Given that you may have opened a foreign bank account you would have to instruct them to transfer funds to companies like Credo or SAXO and all along the line you pay fees to transfer and fees to place in your trading account. Thus fees could be a real killer

My ultimate objective would be to have a share trading account with an overseas operation where-over I buy and sell foreign country shares as quoted on the major stock exchanges but in reality can execute buy/sell orders from RSA

That about sums up where I want to be

Thanks for listening/reading
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Patrick

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Re: Offshore broke4s
« Reply #38 on: January 21, 2020, 05:29:33 pm »
I'll do my best GCR, but for now why don't you simply open an account with Interactive Brokers? You don't need a foreign bank account, you can simply transfer into them using exchange4free or clickfx or similar, and they trade on practically every market out there.

The offshore bank account is a middle man you don't really need (though I still think it's a good idea if you plan to jump ship SA).
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gcr

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Re: Offshore broke4s
« Reply #39 on: January 21, 2020, 10:30:04 pm »
Thanks Patrick - will explore further
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jaDEB

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Re: Offshore broke4s
« Reply #40 on: January 22, 2020, 04:34:51 pm »
Interesting, I have SASFIN account with local shares , and also use SASFIN to buy offshore, which is DMA.  :whistle:
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jaDEB

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gcr

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Re: Offshore broke4s
« Reply #41 on: January 22, 2020, 06:50:41 pm »
Quote from: jaDEB on January 22, 2020, 04:34:51 pm
Interesting, I have SASFIN account with local shares , and also use SASFIN to buy offshore, which is DMA.  :whistle:
jaDEB - when you sell your foreign shares where do the proceeds default to - 1) a Rand denominated account in SA 0r 2) a foreign currency account in your name in the foreign country or 3) a SASFIN account styled in your name in the foreign currency of the shares sold.

Be interested in hearing your answers
Thanks
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yozzi

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Re: Offshore broke4s
« Reply #42 on: January 23, 2020, 09:46:10 am »
Quote from: gcr on January 21, 2020, 10:30:04 pm
Thanks Patrick - will explore further

GCR - Speak to Mike Brown at ETFSA as they can assist with an offshore account which you can fund from SA by using one of the money transfer companies as mentioned by Patrick. Their rates are good and very helpful too and I'm no expert but I do have a UK bank account and I want to buy ETF's offshore and using the money transfer system seems the easiest option to me.
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gcr

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Re: Offshore broke4s
« Reply #43 on: January 23, 2020, 10:47:58 am »
Quote from: yozzi on January 23, 2020, 09:46:10 am
Quote from: gcr on January 21, 2020, 10:30:04 pm
Thanks Patrick - will explore further

GCR - Speak to Mike Brown at ETFSA as they can assist with an offshore account which you can fund from SA by using one of the money transfer companies as mentioned by Patrick. Their rates are good and very helpful too and I'm no expert but I do have a UK bank account and I want to buy ETF's offshore and using the money transfer system seems the easiest option to me.
Yozzi - thanks for the response - will also pursue this avenue. However some of the responses I have received seem to think that I want to trade in currencies and CFD's - this is not my intention at all, I want to buy shares in e.g. Royal Bank od Scotland, Ralph Lauren Clothing, RCI Hospitality etc.. So what I'm really looking for is an account from which I can fund my broking purchases initially and then having a portfolio account with a broker (as per my RSA set up) and that I can buy/sell over their platform augment and or change my portfolio as required

Hope this clarifies where I want to be and how I want to operate 
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IndustryGuy

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Re: Offshore broke4s
« Reply #44 on: January 23, 2020, 12:22:23 pm »

Yozzi - thanks for the response - will also pursue this avenue. However some of the responses I have received seem to think that I want to trade in currencies and CFD's - this is not my intention at all, I want to buy shares in e.g. Royal Bank od Scotland, Ralph Lauren Clothing, RCI Hospitality etc.. So what I'm really looking for is an account from which I can fund my broking purchases initially and then having a portfolio account with a broker (as per my RSA set up) and that I can buy/sell over their platform augment and or change my portfolio as required

Hope this clarifies where I want to be and how I want to operate
[/quote]

Hi GCR. I really think we can assist you. I sent you a personal message.
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