BAHRAN | What brokerage platform do you use? [Bahrain]

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Topic Author
boglehooligan
Posts: 96
Joined: Mon Mar 23, 2020 11:38 am

BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Hello Bahrain Bogleheads,

Thought to create this thread to discuss anything about brokers and fund transfer options for Bahrain based investors.

Do you use a local based platform such as SICO or do you use an international trading platform such as Interactive Broker?

What is the service like? Are the trading fees high?

Share your experience here :happy
desertdirt
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Joined: Thu Apr 29, 2021 5:11 am

Re: BAHRAN | What brokerage platform do you use?

Post by desertdirt »

I use IB, have a Citi bank gold account and transfer is seamless (I transfer in USD)
mohd
Posts: 95
Joined: Wed Jul 22, 2020 2:10 am
Location: Bahrain

Re: BAHRAN | What brokerage platform do you use?

Post by mohd »

I use Interactive Brokers. Fees are $10 monthly for accounts that are under $100k. I think they are reasonable.

I am wondering if IB is licensed by CBB?
desertdirt wrote: Thu Apr 29, 2021 5:12 am I use IB, have a Citi bank gold account and transfer is seamless (I transfer in USD)
How much is the transfer fee and exchange rates? I am looking for a cheaper option than ila bank. I pay almost 13 BD per transfer with ila bank.
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Are there any cheaper options to transfer funds from Bahrain?

I agree with Mohd that BD13 is quite expensive to transfer funds
mohd
Posts: 95
Joined: Wed Jul 22, 2020 2:10 am
Location: Bahrain

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by mohd »

boglehooligan wrote: Fri Apr 30, 2021 6:40 am Are there any cheaper options to transfer funds from Bahrain?

I agree with Mohd that BD13 is quite expensive to transfer funds
Meem Bank costs BD 10.5, a bit cheaper than ila bank
https://bh.meem.com/wp-content/uploads/ ... h-En-2.pdf

There is also a service by ithmaar bank called IthmaarSEND
https://www.ithmaarbank.com/ithmaarsend

I once asked them if it's possible to send money to US and how much does it cost. They told me it costs BD 3
However, I don't have an account with them to verify that. But it would be wonderful if it only costs 3 BD
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

3 BD for international transfers sounds like a great deal!

It would be worthwhile to open an account with them just for the transfer.

I have also sent an email to BFC https://www.bfc.com.bh/corporate/intern ... -payments/ to check their rates and will post here once they respond.
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

boglehooligan wrote: Fri Apr 30, 2021 1:26 pm
I have also sent an email to BFC https://www.bfc.com.bh/corporate/intern ... -payments/ to check their rates and will post here once they respond.
Just keeping you updated that they responded and confirmed it costs BD17 to transfer
mohd
Posts: 95
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Location: Bahrain

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by mohd »

boglehooligan wrote: Sun May 02, 2021 11:26 am
boglehooligan wrote: Fri Apr 30, 2021 1:26 pm
I have also sent an email to BFC https://www.bfc.com.bh/corporate/intern ... -payments/ to check their rates and will post here once they respond.
Just keeping you updated that they responded and confirmed it costs BD17 to transfer
Oh that's really too much.

Standard Chartered costs BD7.5 according to this link. They did not mention any correspondence banking fees

https://www.google.com/url?sa=t&source= ... 9973742292


I might open an account with ithmaar to see if it really costs 3 BD
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Yes I agree - BD17 is too high

I have been going through the ithmaar website but can’t seem to find anything about transfer fees
mohd
Posts: 95
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Location: Bahrain

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by mohd »

boglehooligan wrote: Sun May 02, 2021 11:59 am Yes I agree - BD17 is too high

I have been going through the ithmaar website but can’t seem to find anything about transfer fees
Check FAQ section.
https://www.ithmaarbank.com/ithmaarsend
dylandog
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by dylandog »

I still have an Italian account thus I send money to IBKR from there thus the fee are lower.
I believe IBKR is a good platform to use worldwide including middle east
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Ciao dylandog 😊

I’m curious to know how that impacts your taxes?

In your account do you mention that you are resident in Bahrain or Italy?

If you mention that you are resident in Italy do you benefit from a special tax treaty?
dylandog
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by dylandog »

Hi boglehooligan :sharebeer
in the moment you live more than 183 days outside the country ( Italy ) and you are able to show it to the Italian tax organization designed , you are tax free from Italian income and capital gain , thus in IBKR i signed on with my Bahrain residence and follow Bahrain rule .
and you where are you from ?
mohd
Posts: 95
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Location: Bahrain

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by mohd »

boglehooligan wrote: Sun May 02, 2021 11:59 am Yes I agree - BD17 is too high

I have been going through the ithmaar website but can’t seem to find anything about transfer fees
I opened a new bank account today with Ithmaar Bank

Unfortunately, IthmaarSEND service does not have "United States" as an option.
And when trying to send via the regular wire transfer service, it costs 13 BD
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Thanks for the update Mohd!

It would probably make sense to send funds to your broker Quarterly in chunks so that you save on transfer fees
mohd
Posts: 95
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Location: Bahrain

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by mohd »

boglehooligan wrote: Wed May 19, 2021 1:41 am Thanks for the update Mohd!

It would probably make sense to send funds to your broker Quarterly in chunks so that you save on transfer fees
Yes, I decided to send them every 6 months
Krombopulos
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Joined: Tue May 18, 2021 6:34 pm

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by Krombopulos »

Ila Bank Charges - BD. 5.25 + Correspondence Charges - International Payments - SWIFT

BISB Charges - BD. 5.25 + Correspondence Charges - Swift Transfer outside Bahrain
Abdulla9104
Posts: 5
Joined: Tue May 24, 2022 4:56 pm

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by Abdulla9104 »

Hey guys.

I'm Abdulla and I'm from Bahrain. I'm a forex/CFD trader with 5 years of experience. I have decided in 2021 to build a portfolio which is addition to what I'm doing now. I have bike account for long term investment and dividend collection. Unfortunately guys, I'm also having same issue with High exchange fees using wire transfer through the banks you mentioned above.

In the meantime, I have sent an email to Western Union to ask whether they transfer money to bike, and their rate.
I'm waiting for their reply...
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Welcome Abdulla to the group

You are in the right place to discuss long term investing.

Thanks in advance for keeping the group updated with your findings.
Abdulla9104
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by Abdulla9104 »

Thank you very much boglehooligan :happy

and sorry for late reply, I have contacted many banks and exchanges regarding the above matter. and to be honest, I'm not satisfied with the charges as they all charge almost the same amount.

I have found and I highly recommend this broker ( Mubasher https://regglobal.mubashertrade.com/EN/ ... rmId=09526) licensed by CBB. you will have Access to;

* USA stock Market
* All GCC Markets
* European stock Market
* Turkish stock Market
* and many more instruments

also the commission is very cheap and you which is 5 BD only :shock: 8-) ( better than 13.5 BD which the banks charge you on IBKR bank wire ). :annoyed

and about deposit / withdrawal > it can be through Iban. if you use Benefit Pay, it works. :D :D :D :D

and I'm happy with the customer support.

Regards,
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Hi Abdulla :happy

Just a reminder to avoid trading in all other markets....

The recommended ETFs to trade for Bahrainis and many Expats residing in Bahrain would require to be Ireland Domiciled. (i.e. VWRA, VWRD, IGLO etc...) If you trade directly in the US market, you will be debited 30% Withholding Tax on any dividends you earn and also there is a hefty Estate Tax.

Regarding commissions, Interactive Brokers is still far cheaper to trade than Mubasher. It costs less than $2 per trade on Interactive Brokers when investing in Ireland Domiciled ETFs.

Having said that, would it be possible to kindly check with Mubasher:
What their USD conversion rate is?
Custody fees?
Inactivity fees?
Withdrawal fees?
Any other fees?

I ask because maybe it just might make sense to use Mubasher if you are investing in a simple 2 fund portfolio (one Bond ETF and one Stock ETF) because while their trades are more expensive, you are not being charged for transfer fees and in this scenario net-net your fees will be the same when comparing Interactive Brokers fees to Mubasher fees.

On a last note, it could be possible that Mubasher is using a white label platform such as Saxo, Swissquote or Interactive Brokers to execute their trades - perhaps ask this question too? :happy
Last edited by boglehooligan on Sat Jul 02, 2022 10:29 pm, edited 2 times in total.
Topic Author
boglehooligan
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

one more point to add is that the cheapest method to wire transfer funds is using "Wise" (formerly Transfer Wise) and while this is available in UAE sadly it is still not available in Bahrain :( You get the best interchange rates and it's cheaper to wire funds... So let's keep our eyes open to when they finally do open their service in Bahrain
Abdulla9104
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Joined: Tue May 24, 2022 4:56 pm

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by Abdulla9104 »

Thanks for the reply and for the points you mentioned. I will definitely keep them in mind.

I will try my best to get the answers to you as soon as possible.

Best regards. :D
Abdulla9104
Posts: 5
Joined: Tue May 24, 2022 4:56 pm

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by Abdulla9104 »

Just a reminder to avoid trading in all other markets....

Thanks Dear for the advise, I’m very aware of it. But wouldn’t be a good idea to split buy orders if I’m willing to buy and hold for a long term. As nobody knows where would be the new bottom for the market.

The recommended ETFs to trade for Bahrainis and many Expats residing in Bahrain would require to be Ireland Domiciled. (i.e. VWRA, VWRD, IGLO etc...) If you trade directly in the US market, you will be debited 30% Withholding Tax on any dividends you earn and also there is a hefty Estate Tax.

Well said, and you are right about it.. I am currently investing in Bahrain Market as there is potential in the Telecom sector. And I hold a little of US stock. But mainly I’m focusing on the local market. and regarding the 30% tax, unfortunately we cannot do anything about it, whether we use IBKR or Mubasher or any broker that gives us access to the US market.
but what we can do, is it to find ETF/stock with less commission.


Regarding commissions, Interactive Brokers is still far cheaper to trade than Mubasher. It costs less than $2 per trade on Interactive Brokers when investing in Ireland Domiciled ETFs.

If you look at it as a day trader/swing trader, IBKR will be suitable for your. In My case as a long term investor ( buy and hold ), it will not make any difference, and Mubasher is suitable for me due to methods of payment, less deposit/withdrawal charges.
If im using IBKR,
I pay 13.5 BHD for deposit / 13.5 BHD for withdrawal >> 3 days to send/receive money.
And if I’m trading with Mubasher
I Pay 0 BHD for deposit / withdrawal, however, each trade execution will be charged by 5 BHD. It is high, but if you know which stock to trade, you just buy and hold it, and you don’t need to buy/sell every few days.
:wink:

Having said that, would it be possible to kindly check with Mubasher:
What their USD conversion rate is? From BHD to USD ( 2.64547 $ ) / USD to BHD ( 0.37600 BHD ), you can convert the currency using their platform.
Custody fees?
Inactivity fees?
Withdrawal fees?
Any other fees?

This link shows the fees ((https://global.mubashertrade.com/pricing/))

I ask because maybe it just might make sense to use Mubasher if you are investing in a simple 2 fund portfolio (one Bond ETF and one Stock ETF) because while their trades are more expensive, you are not being charged for transfer fees and in this scenario net-net your fees will be the same when comparing Interactive Brokers fees to Mubasher fees.

You are right, but as I mentioned above, for buy and hold for long term you will not be affected by the trade execution fees :) . If you are buying and selling in short term, it will affect you for sure. :shock:

On a last note, it could be possible that Mubasher is using a white label platform such as Saxo, Swissquote or Interactive Brokers to execute their trades - perhaps ask this question too?

Well, they have their own platform called Mubasher Pro / and Mubasher Plus

one more point to add is that the cheapest method to wire transfer funds is using "Wise" (formerly Transfer Wise) and while this is available in UAE sadly it is still not available in Bahrain You get the best interchange rates and it's cheaper to wire funds... So let's keep our eyes open to when they finally do open their service in Bahrain

that’s nice. And unfortunate for us as we have limited options. We hope they offer their service in Bahrain :D .
Topic Author
boglehooligan
Posts: 96
Joined: Mon Mar 23, 2020 11:38 am

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Thank you for your feedback and research Abdulla – much appreciated :happy

Answers to some of your points below that I hope will help you in your investment journey:


I am currently investing in Bahrain Market as there is potential in the Telecom sector.
And I hold a little of US stock. But mainly I’m focusing on the local market.

Bogleheads way of investing adhere to holding a broadly diversified portfolio consisting of bond funds/ETFs and equity fund/ETFs

Stock picking is considered speculative trading, carries a lot more unnecessary risk and almost always underperforms the overall market. In other words, as Jack Bogle would say, “Don't look for the needle in the haystack. Just buy the haystack.” :happy

90% of the so-called best investment firms can’t beat the overall market over the long term, so if they can’t manage to pick stocks using all their research and resources it is highly unlikely that individual stock pickers can too. https://www.spglobal.com/spdji/en/resea ... piva/#mena

That being said, if you still have a strong desire to pick stocks, limiting your exposure of stock picking to a small percentage of your portfolio (i.e. 5% of your overall portfolio) would be prudent.

Regarding the 30% tax, unfortunately we cannot do anything about it, whether we use IBKR or Mubasher or any broker that gives us access to the US market.
Just to reiterate, you can avoid these taxes by investing in the US stock market through the LSE
Abdulla9104
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Joined: Tue May 24, 2022 4:56 pm

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by Abdulla9104 »

Thank you Boglehooligan. :D

do you mind mentioning the broker you use for LSE ?

Regards
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

I will give you a clue :wink:
It has very low trading commissions, no custody fees and it's on page 18 of the "Simply Fi Getting Started Guide"
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Abdulla9104 wrote: Thu Jun 30, 2022 12:03 pm Thank you very much boglehooligan :happy

and sorry for late reply, I have contacted many banks and exchanges regarding the above matter. and to be honest, I'm not satisfied with the charges as they all charge almost the same amount.

I have found and I highly recommend this broker ( Mubasher https://regglobal.mubashertrade.com/EN/ ... rmId=09526) licensed by CBB. you will have Access to;

* USA stock Market
* All GCC Markets
* European stock Market
* Turkish stock Market
* and many more instruments

also the commission is very cheap and you which is 5 BD only :shock: 8-) ( better than 13.5 BD which the banks charge you on IBKR bank wire ). :annoyed

and about deposit / withdrawal > it can be through Iban. if you use Benefit Pay, it works. :D :D :D :D

and I'm happy with the customer support.

Regards,

I reached out to Mubasher to get clarity to trade ETFs that are Ireland Domiciled and it is quite expensive at minimum charge of 30 GBP. There are also other charges to include variable rates of 0.15% plus stamp duty! So far Interactive Brokers seem to be the most competitive option.

For Example you bought XYZ traded in LSE market ,

If it is a buy order ,
Stock : XYZ
Quantity : 1000
Price : 12 GBP

Value 1000 x 12 = 12,000
Commission 12000 x 0.15% variable = 18 GBP the commission will be minimum 30 GBP
Stamp duty(only on Buy orders) 12000 x 0.005= 60 GBP as stamp duty total commission paid will be
Commission = 60 Stamp duty + 30 GBP + 1 GBP value over 10,000 Gbp = 91 GBP

Lets say same example but you choose 2000 shares ,

Value 2000 x 12= 24,000
Commission 24,000 x 0.15%= 36
Stamp duty(only on Buy orders) 24000 x 0.005= 120 GBP as stamp duty total commission paid will be
Commission = 120 Stamp duty + 36 GBP + 1 GBP value over 10,000 Gbp = 157 GBP
TedSwippet
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Location: UK

Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by TedSwippet »

boglehooligan wrote: Thu Jul 21, 2022 7:12 pm There are also other charges to include variable rates of 0.15% plus stamp duty!
There is no stamp duty on ETF shares traded in London:

Exchange Traded Funds - LSE
No stamp duty
Trading is tax efficient as ETFs are free of UK stamp duty in the secondary market.
How to buy an ETF: Frequently asked questions | justETF
Do I pay a transaction tax when I buy an ETF?
No. On most UK share purchases, there is a transaction fee called Stamp Duty charged at 0.5%. However, stamp duty is not payable on overseas domiciled ETFs that trade in London. ETFs from the main providers are all domiciled in Ireland, Luxembourg and France. Stamp duty on UK-domiciled ETFs was abolished in April 2014.
Also no stamp duty or anything similar, as far as I know, on the same ETFs traded on other European exchanges.
Topic Author
boglehooligan
Posts: 96
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Re: BAHRAN | What brokerage platform do you use? [Bahrain]

Post by boglehooligan »

Thanks TedSwipet for clarification. I was advised by the brokerage that i would be charged stamp duty :confused and i gave them a specific ETF (VWRD) as an example to understand their fees. Having said that, this broker still seems to be on the expensive side
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