Non US, non Europe based broker with access to Irish ETFs ?

For residents of the United Arab Emirates.
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Topic Author
DubaiEntrepreneur
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Joined: Sun Nov 24, 2019 10:06 am

Non US, non Europe based broker with access to Irish ETFs ?

Post by DubaiEntrepreneur »

Hello,

I am a non US citizen Dubai resident, and already have an account with an European broker.

To diversify, I'm looking to open an account with another broker that :
- is not US based (So Interactive Brokers doesn't work) or in Europe (since I already have an account there)
- has access to Irish ETFs, or ETFs based in a country that has the 15% withholding rate tax rates with the US, and not the 30%
- Can be opened by a Dubai resident

Do you know a broker like that ? I did a lot of research on the Internet but couldn't find any, so I figured out that I could ask this amazing community :)
Topic Author
DubaiEntrepreneur
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Joined: Sun Nov 24, 2019 10:06 am

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by DubaiEntrepreneur »

Well it seems it is not so easy to find :)

I'm wondering : how do Asian investors, based in Singapore for example, do to invest in ETFs and keep the withholding rate of dividends at 15% instead of 30% ? Not all of them use Interactive Brokers right ?
glorat
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Joined: Thu Apr 18, 2019 2:17 am

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by glorat »

If you really were in Singapore, then Standard Chartered bank is a clear obvious choice.
AlohaJoe
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Location: Saigon, Vietnam

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by AlohaJoe »

I assume virtually every country has brokers that will let you trade on the LSE. Shouldn't be hard to find.

CMC in Australia. Questrade in Canada. Etc.
Topic Author
DubaiEntrepreneur
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Joined: Sun Nov 24, 2019 10:06 am

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by DubaiEntrepreneur »

Thanks, it was not clear to me that I could buy Irish ETFs through the London Stock Exchange.

I see that the iShares Core MSCI World UCITS ETF is listed on LSE https://www.ishares.com/ch/individual/e ... f-acc-fund so it is perfect.

DBS Vickers has access to the LSE so I will try to open an account with them.

Do you know a local (UAE) broker that give access to the LSE ?
AlohaJoe
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Location: Saigon, Vietnam

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by AlohaJoe »

DubaiEntrepreneur wrote: Thu Dec 05, 2019 3:34 am Do you know a local (UAE) broker that give access to the LSE ?
Sorry, I don't know any about the UAE except where it is on a map :D Given the wealth there, I'd be shocked if there aren't local brokers giving access to the London Stock Exchange, though.
Topic Author
DubaiEntrepreneur
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Joined: Sun Nov 24, 2019 10:06 am

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by DubaiEntrepreneur »

That's fine thanks ;)

It seems Citibank UAE offers the possibility to invest in London listed ETFs : https://www.citibank.ae/uae/consumer/in ... kerage.htm

It is not easy to know what are their fees though. I'm going to contact them to know.
Topic Author
DubaiEntrepreneur
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Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by DubaiEntrepreneur »

Bummer, it seems Citibank Dubai charges 1% of traded amount per transaction and 0.2% custody fees per year, which is way too high https://en.wikipedia.org/wiki/Citibank_ ... _brokerage

I will keep looking for Asian based online brokers.
ICH
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Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by ICH »

AlohaJoe wrote: Thu Dec 05, 2019 5:01 am
DubaiEntrepreneur wrote: Thu Dec 05, 2019 3:34 am Do you know a local (UAE) broker that give access to the LSE ?
Sorry, I don't know any about the UAE except where it is on a map :D Given the wealth there, I'd be shocked if there aren't local brokers giving access to the London Stock Exchange, though.
There are. But cost an arm and a leg. Plus they're dangerous (they will promote active funds).

Generally recommended brokers:
Interactive brokers
Internaxx
Saxo
Swissquote
Degiro (you need bank account in Europe and from what I heard lately they may not accept UAE residents)
HSBC Invest Direct (the brokerage based in the UK, not the one that sells HSBC mutual funds)

There's a pretty active UAE Bogleheads chapter:
https://www.simplyfi.org/
Topic Author
DubaiEntrepreneur
Posts: 7
Joined: Sun Nov 24, 2019 10:06 am

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by DubaiEntrepreneur »

ICH wrote: Thu Dec 05, 2019 9:59 am Generally recommended brokers:
Interactive brokers
Internaxx
Saxo
Swissquote
Degiro (you need bank account in Europe and from what I heard lately they may not accept UAE residents)
HSBC Invest Direct (the brokerage based in the UK, not the one that sells HSBC mutual funds)
Yes, but all of these are in Europe or in the US, and it is not what I'm looking for :)
There's a pretty active UAE Bogleheads chapter:
https://www.simplyfi.org/
Thanks I'm gonna check that ;)
michoco911
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Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by michoco911 »

Yes, but all of these are in Europe or in the US, and it is not what I'm looking for :)
What is the issue with Saxo Bank or IB UK?
They are available for you. Any reason why the broker should be exclusively outside europe?
60% VWRD 40% AGGG until further notice
Topic Author
DubaiEntrepreneur
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Joined: Sun Nov 24, 2019 10:06 am

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by DubaiEntrepreneur »

michoco911 wrote: Sat Jan 04, 2020 10:19 pm What is the issue with Saxo Bank or IB UK?
They are available for you. Any reason why the broker should be exclusively outside europe?
Since I already have a broker in Europe, it is just to diversify also geographically from an economic and law standpoint.

It may be a bit over the top, but since it doesn't take more time to invest through a broker in Asia when everything is setup, why not do it ?

I finally found a solution : OCBC Securities https://portal.iocbc.com/

They are based in Singapore and give access to the London Stock Exchange, so it is perfect to invest in Irish based ETFs.

Their fees are 0.7% when you buy through the LSE, so not cheap, but it is a one time fee (you don't have to pay when you sell).

There is no inactivity fee, but there is a custody fee of $2 per counter chargeable every quarter (waived if you do 2 trades a month or 6 a quarter).
ChocolateFactory
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Joined: Sun Apr 26, 2020 7:57 am

Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by ChocolateFactory »

I have heard (not sure if it's true) that when you open a Interactive Brokers account outside the US, you are usually assigned their UK branch.
But if you explicitly apply for an account with their Hong Kong branch, you can get an account there instead.
Not sure if that makes any difference in practice though...
DXBinvest
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Re: Non US, non Europe based broker with access to Irish ETFs ?

Post by DXBinvest »

DubaiEntrepreneur wrote: Thu Dec 05, 2019 8:28 am Bummer, it seems Citibank Dubai charges 1% of traded amount per transaction and 0.2% custody fees per year, which is way too high https://en.wikipedia.org/wiki/Citibank_ ... _brokerage

I will keep looking for Asian based online brokers.
Did you really take it from Wikipedia, instead of checking with Citibank AE?
According to their schedule of fees "For equities, upfront charge of 0.3% in the gross value of the transaction, and any applicable broker fees, exchange fees and stamp duty/ taxes, depending on the market." The question is what are the broker fees but they shouldn't be high. Securities are held with UBS. For the reference if you wanted to have your investments held directly by UBS Swiss by opening account with them, they would slap you 0.7% annual custody. Citibank IPB London has much higher trading fees and custody fee of 0.5%, so Citibank AE seems to be super cheap for what it offers. The question is what is the legal status of this investment account with Citibank AE and whether it falls within shariah law if the assets are not physically kept in the UAE.

0.2% custody is acceptable, especially when it comes to banks. There is rarely a bank that will keep your portfolio below 0.2% custody unless you have e.g. $5M invested. The notable exception would be Standard Chartered Singapore. Their trading platform is not as great as SwissQuote for instance but no custody fees make it up.
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