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1st Step to trade @SET

 

 

 

Currently, trading access to SET and its other entities can be divided into three main channels:

 

  1. Investors can place their trades through SET member brokers.

  2. Direct Market Access (DMA) enables institutional investors and foreign trading companies to directly connect their trading applications via an SET member broker’s front-end system, thus enabling trading orders to be routed automatically to the exchange resulting in greater trading efficiency, faster and more accurate executions, higher security, and lower operating costs.

  3. Finally, SET provides securities companies with Internet trading services to facilitate trading by retail investors.  Not only has this online platform become popular with retail investors, it also leads to lower trading costs. Investors who are interested in trading online can directly open an account with an online broker.

SET offers different types of shares for both local and foreign investors which are summarized as following:

 

  1. Local Shares:  Both local and foreign investors can trade local shares, but foreign investors are not entitled to dividends and voting rights.

  2. Foreign shares (stock symbols with suffix “–F”):  SET has established a foreign trading board where foreign investors can register their investment holdings and be eligible for the same benefits as local investors.  Most SET-listed Thai companies have foreign ownership restrictions.  The information on the foreign ownership restrictions in respect to each individual stock is available on SET’s website:  https://www.set.or.th/set/companysummary.do?language=en&country=US

  3. Non-Voting Depository Receipt (NVDR) (stock symbols with suffix “–R”):  SET created Non-Voting Depository Receipts (NVDRs) to stimulate trading activity and to help eliminate barriers of foreign holding limits. NVDRs automatically carry the same prices and financial benefits as their underlying securities; the only difference is that NVDR holders do not have voting rights.  Information on NVDRs is available at:  http://www.set.or.th/nvdr/en/faqs/faqs.html

 

The summaries of rights are shown below for foreign investors:

 

Types of Shares

Capital-gain rights

Dividend rights

Voting rights

Local Shares

Yes

No

No

Foreign Shares

Yes

Yes

Yes

NVDR

Yes

Yes

No

 

 

 

 

 

  1. Select a brokerage firm in Thailand to open a trading account from this List of brokers

  2. Choose an account type.

    • Cash Account
      A cash account is an account where the investor must pay in full by the settlement date (T+3) the amount due on any transaction.  Cash accounts require 20% collateral in the account before the first trading.

    • Cash Balance (Pre-paid/ Cash Deposit)
      With a cash balance account, the investor is required to have the full amount for a trade on deposit prior to trading. The investor receives interest on the deposits in the account.

    • Credit Balance (Margin Account)
      For a credit balance account, the broker lends the investor cash to purchase securities. The brokerage firm charges interest on the borrowed cash for as long as the loan is outstanding. The investor has to deposit collateral (cash or securities) as per the minimum amount required.


  3. Fill out the application form and provide the required documents:

    Required documents for Thai Citizens

    • Certified copy of identification card
    • Certified copy of house registration
    • Certified copy of bank passbook showing account number and name for Automated Transfer System (ATS)
    • Certified copy of a 6 month bank account statement
    • THB 30 for stamp duty

    Required documents for Foreigners

    • Certified copy of passport
    • Certified copy of work permit, if working in Thailand
    • Certified copy of bank passbook showing account number and name for Automated Transfer System (ATS)
    • Certified copy of a 6 month bank account statement
    • THB 30 for stamp duty


  4. Send all documents to the brokerage firm for approval.


Note: The account holder must be at least 20 years old. The applicable banks for Automated Transfer System (ATS) are BBL, KTB, BAY, KBANK, TMB, CIMB Thai, SCB, TBANK, UOB Thailand, and LH Bank. 

 

 

 

 

 

  1. Funding the trading account

    • Fund the trading account via bank transfer or hand carry money to the broker.
    • Minimum fund requirements depend on the terms and conditions as negotiated with the broker.


  2. Placing the order (trading hours are based on the Thai time zone GMT+7)

    There are two ways to place an order:

    • Online trading system through an SET member broker
    • With the assistance of an investment consultants via email or telephone


  3. Clearing and Settlement

    Clearing and settlement will be T+3, where T is the day the order was made.


Note:  Contact your broker for more information on:

  1. Trading process and system
  2. Commission rate
  3. Minimum balance and minimum order
  4. Clearing and settlement process

 

 

 

 

 

For individual investors, capital gains are tax exempt, and any profits will be transferred to the investor’s broker account directly.  Dividends are subject to 10% withholding tax, which can be submitted via bank account transfer or check.

 

For more information about taxation on equity investments, please see: https://www.set.or.th/en/regulations/tax/tax_p1.html

 

 

 

 

 

 

SET Group Websites
For more information

SET Contact Center

+(66) 2009-9999 Fax +(66) 2009-9991

SETContactCenter@set.or.th