Things the foreigner need to know before opening a stock account for in Vietnam

Things the foreigner needs to know before opening a stock account in Vietnam

The procedure for opening a stock account is like opening a bank account, the procedure is quite easy.

The instruction of opening a stock market for foreign investors (opening indirect investment account)

But if you do not know the Vietnamese language, you can’t understand the content of the brokerage contracts. You also might not be able to ask office staffs (who give you prepared contracts) to explain terms cause their limitation of English skill and working time.

Thing you need to know for investing in Vietnam's stock market

The language barrier is one of the biggest issues to the foreign investors.

We advise you should completely understand all of the contract content you sign, especially margin contract. In general, when opening a stock account in Vietnam you should sign 3 contracts: you might sign 3 contracts with the brokerage securities company: Contract of opening a stock account, Margin contract and Internet banking transfer. Contact us we will help you understand fully every the contract’s content.

Here below we recommend some detail you must know before signing the contract:

1. Contract of opening stock account:

Trading fee: the Trading fee is the most expensive fee. In the case you trade frequently, it’s worth the most. You should care about the trading fee.

Click here to find out some companies’ fees.

2. Margin lending contract

There are some terms of the contract you need to make clear such as margin call rate, margin loan rate and lending rate of tickers before opening a stock account.

Call margin rate: A margin call is a broker’s demand on an investor using margin to deposit additional money or securities so that the margin account is brought up to the minimum maintenance account. Margin calls occur when the account value depresses to a value calculated by the broker’s particular formula. The margin interest rate around 13-14%/year is acceptable in Vietnam’s market.
Comparing to other southeast Asian markets, such as Indonesia’s and Thailand’s. Vietnam’s market has a margin interest is much more attractive,

3. Internet banking transfer  

Internal transfer rate fee for transferring your money from a stock account to a bank account. You should notice which bank is associated with the securities company where you open the stock account to avoid the payment of transferring money, although it’s quite small.

 

 

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