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Bond Trading

Fixed Income investment instruments, such as bonds, provide you with an efficient way to diversify your investments with different level of risks and return, while providing regular interest income and potential capital gain.

DBS Vickers securities (Thailand) is a member of fixed income trading brokerage through Bond Electronic Exchange (BEX). We have provided services to both individual and corporate investors to enhance an alternative of investment to investor who wishes fixed return with reasonable yield. The minimum trading limit is Baht 100,000. To find out more about investment, please contact your designated Marketing Officer or our friendly Client Services representatives at (66) 2657-7171.

Open Bond Trading Account
 

To open account with us, you will need to complete an account opening form, which is available at DBSV upon request. You will need to provide us the following documents:

Individual
1) A certified true copy of valid ID Card.
2) A certified true copy of House Registration Certificte.
3) A certified true copy of your recent bank statement showing transaction over the last 6 months.

Juristic
1) A certified true copy of Affidavit not late than 3 months.
2) A certified true copy of valid ID Card and House Registration Certificate of authorized persons.
3) A certified true copy of Board Resolution approving to open bond trading account.
4) List of Authorized person and/or Power of Attorney to appoint an authorized person to operate your account .
5) A copy of Audited Financial Statement over the last 1 year.

Request the Account Opening Form or should you have any inquiries, please contact your designated Marketing Officer or our friendly Client Services representatives at (66) 2657-7171.

Trading Method
 

After the completion of opening account process, you will be informed of your account number and your designated Marketing Officer. You can place order with your designated Marketing Officer by phone. When placing the order, we recommend you to inform your account number, name, bond name, price and amount (minimum amount is 100 units.).

Bond Trading Time of business day;
   Morning session    10.00-12.30 and
   Afternoon session  14.30-16.30


Settlement Method
 
It settlement for bond trading is under T+2 basis (two working days offer trade day).
Buy Client shall settle by either one of the followings payment method;

1) By cheque pays to “DBS Vickers Securities (Thailand) Co., Ltd.” or;

2) By pay-in to DBS Vickers Securities (Thailand) Co., Ltd.’s bank account. or;

3) By ATS (automatically transfer from an investor’s bank account to DBSV’s bank account).

Sell An investor shall deposit/transfer bonds to his trading account before placing order. After the order’s execution is completed, DBSV will credit fund to the investor on T+2 by either one of the followings;

1) By cheque or;

2) By pay-in or;

3) By ATS (automatically transfer from DBSVT’s bank account to an investor’s bank account).

Note: ATS method is valid after the requesting process was approved by Bank.

Commission
 

The commission rate for bond trading through Bond Electronic Exchange (BEX) will be as follows:

Volume Daily Trading per Client (Dirty Price) Bond Trading Commission
Volume <=10 Million 0.05%
10 Million < Volume <= 50 Million 0.04%
Volume > 50 Million 0.03%

The minimum commission per day charged to investors will be as follows:

Details Minimum Commission Per Day
Receive/Pay by ATS 50 Baht
Receive/Pay at the counter and/or pay-in 100 Baht
Receive/Pay by cheque and using the messenger services 200 Baht


Type of Bond Trading
 
  1. Government Debt Securities
    1.1 Government Bond
    1.2 State Owned Enterprise Bond
    1.3 State Agency Bond
    1.4 Municipal Bond

  2. Corporate Bonds

An investor is able to access bond trading information by click here.

Taxation on Investment
 

An investor is responsible for pay tax on investment income from interest income, discount and capital gain.

Individual investor

Types of income Domestic investor Foreign investor
Interest income 15% withholding with option for year-end calculation. 15% withholding
Discount 15% withholding upfront only first hand with option for year-end calculation. 15% withholding upfront only first hand
Capital Gain 15% withholding with option for year-end calculation except zero-coupon which is taxed at first hand. 15% withholding except zero-coupon which is taxed at first hand


Corporate investor

Types of income Domestic investor Foreign investor
Interest income 1% withholding and realize as the income to be taxable at the end of the year (financial institution subject to 3.3% specific business tax on the interest earned). 15% withholding Double Taxation Agreement must also be taken into consideration.
Discount 1% withholding and realize as the income to be taxable at the end of the year 15% withholding Double Taxation Agreement must also be taken into consideration.
Capital Gain No withholding but the gain is realized as the income to be taxable at the end of the year 15% withholding Double Taxation Agreement must also be taken into consideration.


Return on Investment
 

An investor will obtain the return on investment in forms of interest income, discount, capital gain and the principal when reaches to maturity.

You should consider the ability to pay of the principal and interest income of bond issuer compare to return on investment carefully before investing in fixed income.

Information for Investment

Glossary Description
Bond A contractual agreement between lender and borrower is obligated to pay the lenders periodic coupon payments maturity.
Coupon The periodic interest payment payable to bondholders during the life of the bond.
Discount Debt security sold for less than its face value.
Capital Gain When a security is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost.
Price Price is quoted in term of per unit with 2 decimal points. This quoted price is required to be the gross price.
Dirty Price The price paid by the bond buyer, which generally includes the accrued interest. It’s also known as “Gross Price”.
Clean Price Bond price excluding the accrued interest to sellers.
Yield to Maturity The percentage rate of return paid on a fixed income security if the investor buys and holds it until its maturity. The calculation for YTM is based on the coupon rate, time to maturity, and market price. It assumes that coupon interest paid over the life of the bond will be reinvested at the YTM.
Maturity The date that a bond comes due. Principal and any accrued interest must be all paid off.
Credit Rating The company’s and individual issue’s rating based on computed financial ratios of the firm that is committed to provide by Credit Rating Agencies. The ratings range from AAA (highest rating) to C (junk bonds) to D (currently default).
Bid The price at which a buyer is willing to buy.
Offer A price in which sellers are willing to sell.
Call Option An option contract that gives the issuer the right (but not an obligation) to redeem the security at a pre-specified price, on or prior to maturity.
Put Option A bond with a put option. Bondholder of this security has the right, but not an obligation, to sell the bond back to issuer at a predetermined price prior to its maturity.

Find out details and information either features or bond calculation, you can link to the following website;
www.thaibond.com
www.bex.or.th