The Stock Exchange of Thailand, known as the SET, is the country's main stock market and one of the biggest in Southeast Asia. It lists banks, energy and petrochemical groups, retailers, hospitals, airports and property developers. The Securities and Exchange Commission of Thailand supervises the market. Shares are priced in Thai baht (THB), and the main index is the SET Index.
This guide explains how a person buys Thai shares, how foreigners are treated differently from Thai investors, and what to check before investing. It is general information and not advice on any share. Rules, fees and taxes change, so confirm the current position with a licensed securities company.
How the market is organised
Thailand has two boards. The SET holds the larger and more established companies, and the Market for Alternative Investment, known as the mai, lists smaller and younger companies with lighter requirements and usually thinner trading. Check which one a share belongs to before you buy. The SET50 and SET100 indices follow the largest companies.
Ownership is recorded electronically at the Thailand Securities Depository, so you do not receive paper certificates.
Step 1: choose a securities company
Individuals buy through a securities company that is licensed by the regulator and is a member of the exchange. Thai firms include the brokerage arms of banks and independent companies, many with mobile apps. Compare:
- Licence. Check the firm on the regulator's public list.
- Costs. Commission is a percentage of the order with a minimum. Online accounts often have lower rates than full-service accounts.
- Platform and language. Apps and contracts may be mainly in Thai. If you do not read Thai, ask for English documents before you open an account.
- Foreign markets. Some firms also give access to overseas shares and funds, which carry different risks.
- Client protection. Ask how client assets are kept separate from the company's own.
Step 2: open and fund the account
Thai residents need a national identity card and bank details. Foreign investors are usually asked for a passport, proof of address and, for some accounts, additional documents. Some companies serve non-residents and others do not, so ask first. Check how money enters and leaves the account, and what conversion costs apply. See foreign investor rules for the questions to ask.
Foreign ownership limits and NVDRs
Thai law limits how much of certain companies foreigners can own, for example in banks and some other regulated sectors. When the foreign limit is full, foreigners may not be able to buy the ordinary shares, and the shares can trade at a premium to the price of the foreign-board line.
Thailand has a workaround called the Non-Voting Depository Receipt, or NVDR. An NVDR gives the holder the economic benefits of a share, such as dividends and price changes, but not voting rights, and it is not subject to the same foreign ownership limit. Many foreign investors buy NVDRs instead of the ordinary shares. The price can differ from the ordinary share, and the tax treatment of dividends can differ, so ask what applies to you.
Step 3: place an order
Use a limit order for shares that do not trade much. The exchange applies a daily price band, so a share cannot move without limit in one session. Check the volume before you buy.
Follow live and end-of-day prices, gainers and losers on Thai stocks.
The baht and your return
The baht floats against the dollar and other currencies. If you invest from outside Thailand, the return in your home currency combines the share's price change and the baht's move. Thailand's economy depends on exports and tourism, so the currency can react to global trade and travel trends. See currency risk for foreign stocks.
What is distinctive about the market
- Large, state-linked and family-controlled groups. A few energy companies and big conglomerates account for much of the main index.
- Dividend focus. Many Thai companies pay regular dividends, and investors often compare yields.
- Retail participation. Individual investors do a large share of trading, which can magnify price moves on news.
- Property and tourism exposure. Several large companies depend on hotels, airports and real estate.
- Classification. Thailand is treated as an emerging market by most index providers. See emerging vs developed markets.
Costs and tax
Expect brokerage commission, exchange and clearing fees and value-added tax on the commission. Thailand taxes dividends, usually through withholding, and the treatment of capital gains differs for residents and foreigners and has changed in the past. Ask a qualified adviser about your own position. See tax on foreign stock gains.
A worked example
You buy 2,000 shares at 20 baht, an order of 40,000 baht. With costs of 0.2 percent, about 80, you pay 40,080. If the price rises to 22.5 baht, your shares are worth 45,000, a gain of 4,920 before selling costs and tax. If it falls to 18, they are worth 36,000, a loss of 4,080 including the purchase cost. A foreign holder's result would also move with the baht. The numbers are an illustration, not a forecast.
Checklist before you invest
- Confirm the securities company is licensed.
- Ask whether it accepts non-resident clients and in which language.
- Find out if the share has a foreign limit and whether an NVDR exists.
- Check which board the share trades on and its volume.
- Read the latest report and the dividend history.
- Ask an adviser how dividends and gains are taxed for you.
This guide is for general information, not financial advice. See the disclaimer.