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Jon Springer
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I write about emerging and frontier markets in Asia. I now primarily contribute work to Forbes Asia. My most recent work and my complete bio can be found on Forbes Asia's site: http://www.forbes.com/sites/jonspringer/ If it is easier, you can find my recent work sorted by country on this... More
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  • acehart
    , contributor
    Comments (1813) | Send Message
     
    Jon

     

    What lead you onto this terrific piece of work??

     

    acehart
    3 Jul 2011, 09:43 AM Reply Like
  • H. T. Love
    , contributor
    Comments (17876) | Send Message
     
    Such good stuff just keeps rolling in from you Jon.

     

    We are truly fortunate that you chose to participate here.

     

    Many thanks to you!

     

    HardToLove
    3 Jul 2011, 01:04 PM Reply Like
  • Suzhou Blue Tiger
    , contributor
    Comments (84) | Send Message
     
    Excellent real world information. I have been following Mongolia for awhile as well. I plan to travel there this summer and open a brokerage account. Will see how it goes, start small and build up from there. Another thing I like about Mongolia, is that they have no incentive to keep the currency low as in other Asian economies who are exporting. We could really see that currency get much much stronger in the future.
    4 Jul 2011, 03:39 AM Reply Like
  • Jon Springer
    , contributor
    Comments (4160) | Send Message
     
    Author’s reply » It has been pointed out to me that you can download the account opening guide from Eurasia's website after registering with their website (free). This provides some good information regardless of what company you open up a brokerage account with, or if you just want some more information on the country. Once registering, the link where you can download the information is:
    www.eurasiac.com/broke...
    9 Jul 2011, 07:58 AM Reply Like
  • Kshanti
    , contributor
    Comments (9) | Send Message
     
    I opened an account at BDSec half a year ago. I have made trades but I have certain concerns about the reliability of the service since the orders and information flow is manual in many places. They haven't answered my question about order form details, type of orders, validity of real time quotes or how can I cancel or modify my order.

     

    For example, I am fishing from the bottom and have made an order with too low price and would like to increase it. How do I change it? No answer yet. No mention in the FAQ. And why there is no bid/ask levels in the real time chart for the stock I am currently trying to buy. Even if I were the only one bidding and none asking, shouldn't there still be the bid level? No answer yet to that either.
    30 Aug 2011, 09:15 AM Reply Like
  • Jon Springer
    , contributor
    Comments (4160) | Send Message
     
    Author’s reply » Greetings Kshanti,

     

    Thank you for the comment.

     

    In general, I have heard that BDSec's service is very good, so this is surprising. I do wonder if some of it can be explained by the limits of the hours and limits of the liquidity of the Mongolian Stock Exchange.

     

    Please feel free to elaborate by sending a message to my Seeking Alpha e-mail box.
    30 Aug 2011, 01:47 PM Reply Like
  • Kshanti
    , contributor
    Comments (9) | Send Message
     
    There are two charts at the BDSec home page: "Real time Stock Market
    Quotes" and "Stock Market Information" & "See More".

     

    The first one seems to have only the stocks with trades for that
    day. Typically some 20 stocks are listed. The other chart seems to
    contain also stock with no trades for that day.

     

    They have usually answered politely something to my questions but many
    of the (sub)questions have not been answered. I blame email as a
    communication media: It is error prone and involves humans. I've also
    missed some their emails and one statement was caught by spam filter.

     

    They have also suggested using an Internet service provided by
    schcd.mn which costs USD7/MNT8000 a year. It is only for providing
    information about stock prices, account and order status but worth a
    try and a step closer to what I am used with internet brokers.
    1 Sep 2011, 09:39 AM Reply Like
  • Jon Springer
    , contributor
    Comments (4160) | Send Message
     
    Author’s reply » Thanks again for posting your experiences Kshanti. Much obliged.

     

    For other, the schcd.mn website would be the website of the Securities Clearinghouse & Central Depository (SCHCD) of Mongolia.
    1 Sep 2011, 12:00 PM Reply Like
  • Suzhou Blue Tiger
    , contributor
    Comments (84) | Send Message
     
    I recently met one of the major owners of BDsec, American guy. This is the best option for brokerage. Banking options are Khan Bank, Xac Bank, Trade and dev. bank.

     

    The MSE is still in its infancy but London Stock exchange is now supporting them.

     

    Personally, I am going with BDsec for brokerage services and Khan Bank on cash deposits. FYI-Mongolian banks are pay up to 13% now on cash...2010 returns were 29% on cash including fx gains against the USD.
    1 Nov 2011, 06:39 PM Reply Like
  • Jon Springer
    , contributor
    Comments (4160) | Send Message
     
    Author’s reply » Thank you for your contribution Mr. Collins. I look forward to your future participation.

     

    While I do like BDSec, I do not think every investor has the ability to meet with Mr. James Passin (an American whose hedge fund owns a significant portion of BDSec). I think there are a large number of considerations when opening a brokerage account in Mongolia for individual investors. BDSec is one of many quality brokerages in Mongolia. Each brokerage house has positives that will vary depending in part on the needs and attributes of the individual investor.

     

    Brokerage accounts can be opened from abroad. Banking accounts require being in Mongolia in person which is not an easy option for all investors.

     

    For certificates of deposits at banks in Mongolia, I was quoted between 10% and 18% depending on the amount of money you invest with the bank and other terms of the CD agreement. This is generally for a 1 year CD. Keep in mind, the Bank of Mongolia just set interest rates at 12.25%. Additionally, investors will be subject to local taxes (even if they are minimal) as well as a tax on gains on funds when investments funds are repatriated out of the country. Also, currency gains, while prohibitively likely under the circumstances, are not locked in as the central bank has tried in the past to maintain a trading band on the currency exchange rate.

     

    Through a brokerage you can also invest in 5-year Mongolian sovereign debt notes. Also, last I checked there is a 1-year corporate note from Just Agro which yields 16.2% still open to investors for brokerage account holders.

     

    The London Stock Exchange is developing the Mongolian Stock Exchange (MSE). There should be a lot of improvements going forward. However, the Mongolian Stock Exchange is currently open 2 hours per day and is not particularly liquid. It can take weeks or longer to purchase a full position in a single stock as finding sellers can be challenging.

     

    I would go into more detail, but I am still pending publication of a few articles that do have greater detail.
    1 Nov 2011, 07:09 PM Reply Like
  • Jon Springer
    , contributor
    Comments (4160) | Send Message
     
    Author’s reply » P.S. For those not aware, my weekly blog on Mongolian news is here: http://seekingalpha.co...
    1 Nov 2011, 07:13 PM Reply Like
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