How to Invest in Index Funds & ETFs (Middle East & Global Expats)

In this video, we explore how to invest in index funds (ETFs) from the Middle East (UAE, Qatar, Saudi Arabia, Bahrain, Oman, Kuwait, Jordan, Lebanon, Egypt...), as an expat, or from any country outside the US or the UK.
ETF investing is the best way to build wealth and grow your money in the stock market.
As per Warren Buffett, by investing passively in a broadly diversified low-cost index fund, complete beginners can easily outperform the vast majority of professional traders over the long term.
For most expats and Middle East residents, the best way to invest in index funds for retirement is by buying and holding Exchange Traded Funds or ETFs that can be traded using a stock broker.
Therefore, in this video, we briefly cover how to invest in ETFs with the best stock brokers available for Middle East residents and expats. These brokers include Interactive Brokers, Swissquote Bank Ltd, Swissquote Bank Europe, and Saxo Bank).
We also tackle a couple of common investment mistakes most ETF investors make when starting their investment journey (and how to avoid them).
🎥RELATED VIDEOS 🎥
▶️ Index Investing for Beginners: • How to Invest in Stock...
▶️ Beginner's Guide to Investing: • Stock Market Investing...
🗒 SOURCES & REFERENCES 🗒
🌐 Interactive Brokers: ibkr.com/referral/elie849
🌐 Saxo Bank: www.home.saxo/
🌐 Swissquote Bank Ltd: www.swissquote.com/
🌐 Swissquote Bank Europe: www.swissquote.lu/
📚 RESOURCES 📚
🌐 My Resources Page: www.wiseinvestor.me/resources
💬 GET IN TOUCH! 💬
Website: www.wiseinvestor.me
Instagram: / wiseinvestorme
Facebook: / wiseinvestorme
Twitter: / wiseinvestorme
LinkedIn: / wiseinvestorme
⏱ CHAPTERS ⏱
00:00 How to Invest in Index Funds
01:14 What's an ETF?
01:49 Step 1: Open a Trading Account
03:16 Step 2: Fund Your Account
03:58 Step 3: Buy Your ETF
05:11 Common Investment Mistakes
#WiseInvestor #ElieIrani #indexinvesting #etf
ℹ️ ABOUT ℹ️
My name is Elie Irani and my mission at Wise Investor Middle East is to help regular people save and invest money (by themselves) to achieve Financial Independence.
I share money tips, resources, and guides on how to invest sensibly in the stock market using the "Bogleheads" simple investment approach in low-cost index funds and Exchange Traded Funds (ETFs). This proven investment strategy is backed by academic evidence and is endorsed by the best investment experts like Warren Buffett, John C Bogle (aka Jack Bogle), and many others.
Although the channel content is timeless and universal, we cater primarily to Middle East residents and global expats.
⚠️ DISCLOSURE ⚠️
As an Amazon Associate, I earn from qualifying purchases. In addition, I sometimes review or link to products or services that I use and believe you might find helpful. Wherever possible, I use affiliate links. This means that if you use my link to make a purchase or subscribe to the service, I might earn a small referral bonus (at no extra cost to you). All opinions remain my own.
⚠️ DISCLAIMER ⚠️
All information is provided on an "as-is" basis. This is NOT financial advice.
While Wise Investor Middle East, Elie Irani, and all associated persons have researched and reviewed the information provided to the best of their ability, no warranty is made with respect to the accuracy, completeness, suitability or validity of any information in this content.
All parties expressly disclaim any responsibility for any liability, loss, damage, risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any information provided in this content.

[@wiseinvestorme]

Watch the complete beginner's guide to investing here: kzbin.info/aero/PLTsg6N3TQSSZqiUuQ6T4JMZJYzuhwj0XC

[@eliteenglishadu7305]

Thank you. I needed this video

[@dimagodfrey]

Doing God's work Ellie. Thank you

[@anujasherchan8405]

Thank you so much for explaining so well

[@wiseinvestorme]

Most welcome! I hope you got some value out of this video.

[@user-iv2sp8mp7x]

Nicely laid out! Keep going!

[@wiseinvestorme]

Well, I got a few tips from a more established KZbinr...

[@constantinosiacovou2569]

Great video! Straight to the point for ETF investors! Thank you!

[@wiseinvestorme]

Glad you liked it! More videos are currently in the making, so stay tuned...

[@Scabilicious]

Very helpful!

[@wiseinvestorme]

Thanks, I'm glad you found it helpful.

[@rafaelpestana7713]

Very useful video! Many Thanks!

[@wiseinvestorme]

Thanks Rafael, I'm glad you found it useful.

[@lanalane4486]

Many thanks, Elie! Following your wise pieces of advice on the FB Group, nice to e-meet you now as well.

[@wiseinvestorme]

Thanks for your feedback. Glad I could be of help!

[@NegMit]

Such great video to help beginners to understand better 👌

[@wiseinvestorme]

Thanks Isabel! I'm glad you liked it. Also make sure to check out the other video I linked to in the end card.

[@alijasim3332]

it is a great video, specially that middle east content is hard to find. thanks for your effort sir.

[@wiseinvestorme]

Thanks Ali, glad you found the content useful!

[@marafat]

Thank you , very valuable information , I am using IBKR for a while very good platform

[@wiseinvestorme]

IBKR is good, but it's not about the platform. What's more important is the choice of ETFs as well as the overall investment plan. I'm planning on covering these points in a future video.

[@marafat]

@@wiseinvestorme appreciate if you can share top ETFs so I can have good starting point

[@wiseinvestorme]

@@marafat it really depends on your nationality, tax residency, and where you plan on retiring. You also need to take into consideration your ethics and/or religious beliefs. My personal favorites include VWRA (Vanguard FTSE All World - Accumulating) coupled with AGGU (iShares Global Aggregate Bonds - Accumulating) or IGLA (iShares Global Government Bonds - Accumulating).

[@user-pq7bv3iy9q]

Thank you for this video, I am from Qatar. Can you please clarify, are my returns taxable if I buy VWRA ETFS through Interactive Brokers?

[@wiseinvestorme]

VWRA is a UCITS ETF domiciled in Ireland and traded on the London Stock Exchange, so your ETF returns are not taxable (as long as you're a tax resident in Qatar).

[@Dr.RajanGoyal]

Hi, thanks for sharing concise tips on investing. I opened an account with Interactive brokers but wasn't able to buy ETF. It prompted me to upgrade to a Margin account (I currently have a Cash account). Is the way to go?

[@wiseinvestorme]

You don't need a margin account to buy ETFs. A cash account works just fine. Just make sure you have the necessary trading permissions and that you have enough cash in your account.

[@mattsutton7180]

Great video!

[@wiseinvestorme]

Thanks Matt! Glad you liked it. Any particular video topics you'd like to see more of on the channel?

[@hahano1944]

Thanks a lot Elie for all your work to spread financial literacy in our corner of the world. I was thinking of starting with either option 1: VWRA+IGLA or option 2: V80A. I'm an Iraqi expat but I'm not sure where I would be retiring yet. I wonder if you have any feedback on this.

[@wiseinvestorme]

Glad you found the content useful. To answer your question, you can't really go wrong with either 1 or 2. A single all-in-one ETF such as V80A represents the ultimate simplicity. Bear in mind that VWRA and IGLA are denominated in USD while V80A is in EUR. The currency of the ETFs is totally irrelevant and is just a matter of convenience.

[@hahano1944]

@@wiseinvestorme thanks for your reply Elie. Just another question, would it be suitable to invest in VWRA+IGLA as an expat in UAE since the AED is pegged to the USD or the simplicity of V80A May be suitable for investors who don’t want to deal with annual rebalancing ?

[@wiseinvestorme]

If simplicity is what you're after, then V80A is an awesome all-in-one ETF (even if you earn in a currency that is pegged to the Dollar).

[@luappadilla9010]

Well explained.. Ellie, can you please make a video on how to use the interactive broker? Like step by step. Thanks.

[@wiseinvestorme]

This is a video in the making, so stay tuned!

[@faizanwajid8013]

I have been working in middle East for like 3mounths now and I'm looking to invest in middle East and I'm looking for some securities that would give me return and would slowly start investing in trading

[@wiseinvestorme]

I recommend you watch my complete beginners guide series: Investing for Beginners: kzbin.info/aero/PLTsg6N3TQSSZqiUuQ6T4JMZJYzuhwj0XC

[@eliteenglishadu7305]

I opened an interactive brokers account

[@wiseinvestorme]

It's the cheapest of them all (but not necessarily the easiest to use).

[@thameemyousuf8194]

Can you do a comparison video of diff brokerage sites..pros and cons

[@wiseinvestorme]

Thanks for the suggestion. It's definitely on my to-do list!

[@younesboukellal6565]

Thank you for your video a couple of questions related to Sarwa 1-Can you transfer your portfolio from Sarwa to another broker platform if someone leaves the UAE ? 2-what commission are applied on Sarwa for ETF investment ? 3- are we really buyng rhe ETF asset or a contract with Sarwa to follow the price of the ETF similar to CFD contract on etoro where you dont really own the asset but just a contract that follow its price on the platform Thank you

[@wiseinvestorme]

I'm glad you found the video useful! As for your questions: 1. Sarwa holds your portfolio with either Interactive Brokers or Saxo Bank; however, I'm not entirely sure they could transfer your positions to another broker. In all cases, I would simply liquidate my portfolio and move the money to another broker that allows investing in Irish domiciled ETFs (unless you're American). 2. It depends on whether you're with Sarwa Trade or Sarwa Invest. With Sarwa Trade, you don't pay any commissions, but Sarwa makes its profit from the spreads. If you're with Sarwa Invest, your fees are a percentage of your assets under management (typically from 0.5% to 0.8% per year depending on your portfolio's size). 3. You actually own the ETFs with Sarwa. I would personally stay away from CFDs. I hope I've addressed your questions.

[@younesboukellal6565]

@wiseinvestorme thanks for your prompt reply. It was very useful. As a non US citizen and an investor in US ETF's I believe there is no interest on capital gains but only 30% dividends so as long as you stay away from high dividend ETF it should be fine. However, the biggest concern for buy and hold investors is the state tax in case god forbid you pass away. In this case, your family will have to pay a tax of 40% on the total assets to withdraw the fund... which is a lot

[@wiseinvestorme]

Your understanding is correct. With that said, the first $60,000 will be exempt from estate tax. It's only the total US assets in excess of $60,000 that are taxable.

[@younesboukellal6565]

@wiseinvestorme understood thank you Elie. How the dividend tax are paid ...through the broker ? Is it yearly ? And with the Irish domiciled ETF what difference can we expect in terms of growth and dividends vs US ETF ?

[@wiseinvestorme]

Dividends are normally paid in cash in your brokerage account. The dividends payout frequency is typically every quarter or every semester. Irish domiciled ETFs are taxed at a reduced 15% rate due to the double tax treaty between the US and Ireland.

[@midnight-matches]

If we use something like Sarwa and buy stocks (not ETFs) like Apple, Google… does the same tax issues apply? Or these are specific to ETFs?

[@wiseinvestorme]

These tax rules apply to any US situs assets. This includes US stocks, funds (i.e. ETFs), and real estate.

[@hamzakashmiri137]

Which one is better among swissquote Luxembourg or Switzerland?

[@wiseinvestorme]

Swissquote Bank Europe (Luxembourg) tends to be more cost effective for most, but it really depends on your portfolio size and on how often you trade, For example, they charge 0.10% per trade or €15 (whichever is higher). But they also have an inactivity fee of around €15 per month if you don't trade. But unlike their Swiss siblings, they don't charge any custody fees (which could be an issue for large portfolios) nor do they charge Swiss stamp duty on some trades.

[@hamzakashmiri137]

@@wiseinvestorme thanks for the response. I'm trying to get started. Do you have any playlist I can watch in order to get more knowledge about it?

[@wiseinvestorme]

You could start with this playlist: kzbin.info/aero/PLTsg6N3TQSSZqiUuQ6T4JMZJYzuhwj0XC More videos will be coming soon so stay tuned!

[@hamzakashmiri137]

@@wiseinvestorme much appreciated, I'll go through it.👍

[@anthonymourra2956]

Thank you Elie for this great video! Can you please advise what would be the most cost-efficient way to fund/transfer money to IBKR? As per my understanding, Emirates NBD charges AED 105 for international transfers made in AED currency. Based on your experience, what is the best way with minimum fees?

[@wiseinvestorme]

Hi Anthony and glad you found the video useful. There is no "one best way" to transfer money to your IBKR account. It really depends on the amounts you're transferring. For example, 105 AED per transfer is not that bad (but it's obviously not ideal for small amounts). However, IBKR's own exchange rate between AED and USD is possibly the best in the industry.

[@AliRaza-cn3xz]

Would advise using Etoro and I am from Pakistan living in UAE if i buy ETF do i get yearly dividends?

[@wiseinvestorme]

There are better options out there. Interactive Brokers is one of the cheapest. As for the dividends, there are 2 types of UCITS ETFs that are domiciled in Ireland: accumulating ETFs reinvest the dividends automatically in the fund while distributing ETFs pay the dividends in cash. I hope this answers your question.

[@AliRaza-cn3xz]

@@wiseinvestorme could you name any good ETF that pays in cash

[@wiseinvestorme]

VWRD is one example. But I wouldn't count on dividends payments. These ETFs pay on average 1.5% or so in dividends.

[@zhabjoka]

Hi Elie, what do you think of investing through pension plan providers like zurich international? Any thoughts?

[@wiseinvestorme]

I have shared my thoughts on this type of "plans" in this video: kzbin.info/www/bejne/bKDCnYCJd5yKkM0

[@zhabjoka]

Thanks

[@luckyarsenal]

Don't use them as they take a large cut. You take all the risk, they reap the rewards.

[@rageshpillai7265]

What is cost of maintaining a brokerage account? Do they charge per transaction?

[@wiseinvestorme]

Each broker is different. Interactive Brokers don't charge any account maintenance fees. You only pay for the trading commissions (typically 0.05% of your transaction amount or $4, whichever is higher).

[@Za9xe]

how cab aperson from iraq invest when mein country not include

[@wiseinvestorme]

Hi Ahmad. I'm afraid not all brokers accept customers from Iraq. Try Saxo Bank and let me know how it goes.

[@yasirchoudhary824]

Can we use Sarwa for ETF investment in UAE ?

[@wiseinvestorme]

Of course you can! In fact, Sarwa Invest is by far the easiest way to get started in ETF investing.

[@yasirchoudhary824]

@@wiseinvestorme I'm trying to ETF of vangaurd what you mentioned in this video but I'm unable to find ?

[@wiseinvestorme]

I guess you are referring to Sarwa Trade (not Sarwa Invest). Sarwa Trade only gives you access to US domiciled ETFs. VWRA, for example, is an ETF that trades on the London Stock Exchange.

[@faizaniqbal3629]

How can I find out if the ETF is American Domiciled or Irish Domiciled?

[@wiseinvestorme]

Hi Faizan. You could do the search on a European ETF database website such as www.justetf.com. If you can't find your ETF there, chances are that it's domiciled in the US. For US domiciled ETFs you could do the search on www.etf.com I hope this helps.

[@faizaniqbal3629]

@@wiseinvestorme Thank you so much!

[@wiseinvestorme]

Most welcome! I hope you found the video useful.

[@ther0ckstar70]

Thanks for your insight, im stuck between Swissquote Bank and Interactive brokers, I read somewhere that swissquote has higher fee's however I am trying to justify why theirs could better than IBKR.

[@wiseinvestorme]

It is true that IBKR is by far the cheapest, but being a US broker, any cash kept in your IBKR account could expose you to US estate tax. Swissquote has higher fees, but don't expose you to US estate tax at all. Plus their interface is much cleaner and more beginner friendly compared to IBKR. So it really is a matter of lower cost v/s peace of mind.