Buying S&P500 ETFs, questions on Tax and brokers?

Hi Berfont Since you are gonna invest monthly why not go for ibkr since the fees are much lower and the user interface is pretty straight forward.​​​

Hi Berfont,

If you're planning to invest via a US stock exchange, unfortunately, you will not be able to find an accumulating ETF like CSPX. The reason is that in the US, ETFs are obligated to pay out their dividends, much like REITs. So they will almost always be distributing ETFs, and you will inevitably be charged the 30% withholding tax.

If you wish to invest in something like CSPX, I'd recommend you simply buy CSPX. This would mean you need a broker with access to the LSE, which Tiger and MooMoo don't have. Between Saxo and SC, SC has lower fees since it doesn't charge a custodian fee and (I believe) a slightly lower commission fee. If you plan to hold CSPX for the long term, you'd probably be able to hit priority banking status with SC as well, which will further reduce your commission fees in the future. However, the downside is that even though the commission fee is smaller than Saxo, it's not quite as small as MooMoo's/Tiger's commission fees, so if your monthly investment is going to be $500, a significant % of that will go to fees. Perhaps you can consider accumulating a few months' worths of investment money and invest every quarter or so to mitigate this.

Hope this helps & all the best!

Regards,

thefrugalstudent