DCAing into VWRA with IBKR. How much is sensible ?

Hello everyone. I am new to these forum pages. Nice to see so many of us here trying to make our lives better by making our money work for us.

I just started working recently, so now with my own income i want to get some real DCA going. I used to put $400 a month into SA36% risk and i realised it's actually not that great. The p.a. fees do take quite abit. So now im interesting in getting my hands into VWRA.

That said, i understand using IBKR has a flat forex rate of $2.40. So meaning the less i put in a month, the greater % it takes. Nonetheless, there's also commissions to consider.

With all these factors in mind, is there like minimum optimal amount one can look at monthly to best DCA into VWRA ? I believe i might be able to put in about 800 SGD a month. Although that will also mean I wont be able to invest as much into sg dividend yielding stocks, but that's a discussion for another day.

Thanks for reading. Cheers !

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Wake Up Your Dollar

03 Sep 2021

Hi, if you are investing for the long term, the flat forex rate should be much of a concern to you because you will only be incurring the fees once. If you want to minimize the fees, there is also nothing wrong with doing $2400 quarterly. Over the long run, monthly vs quarterly contributions is not going to make a big difference. What matters the most is your discipline to stay the course. Good Luck!

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CTKS

03 Sep 2021

Hi anon, depends on how much money you have. As a rule of thumb, I try to keep commissions below 1% of each trade. I think $800 per month is an excellent start!

if you find your commissions adding up to >1% per trade, consider DCA-ing every 2-3 months instead, thats what i do to keep my commission lower

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