Hi im planning to invest in a s&p ETF (preferably irish domiciled) and a china index ETF and china tech etf. Which broker will be suitable for me?

Hi im planning to invest in a s&p ETF (preferably irish domiciled) and a china index ETF and china tech etf. (havent decided but cqqq/kweb/3067 are some i am considering) Which broker will be suitable for me?

i have some considerations
1) I understand that moomoo & tiger have low commission fees but tiger does not have LSE so I cant get ETFS that are irish domiciled. will i be losing more money if i go to another broker with higher fees but can get irish domiciled ETFs or am i better off using tiger? If it helps, i only plan to invest around ~2k into the S&p etf and may not even DCA at all.

2) for the china ETF and china tech ETF, i plan to invest around 2k each and will be DCAing quarterly.

Have thought about Fsmone RSP but I dont plan to DCA every month because i prefer lumpsum investments and Would like to try my hand at stock picking but fsmone RSP only allows ETFS if im correct.

Do feel free to correct me!

Tiger Brokers Moomoo Singapore FSMOne Fundsupermart TD Ameritrade Interactive Brokers

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thefrugalstudent

05 Jul 2021

Founder at thefrugalstudent.com

Hi Anon,

Investing in irish-domiciled ETFs doesn't necessarily result in cost savings. As you mentioned, broker fees are another factor to consider when making the decision between Irish-domiciled ETFs and US-domiciled ETFs. I actually wrote a post about this on my blog where I find that it's cheaper to invest in US-domiciled ETFs using low-cost brokers.

If you plan to invest more frequently in China ETFs, then your main concern for brokers should be around this. CQQQ, KWEB, 3067 are listed on US/HK exchanges, so using a broker with low fees for these exchanges will be your priority. Tiger and Moomoo are the ones that stand out here.

If you do decide to go with an Irish-domiciled ETF, you'd have to pick either IBKR, Saxo, or SC Online. Since IBKR and Saxo both charge recurring fees, I'd advise against them especially if you don't plan to DCA.

Hope this helps!

Regards,

thefrugalstudent

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jo

03 Jul 2021

Hi anon,

Yes you’re right Irish-domiciled ETFs are listed on the LSE so you can’t access them through tiger/moomoo. You can access the LSE via IBKR or SC

However, I presume that you’re just starting out with a small capital, in that case I would actually suggest that you save yourself the hassle and just invest into a US ETF that tracks the S&P500 index. I presume you were looking into Irish-domiciled ETFs because of the 15% withholding tax (vs 30% for US), however do note that this is for DIVIDENDS and like what ^ mentioned the goal of investing into S&P500 would be more for capital gain rather than dividend. So actually it might (do your own calculations) be more worth to choose a broker with a lower commission fee such as tiger/moomoo that can actually compensate for the higher tax on dividends.

Also IBKR charges USD10/mth of monthly inactivation fee for accounts <USD100k that will eat into your returns, so a suggestion would be to switch over to Irish-domiciled ETFs only when you have >USD100k.

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