facebookHow much is the optimal amount to invest into a single stock? $5k? $10k? How do I determine how much I should be putting into a single stock? - Seedly

Advertisement

Anonymous

23 May 2020

βˆ™

Stocks

How much is the optimal amount to invest into a single stock? $5k? $10k? How do I determine how much I should be putting into a single stock?

What would be the breakeven amount to make it worth it for example if I want to buy into DBS? Is there a criteria that I should be considering that'll determine how much I put into the stock?

Discussion (4)

What are your thoughts?

Learn how to style your text

Hi, as Dan L have mentioned, the best way is to optimise the sales charge and commision to the trading platform.

For myself, I'm using DBS Vickers Cash Upfront. (Min sales charge $10). Thus average about 8k investment per trade will be optimal.

The stocks will be held in CDP, central depository. Which means you can sell thru other brokers / platform

I sell thru FSMone as the min sales charge is also $10. For DBS Vickers, sell min is $25.

Assuming a commission rate of 0.28% and minimum of $25- you'll likely want to transact $8,928 to meet the minumum brokerage

e.g. Singapore Stocks

$5,000 * 0.28% = $14, but you'll still pay $25

$10,000 * 0.28 = $28​​​

View 1 replies

Pang Zhe Liang

13 Mar 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

You need to know your investment objective, as well as your overall portfolio based on your risk app...

Write your thoughts

Advertisement