Hi everyone, I’m 20 this year and was just researching on Index Funds. And if my research are correct index funds are something like ETF right..? I got 2 questions
Can I use tiger brokers to trade with ETF/Index Funds? (And is tiger brokers a good broker?)
And how do I buy stocks? Is it a huge lump sum or monthly contributions?
Perhaps you can go through robo-advisor if your capital is not huge, like stashaway or syfe. WIll recommend equity100 for strong growth given that it's all equities.
Yes you can use tiger brokers to buy index etfs like VTI, CSPX, VOO etc. Just take note that you will incur transaction fees everytime you buy or sell. Same for stocks, dollar cost average, u can buy just 1 share depending on your capital.
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Index ETFs, are ETFs that invest to follow the index, since you can't buy the index directly. ETFs are just funds that are traded on exchanges, hence the name.
Yes, you can use Tiger Brokers. Tiger Brokers has one of the lowest comms out there at USD 1.99/trade and access to US/HK/SG markets. You can check out my brokerage comparison here!
Both are acceptable ways, but as a beginner, many find it easier to DCA since they fear a pullback. That being said, lump sum does beat DCA about 66% of the time if you're going to DCA over a period of 12 months. If you extend the DCA period, the win rate of lump sum over DCA increases. However, since you're 20 (and likely a student), I would advise you to DCA in over a few months since you likely do not have monthly cashflow.
Hope this helps!
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