02 Oct 2020
I intend to invest 5k in a single US stock and hold it for long term. Which platform is more suitable for me?
Did some research and narrowed down to a few Brokers like TD, Saxo, SCB.. Understand that Saxo has inactive fees so it may not be suitable for me. Also, what are some tips to reduce fx fees? Like using transferwise to convert SGD to USD to fund the broker account. How about when you sell the stock?
For your use case, TD Ameritrade will be the better option. Because you are investing a lump sum into a US stock and intend to hold for a long period of time, you should choose a broker that does not charge you fees for inactivity or custody.
However, you should note that TD Ameritrade charges 25 USD for withdrawals, and offer no conversion facility to change USD back to SGD. If such a capability is important to you, you can check out Tiger Brokers which offers a foreign currency exchange facility with spreads of about 0.2-0.4%. They charge a small amount in commissions, but do not charge custody fees.
If your investment amount exceeds 100K USD, then Interactive Brokers will be the best option - otherwise, they will charge you 10 USD in minimum commission every month. They have a strong advantage in foreign currency exchange.
Tiger Brokers and interactive broker is pretty good for forex rates, also good for you if you trade frequently due to the lost cost. You may research on it.
SCB is 10/trade, higher than the former 2. Also, note that the forex rates are not so good. But it is still decent as compared to other brokerage.
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