facebookI've just started my first job. With income streaming, I want to start investing in ETF and REITs. Which brokerage is recommended for 21 years old? - Seedly

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Anonymous

30 May 2021

βˆ™

General Investing

I've just started my first job. With income streaming, I want to start investing in ETF and REITs. Which brokerage is recommended for 21 years old?

I've seen DBS Vickers popping up but the reviews on seedly are terrible.

Discussion (18)

What are your thoughts?

V

Victor

30 May 2021

Financial Service Consultant at AIA

Interactive brokers is fine for buy and hold investors and if you are 25 or below, it is even better! Since you are 21 years old, I highly recommend Interactive brokers for your global ETF and FSMone for your local REITs/STI ETF. Interactive brokers has a special pricing for anyone aged 25 and below. They charge you only a monthly USD3 fee until you reach 26 years old, after which it will be USD10. The monthly fee won't be charged if the value of your assets (cash and stocks) are at USD100,000. More info on their website: https://www.interactivebrokers.com.hk/en/index....

The monthly fee can be offset by your monthly fx conversion and trading fees. They have one of the best fx conversion rates and they only charge a very reasonable USD2 fee. Trading fees are low as well. I'm currently investing in a globally diversified ETF, IWDA, which is domicilied in Ireland and listed on the London Stock Exchange and my trading fee is around USD1.91 when I invest around SGD1000/USD720. FSMone has a regular savings plan with very low fees, much better than their competitors (POSB invest saver and ocbc blue chip investment plan) so it is great for local REITs, STI ETF, and local bond ETFs. They also offer US ETFs for their regular savings plan but I'm not a fan of it due to the dividend handling fee, 30% withholding tax on dividends and the US estate tax.

If you decide to sign up an Interactive brokers account, here are some great guides by some local finance bloggers to help you get started:

Investmentmoats - https://investmentmoats.com/money/easy-step-by-...

Betterspider - https://betterspider.com/getting-started-with-i...

They also provide guides on how to fund your account after opening.

Investmentmoats - https://investmentmoats.com/money/fund-withdraw...

Betterspider - https://betterspider.com/funding-your-account-w...

I would steer clear of saxo if you are investing in overseas ETFs/stocks, they charge a high 0.75% fee on fx conversion and a 0.12% custody fee.​​​

View 2 replies

Maybe u can check out Saxo? Fees are low as well, 0.08% with $10 min for SG Stocks. UI is decent and has exposure to numerous other exchanges.

View 3 replies

Kenneth Lou

Kenneth Lou

23 Jun 2020

Co-founder at Seedly

Hi there anon, I agree with you the DBS vickers experience is really not a great one.

For someone of your age, I would actually also consider Robo-advisors because it is way easier to access the markets for ETFs and/or REITs. Rather than having to manually go and do trades. (BUY/SELL) via online brokerages.

Alternatively if you are keen to go down that route, then I would recommend FSM ONE, their web and mobile app for a local based brokerage I would think is the best, and fees are reasonable as well if you want to trade US stocks.

View 1 replies

POEMS or FSMOne are fine

as are TD Ameritrade U.S.. branch and Charles Schwab U.S. branch.

No brok...

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