facebookIf an online brokerage account charges $25 for each transaction, wouldn't it be not worth to transact in lower amounts? - Seedly

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Anonymous

16 Jul 2020

General Investing

If an online brokerage account charges $25 for each transaction, wouldn't it be not worth to transact in lower amounts?

In that case would the strategy be to transact in higher amounts through longer periods of time (eg. Quarterly). Eg. $1500 quarterly instead of $500 monthly.

Discussion (2)

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If you don mind newly approved brokerage then you should take a look at tigers. They are offering extremely low fees for SGX till end of the year. I think there might be perks too if you use a referral code

Joey Gaeth

16 Jul 2020

BSc Economics at London School of Economics and Political Science

Yes of course. If you're able to invest only $500 monthly, i'd say go with fsmone rsp instead to save on fees.

Assuming the $25 fee you're talking about local brokerages on local stocks, you can use dbs vickers cash upfront which is $10 fee instead and stocks go to your CDP acc. Can sell your cdp stocks afterwards in fsmone which also charge $10 fee.

If you're starting to invest, dca is a good approach if your investment sum is small (<$10k).

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