02 Mar 2020
If I am looking to invest in ETFs each month, is the best way to invest through a bank (POSB Invest-Saver/ OCBC/ etc)? Or are there better ways you would recommend?
Read that the general recommendation points towards using banks (POSB Invest-Saver for below $500, or OCBC for above $500). Are there any other ways of investing in ETFs based on your experiences, that will minimise the transaction fee charged?
On that note, for investing in ETFs, typically what is considered reasonable as management / transaction fee?
Phillip Securities has a Share Builder Plan which is in essence a RSP. I invest $1k a month on the same counters (STI ETF and ABF Bond ETF) offered by POSB Invest Saver. The transaction cost ended up to be just about $6 + a few cents.
This option has a total of 37 other counters for you to choose. But do note that the $6 charges only applies if your monthly transaction is less than or equal to $1k per mth and less than or equal to 02 counters per mth.
If you going for more counters or investing more than $1k per mth, then you will need to invest at least $5k per mth to make the 0.2% or $10 (whichever is higher) worth it.
I think to sum up some thoughts...
doing it with the RSP from the banks, will be more costly at 1% transaction fees. But easier cos it is automated and you dont realy have to think of it... via DCA (dollar cost averaging)
for self investing via your broker, you’ll have to accumulate more for it to make sense and invest at a higher amount so that the $10 to $20 brokerage fee becomes less than 1%. And often you’ll be abit worried on when to buy up the ETF... or you may forget etc.
Accumulate more, then invest quarterly yourself using a broker, that would be cheaper. ...
Read 7 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Standard Chartered JumpStart Account
Up to 1% p.a.
MIN. INITIAL DEPOSIT
MIN. AVG DAILY BALANCE
DBS Multiplier Account
OCBC FRANK Account