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How many lots can an investor get from investing $500 for example? Can he get lesser than 100 units when investing with lesser capital?
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Elijah Lee
05 Aug 2019
Senior Financial Services Manager at Phillip Securities (Jurong East)
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Tan Wei Ming
05 Aug 2019
Founder and Writer at Frugal Youth Invests
If you are buying through a brokerage house then the minimum shares you have to buy is 100 shares.
Assuming you can only invest $500 every month, buying odd lots is only possible with regular savings plan.
You can check out POSB InvestSaver, OCBC Blue Chip Investment Plan or Philips Share Builder Plan.
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Alvin Teo
03 Aug 2019
Aviva Relationship Consultant at Aviva Affinity Channel
The short answer: It depends on the stock price.
*you must buy minimum 1 lot = 100 share of the stoc...
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The number of lots depends on the share price, so you may not necessarily get 100 share with $500 (think DBS/OCBC). However you can buy odd lots if you really need to, but I highly discourage it. Brokerage houses will allow transaction of odd lots (I'm from Phillip and I know for a fact it can be done) but poor liquidty and wide spreads should be enough reason for you not to buy odd lots.
Rather than trying to invest in shares with $500 a month, save your funds and wait for the right price. You'll get a better deal that way, with a better margin of safety. Due to transaction costs involved, I won't recommend transacting in shares if the transaction cost is 0.5% of the contract value. If your budget is low, you would be better off doing UTs on POEMS in this case, as there are no sales charges, platform, or switching fees.