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Anonymous
Should Singaporeans do Magic Formula Investing? Is it recommended for people with low starting capital of $1-2K?
I see high brokerage fees for overseas markets (e.g Saxo $4USD/transaction).
I understand you'd need about 20-30 stocks to be purchased over a year, and repeated. But as it will incur transaction fees for each company's stock I buy, is it still worth with such small capital or I should wait till I have more so that it weighs out transaction costs?
I know that it can also be done in the Singapore Market. However I think for more potential growth overseas markets like EUR/US might be better? Do share any other thoughts/opinions you have to us small-scale retail investors!
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Nope. If you have low capital, save it up and do a lump sum purchase if you are into overseas stock. This will cut down on transaction cost.
If not, you can still go into Singapore SGX and do DCA monthly with low capital.
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I wouldn't do it.
Transaction costs will eat you alive.
If you have low capital, focus on your inc...
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Tastyworks has no brokerage fees for buying and selling of US stocks.(Just like robinhood)
Unlike Saxo it does not have custodian fees or inactivty fees either.
Tastyworks allows SG non-US residents to register for their brokerage.
DBS Remit can be used to wire money into tastyworks account. I have done it and it requires zero transaction fee. The FX rate is also extremely competitive for lumpsumps. Downside is only the fact that there is a USD 45 withdrawal fee in tastyworks.
Cheers on your investing Journey!