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Anonymous
What is an appropriate % of trade value to pay in brokerage fees?
I know that popular brokerages such as Tiger charges min. $US$1.99 per trade. With GST it is around $2.13USD roughly. $213USD trade value would mean the fees take up 1% of the trade value. Is it worth it to pay the 1% trade value for someone who is buying and holding long term?
I know there are zero fees brokerages such as TD and Firstrade, but TD has horrendous account opening times,(I'm still waiting on mine), and Firstrade is not regulated by MAS which is something I cannot get behind. Any advice on this would be appreciated. Thanks!
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Lump sum buy and hold long term? if you can successfully stock pick, i think 1%, 2% also no problem. imagine $213 can 10x become $2130, $2.13 or $4.26 fees is nothing.
but if DCA, the fees will add up over the years. then i may consider in future slowly switch to TD.
hope this helps
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thefrugalstudent
10 Jun 2021
Founder at thefrugalstudent.com
Hi Anon,
Personally, my cut off would be 0.65%. Why? Because that's the fee I would pay for using a...
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Of course the lower the better. You can use tiger/moomoo while waiting for a TD account.