18 Sep 2020
What is the cheapest brokerage if I want to invest into QQQ etf only? $15k lump-sum, followed by $250 DCA monthly. I'm 21yo, graduating uni next year so planning to buy QQQ for income growth. Any advice?
I know about certain brokerages fees are trade commission based vs AUM. Not sure in my case of lump-sum followed by dca which brokerage is the best? I plan to hold for 5years or so only, not for 15years. Total invested amt will be arnd $30k. Currently only choosing this one etf because I think my portfolio is diversified enough, I have 26% risk in Stashaway and Syfe 100%reit+ and some sg bank stocks. (have a separate $25k cash in bank and insurances settled. no tuition loan.)
For the choice of ETF, I would suggest you may also want to consider XLK and VGT ETF as well assuming you are interested in the NASDAQ technology field as your growth component. The two ETFs I suggested have lower expense ratio and similar holdings like QQQ with slightly different focus, but mainly all in companies in the technology field.
As for investing strategy, instead of doing a monthly DCA, you may also consider doing a quarter DCA or half-yearly DCA to save up your commission fees.
Brokerage wise, I think Interactive Brokers or Tiger Brokers are the relatively cheaper brokerages with access to US market. If you are interested, I can share with you my referral code for Tiger Brokers. As for Interactive Brokers, you may search for some other reviews by the other users in Seedly.
Cheapest brokerage - In terms of fees Standard Chart / Saxo. But depends if you want your stocks to be owned in CDP account or Custodian.
QQQ etf tracks top technology company and it tracks the Nasdaq 100 index. In other words it tracks top 100 nasdaq companies. Mainly tech stocks. (Disclaimer, we might be in a tech bubble now)
Best approach is to DCA and not invest one time lump sum 15K (trust me, you might regret it) especially during these times where market is super overvalued in my opinion.
Above is just my opinion. Anyways do consider subscribing to my youtube channel : Say Do Invest
Tiger broker or TD Ameritrade has the lowest commissions for stock shares which you can consider :)...
Read 8 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
ETFs, Equities, Bonds
0.2% to 0.8% p.a.
ANNUAL MANAGEMENT FEE
EXPECTED ANNUAL RETURN
Web and Mobile App
[PROMO] Get 6-month management fee waiver. Valid till 31 Dec 2021. T&Cs apply. Learn more below.