facebookWhat should a beginner investor who plans to buy mainly S&P 500 ETFs use? RSP (FSMOne), robo-investor (Syfe Equity100) or DIY (Tiger Brokers)? - Seedly


23 Feb 2021

General Investing

What should a beginner investor who plans to buy mainly S&P 500 ETFs use? RSP (FSMOne), robo-investor (Syfe Equity100) or DIY (Tiger Brokers)?

I'm planning to start investing and I currently have very small capital but have emergency fund prepared, looking to DCA about $250 monthly into S&P 500 ETFs. Which method would reduce fees/taxes the most?

Discussion (14)

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DIY Tiger Brokers for sure. Why pay fees to the other clowns.


22 Feb 2021

Author at srsinsin.blogspot.com

Actually if i may add, why don’t you consider quarterly dca or yearly via standard charted trading

  1. they don’t charge monthly inactivity fee (unlike another brokerage that has lse stocks)

  2. it allows you to buy stocks listed on LSE (london stock exchange) stocks, where you can buy ireland domiciled World ETF like IWDA. it’s mostly S&P500 (given US market cap is huge).

  • Why ireland domiciled ETF? simply cause there’s better tax agreement between ireland & us, (iirc 15% withholding tax on capital gains, vs 30% for singapore). this will help to optimize tax.

  • why IWDA? one of the few etfs that reinvest the dividends. this is featured in the book by rich by retirement.

  • why quarterly? given you are looking to dca $250 monthly, i find that it will be more optimal & cost effective to invest $750. given sc trades got min fee of USD 10.70 per trxn, and fees of 0.25%. if you want can even do it yearly $250 * 12.

now till 31 mar, there’s promo if friend refer you get a month of free qualifying trades (amount to be rebated)

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If you have already chosen to invest in the S&P500 consistently, why bother with robos and pay double layer of commissions?

ur gains will compound higher by cutting down commissions.

TD Ameritrade has free commissions and and 0 holding fees. I don think there's much better than that

Frankly, none of the above. If you are looking for the least fees, then the DIY route via Td Ameritrade will be the way to go as the fees are close to zero. You only pay for misc exchange fees and none in commission. There are no other fees (no pesky platform, no inactivity, no monthly fees)

Only thing is it'll take some time to open an account if you don't already have one. But once you have it, you'll find the platform to be really robust.

For lump sum, tiger brokers will give the lowest fees. However i chose FSMone due to its offering of...

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