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Anonymous
Have been doing dca in stashaway for awhile and want to start a bit of DIY stock picking or investing in ETFs. Any advice on which one to use for a relatively newbie trying to reduce reliance on robos.
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Zongzong
24 Mar 2021
Retail Investor at A Few Months
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Chris
24 Mar 2021
Owner and Writer at Tortoisemoney.com
Hmm, personally, if you're just a beginner looking to try out, I think Tiger Brokers is a good choice. It has:
Low comms
Decent FX rates
Super fast account approval
Fast fund deposit
Backed by IBKR and Xiaomi hahaha
Attractive new account promotions
Pre/Post market trading available
Other financial instruments available
The downside around Tiger Brokers is that mainly that it is relatively new (2019 launch). If you wish to consider other brokers, you can also check out my comparison here!
For reference, personally I use IBKR. But IBKR is not suitable for most people starting with small capital as it is built mainly for traders or large account sizes (USD100k), since they charge an inactivity fee.
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I'm using FSMone and TD Ameritrade (also known as thinkorswim)
FSMone (use this if you don't buy often, like once a month)
(+) easy to use, very simple interface and the app is well-designed; signup is super fast and easy
(+) comes with Regular Savings Plan (RSP), helps you dca easily once you setup the banking instructions to transfer money monthly/quarterly (this is why i got started with fsmone)
(+) access to many markets around the world beyond the US
(-) takes commission, one trade is $9+ for me, cheap for RSP as commission will around $1ish each time
(-) delayed data for prices (gotta pay to get instant prices, which is stupid)
(-) can't do options/futures (they have sth called CFDs, which i dont uds and wont touch)
TD Ameritrade (use this if you want to buy options or trade often)
(+) zero commissions to buy and sell stocks/etfs (they earn from clearing your orders)
(+) real-time price movements, and allows pre-market trading (important for traders)
(+) can buy options/futures
(+) allows margin trading if you have more than USD$2500 in account
(-) only access the US market
(-) not so beginner-friendly, you will need to watch some tutorials to get started with the interface and understand the nuances
doesn't hurt to get a few brokerages, especially those which are giving out money like Tiger Broker and Moomoo. they are just tools to get invested anw, the focus should be on what to buy and when to buy